Word-of-mouth marketing, when used effectively, is a great tactic for creating demand for your product. It is especially advantageous for entrepreneurs who are still starting their own business. What makes it such a great way for promoting your business is that it’s based strongly on your customers. It can be any number of ways like these.

Pass-along. This is usually employed by internet-based businesses. An example of this is an automatic advertisement footer of an outgoing electronic message from a user of the service to a recipient which may be a potential future customer.

Buzz-marketing. This method involves celebrities or popular people to share their positive experience with your product or service. To create the ‘buzz’ about your product, the message has to be positive and provocative to the viewers, listeners, or readers.

Incentive Viral. This plan gives your present customers incentive to encourage others to use you product or service. A very apt example that uses this scheme is multilevel marketing companies, which use their customers as their agents also.

Personalizing. You get higher responses when people know that the message comes from a friend, someone they closely know. It adds credibility to your message. So you might want to insert the name of your user for your message, such as, “Jane thinks you might be interested in availing of our __ service”, as it is sent out to a recipient.

Lastly, it is important to create metrics for your word-of-mouth campaign to see if it’s effective or not. You can also use the data for analyzing and devising better ways at campaigning your product. You might also want to know the reasons for your customers’ satisfaction so that you can use it to your advantage when promoting your product.