Have you ever been to see a blockbuster movie, sucked in by the hype only to find out it’s pretty meh? You’ve forked out the money for the popcorn and choc top, parking and tickets, and it’s left you feeling enraged. What about the opposite? Maybe you’ve taken a chance on a movie you’ve never heard of, only to discover it’s fantastic, and you can’t stop raving about it. So, does word of mouth still hold power in the age of social media and big-budget advertising? It seems to me, the answer is yes. And small business owners should be paying attention.

When the hype train crashes

There’s a graveyard in Hollywood for films that didn’t live up to their hype. Every year there’s one… Remember The Flash? DC pitched it as one of the best superhero movies ever. Nostalgia. Tick. Quirky lead. Tick. Fandom on board. Tick. But when it hit cinemas, audiences weren’t convinced. Where was the groundbreaking story they’d been promised? The whiz-bang special effects? Instead, they got clunky CGI, a confusing plot and a slew of behind-the-scenes controversies surrounding the film’s star. Bad word of mouth spread fast and the film lost millions.

The same thing happened with Doctor Strange in the Multiverse of Madness Marvel fans expected an epic, game-changing story, but instead an underwhelming and confusing plot left everyone scratching their heads. Despite its massive marketing push, lukewarm word of mouth meant it didn’t reach the heights of other MCU hits.

Then there’s the Disney reimaging of Snow White. The live-action remake featuring Wonder Woman star Gal Gadot has been hyped as a must-see modern take on a classic fairy tale. But despite its $250 million budget and the star power of its cast, the film has received a lukewarm reception from critics and fans alike. The lines have dwindled and moviegoers’ wallets have snapped shut  with the film now projected to lose Disney millions.

The underdogs that won the race

Some of the biggest success stories in film and TV didn’t come from blockbuster marketing. From My Big Fat Greek Wedding (one of the biggest rom-com hits of all time) to Muriel’s Wedding ( a cult classic that spawned a namesake musical) to recent Aussie horror success Talk To Me, which earned $90 million at the box office. Word of mouth has been responsible for dozens of unlikely sleeper hits.

The same applies on the small screen. Think Squid Game. The Netflix series was released with little to no fanfare but became an underground hit and pretty quickly went mainstream. As soon as people started watching, they couldn’t stop talking about it. The Korean drama became a global phenomenon all because people told their mates, “You have to see this.

Cult TV shows like Buffy the Vampire Slayer, Breaking Bad, and Stranger Things followed a similar path. They started with niche audiences, but passionate fans spread the word, turning them into pop culture giants.  The lesson: Big-budget advertising can’t match the power of real people recommending something they love.

Now, let’s put this under a small business lens….

Forget Hollywood for a sec and let’s move closer to home, Australia has its own tales of small businesses that skyrocketed thanks to positive word of mouth.

Dave Fogerty, creator of The Oodie.

Aussie success stories: from kitchen table to million-dollar empires

The Oodie

Take Davie Fogarty. Thirty-year-old Fogerty is a self-taught entrepreneur responsible for some of the fastest-growing products sold online today. His best-known business, The Oodie, which combines the warmth of a blanket with the comfort of a hoodie, began with a $500 investment from his kitchen table. Fogarty’s focus on quality and customer satisfaction led to people sharing their love for the product online and with friends. This organic buzz propelled the Oodie into a multi-million-dollar business.

Clean Tea

Jordana Edwards launched Clean Tea as a small market stall in Byron Bay with only three teas. The range was created with the help of her naturopath mum, Amanda. Over a decade later and thanks to the power of a great product and enthusiastic customers, Jordana has grown her business to over 50 blends and increased her range to gift boxes. Word of mouth transformed her small venture into a thriving multi-million-dollar company.

The Party People

The Party People began as a humble family business, with Mala Salakas and her father Peter Nikolas operating from their home. Their commitment to providing a vast array of party supplies and exceptional customer service led to positive word of mouth. Today, The Party People boasts Australia’s largest party supplies retail outlet and a highly successful online store, serving customers both locally and internationally.

Why word of mouth matters for small businesses?

If you’re a small business owner, you don’t have Hollywood’s massive marketing budgets. But you do have the power of word of mouth, and that can be worth more than any billboard or flashy ad campaign

4 ways to put word of mouth to work for your business

1. Deliver an experience worth talking about
   Average doesn’t cut it. If you want people to shout out your brand, you need to be exceptional. Whether it’s outstanding customer service, a quirky product, or an unexpected touch that delights, give your customers a reason to spread the word.
2. Encourage customer reviews and referrals
   Just like people trust their friends’ movie recommendations, they trust real reviews over marketing speak. Encourage happy customers to leave a product review or write a testimonial for your service. Better still get them to record a video. And if you’re having trouble getting customers to do so, make it part of your customer journey and follow up after sales with an offer of a discount on their next purchase in exchange for a review.
3. Engage with your community
   The best word-of-mouth businesses create a sense of community. Why do you go to a certain café when another may be closer? Maybe they always remember your name and your order? Relationships count and building great relationships with your customers turns them into advocates.
4. Stay authentic
   Hype is great, but if you don’t deliver the goods, people will talk. Be real about what you offer, focus on quality, and let the results speak for themselves. One bad experience spreads fast, but so does genuine enthusiasm when you get it right.

Word of mouth as a marketing tool is alive and thriving. Whether it’s a surprise indie hit, a cult TV show or a local restaurant, people can’t stop raving about it. Personal recommendations still have unmatched influence. So if  you want to grow your business, don’t just rely on ads, make sure you’re giving people something worth talking about.

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