Friday, January 15, 2010

Word-of-Mouth (WOM)

Word-of-Mouth (WOM) is a very effective and also cheap way to advertise.

Many business owners believe they are not able to influence word of mouth advertising. However, this is not entirely true. Just think of what you tell others after going shopping at a place with outstanding services or how many people you tell if you had a very negative shopping experience.
Since there is a vast number of products and services, we look at what our friends and coworkers buy and what they had positive experience with.

With WOM, the customer is being influenced through a recommending person, instead directly through ads or commercials. A satisfied customer will tell about three people about his positive experience, whereas an unsatisfied customer will tell his negative experience about 10 times.

Stimulate a positive referral among your customers – for example with a call, asking whether they are satisfied. To get this far you will have to offer your clients a lot: your services have to be convincing and they have to be outstanding. Offer your customer a positive experience that customers do not expect like that. People who get more than they expect will talk about it. Of course, this works best when you define your target clearly and you know what they expect.
Take it serious when your customers give you negative feedback. Try everything to make it better so your customers will have to fight with the same problem in future anymore. Don’t forget to ask new customers who told them about you.

Count on the oldest and probably most effective way of marketing – as a trustworthy referral is better than every ad.

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