Word Of Mouth Marketing (Part One)

"My business wouldn't be where it is today if it wasn't for word of mouth."

Most people agree with this comment. Typically, depending on the industry or profession, people estimate that between 30% and 80% of their new business comes from word of mouth or referral, with the majority at the higher end.

Yet, when asked what program they have in place to stimulate and develop word of mouth marketing, managers typically say that they rely on satisfied customers spreading the word.

In other words, they leave it up to chance.

Is your business surviving, even thriving, based on chance? If you don't have a word of mouth marketing strategy and system in place, it is.

And from a promotional point of view you must understand this basic premise:

"You only get good word of mouth if you give people something to talk about."

Before looking at what is involved in a word of mouth marketing strategy, let's consider these comments from Jerry Wilson author of 'Word-of-Mouth Marketing'.

The Talk Factor "Like it or not, every company does have a reputation and an image. And every day, people talk about the company; it's products and services. This talk adds a little or subtracts a little from that reputation. Day by day, a hidden, spontaneous, unsystematic network of talk is either eroding or building the company image."

"Most managers seem oblivious to what their company really looks like to others and many are most emphatically deaf to the talk factor. They don't even try to ask themselves 'What are people saying about us?' They worry about managing things - numbers and people, but don't understand that managing word of mouth might be the most important activity of all."

Human beings have networks. According to Michael Kielly, publisher and editor of Australian 'Marketing' magazine, typically people's networks are - o Intimate with 10 to 15 people o Social with 150 people o Acquaintances with 500 people.

Young people, backpackers, ethnic groups and of course computer users tend to have larger networks. Your task is to get them talking positively about you.

Insider Talk Word of mouth marketing begins within your organisation. You can get a fairly true picture of a business from what employees say to one another informally while at work and outside of work.

Jerry Wilson makes the observation that when the boss makes statements about the business, or there are carefully constructed advertising campaigns communicating the latest company promises, we tend to treat them with a fair degree of scepticism. We generally require further evidence before giving them the benefit of our doubt.

Yet, when even the most lowly employee makes a comment about the way the company does things, particularly if they are badmouthing the company, this is seen as far more believable. It is accepted without proof because it's come from the horse's mouth. And we pass on their comments, or warning, with confidence and soon this 'truth' spreads like wildfire rapidly outstripping the expensive advertising message.

In the same way, family talk from partners and close family members of employees is generally accepted as far more believable that the official company communications.

In his book, "The Secrets of Word of Mouth Marketing" author George Silverman includes 10 powerful reasons to develop word of mouth.

1. It's the most powerful, influential, persuasive force in the marketplace.

We all know this innately - we can ponder forever, but when our best friend calls and says, "You've just got to try XYZ Restaurant" we pay attention. If the local paper has an ad' giving the same message we probably won't even notice.

2. It's something that gives the buyer the experience of the product or service.

There are only two ways for people to get experience - actually trying it or hearing about someone else's experience. The best way to appreciate a new model car is to test-drive it. The next best is to have a friend tell you that they have just bought this model and talk you through the ins and outs of it. This is the next best thing to experiencing it yourself.

3. It's independent so it's credible.

At some level, we just aren't going to believe what the company or its promotional material says. We know they have a vested interest and are likely to embellish the truth.

4. It becomes part of the product itself.

By this Silverman means that when a product or service gets the thumbs-up this takes on a life of it's own.

5. WOM is delivered directly to you, so it's custom-tailored, relevant and complete.

No ad can speak directly to you as a unique individual. When a friend is describing it to you, however, they're talking about the product or service for you. Very, very powerful!

6. It's self-generating and self-breeding, and it grows exponentially, sometimes explosively.

This is the experience you get when you go to the footy and people are talking about taking the new rail trip from Darwin to Adelaide. You hadn't even thought about it till then, but suddenly it seems like the thing to do! At work next day, you know what you'll be talking about...especially if your team lost the footy!

7. It's unlimited in speed and scope.

Just think of the new language that's developed for text messaging particularly amongst the young. Can you imagine how long it would take to promote and educate people in a new language using formal communications strategies?

8. It can originate from a single source, or a relatively small number of sources.

Influencers like to influence, Silverman points out, and you know this is true. You also know the thrill of being the one who can walk into the room and announce the product you've found that's the answer to everyone's problem. Or even better, you've discovered a plumber who turns up on time and clears up any mess - that will get their attention! This is how it feeds and spreads. The next person you told can't wait to get on the phone and spread the word.

9. It can be tremendously time-saving, efficient, and labour-saving.

This speaks for itself.

10. It can be inexpensive to stimulate, amplify, and sustain.

We all like to call someone we know has high standards and investigates products thoroughly when we are searching for something. I know just who to call. I'm sure you do too. Get your service or product on the other end of this, and people will come to you; you don't have to go looking.

About the author: Jurek Leon is a speaker, trainer and consultant. To subscribe to Jurek's FREE monthly email newsletter go to the Free Articles section of his website www.terrifictrading.com