Unlocking Explosive Growth Through Word of Mouth: Wise's Secret Sauce

In today's digital age, where advertising noise is louder than ever, Wise (formerly TransferWise) has managed to carve out a significant space for itself in the international money transfer market. With a strategic focus on word-of-mouth marketing, Wise has achieved remarkable growth, making it a compelling case study for businesses aiming to harness the power of customer recommendations. This article delves into Wise's journey, exploring the tactics and insights behind their word-of-mouth success, as shared by Milan Puris, Chief Product Officer at Wise, on Lenny's podcast.

The Power of Word of Mouth in Growth

Wise's growth trajectory is a testament to the transformative potential of word-of-mouth marketing. According to Milan, about 70% of Wise's growth is attributed to customers sharing their positive experiences with others. This staggering figure highlights the importance of creating a product that not only meets but exceeds customer expectations to the point where they feel compelled to share it with their network.

Key Strategies for Driving Word of Mouth:

1. Delivering Exceptional Value: Wise focused on offering a service that was significantly cheaper, faster, and more convenient than traditional banks. This created a 'wow' factor, encouraging customers to share their experiences.

2. Listening to Customer Feedback: By paying close attention to customer feedback, Wise identified three main areas to focus on: price, speed, and ease of use. This customer-driven approach ensured that improvements were aligned with user needs, enhancing satisfaction and advocacy.

3. Making the Value Visible: Wise found that customers believed they were saving money, but they didn't always believe the amount saved until it was clearly illustrated. Implementing a comparison graph showing the savings compared to traditional banks significantly increased the sharing rate. This highlights the importance of not just providing value but also effectively communicating it.

4. Building a Mission-Driven Brand: Wise's mission to make international money transfers cheap, fast, and fair resonated with customers on an emotional level. This alignment between the company's goals and customer values fostered a strong sense of community and loyalty, further fueling word-of-mouth growth.

Organizational Structure to Support Growth:

Wise’s unique organizational structure, which blends global and local product teams, allows for rapid innovation and adaptation to customer needs across different markets. This flexible approach enables Wise to tackle complex regulatory environments and deliver tailored solutions, enhancing customer satisfaction and advocacy at a local level.

Lessons for Other Businesses:

Wise’s success story offers several valuable lessons for businesses aiming to leverage word of mouth:

• Focus on delivering exceptional value that meets and exceeds customer expectations.
• Actively seek and listen to customer feedback to guide product improvements.
• Clearly communicate the value your product offers to encourage sharing.
• Cultivate a mission-driven brand that resonates with customers on an emotional level.
• Adopt an organizational structure that supports flexibility and rapid adaptation to customer needs.

By putting customers at the heart of their strategy, Wise has not only achieved impressive growth but also built a loyal customer base that continues to fuel its expansion through word of mouth. This approach underscores the enduring power of customer recommendations in driving business success.

For more insights and detailed strategies from Milan Puris on driving word of mouth, listen to the full conversation on Lenny's podcast here.