word-of-mouth marketing | Dr. Ivan Misner®

26Aug2021

Word-of-Mouth Marketing is Always Workingstring(41) "Word-of-Mouth Marketing is Always Working"

August 26, 2021

Satisfied Customers, word-of-mouth marketing Marketing/Sales, Mouth Marketing

You’re getting word-of-mouth marketing every day. Even if you think, “I’m not asking anybody to refer to me, so I don’t need to concern myself with this. If I provide good products or services, I’ll naturally get some customers by word of mouth. Why bother with plans and strategies? I’m getting free word of mouth advertising every day, and it’s not costing me any time or effort.”

Word-of-mouth marketing is always working, you ARE getting it every day. It just may not be the kind you’re thinking of. Unbeknownst to you, the message people are hearing about your business may be vague, not too clear. It may even be – negative.

Satisfied Customers are Good, Right?

“How can my word of mouth be negative? I have plenty of satisfied customers.” Yes, we business professionals are very grateful for our satisfied clients. However, they may not be the ones doing the most talking. The demanding, unreasonable customer who left your establishment very unhappy and less than satisfied, is probably going to talk loudly and for a long time.

One study revealed that the average dissatisfied customer complains to eleven people about their experience, and those eleven each tell five others. That is an average of sixty-six people hearing ‘horror’ stories about someone’s unhappy trip to your store.

Does your average happy client make sure that sixty-six other people know about your great service and products? It sure would make business easier if they did.

Is it Positive AND Accurate?

Positive word of mouth that is inaccurate or aimed at the wrong target market may be as detrimental to your business as the negative type. If someone gets the mistaken idea that you’re in the trucking business when you actually sell trucks, they may get aggravated and frustrated enough while straightening out an honest misunderstanding that it costs you future business and referrals. Similarly, if your focus is on high quality and someone is promoting you as a low-cost provider, unrealistic expectations are created.

It is important that your marketing message be conveyed accurately and that your prospects know what to expect. It is a lot easier to exceed the customer’s expectations if those expectations are realistic.

Is it Vague and Misleading?

Even without the occasional disgruntled ex-customer, your word of mouth may be too vague to be of any use. For example, you are a tailor, and one of your clients is talking about you with their friend. “Good tailor, eh? What do they do besides alterations? Do they do reweaving?” If your client is unable to answer those questions, the message is too vague to get results.

Or it may be misleading. “Well, they have a full lineup of men’s clothing, but I don’t know if they do custom tailoring or alterations. It may all be ready-to-wear.” The uncertainty can create doubts, again costing you the referral.

Without a strategic plan, you have very little control of what’s being said about you. Without a way to measure the results of your word-of-mouth marketing, you have no idea if it’s really working for your business.

Good customer service is important because it reduces negative word of mouth. However, by itself, good customer service won’t generate enough positive word of mouth to build your business. Word-of-mouth marketing is always working. Make sure it is working FOR you rather than against you.

What is your experience with positive word-of-mouth marketing? Share how it has helped your business in the comments.

19Dec2019

Investing in Your Social Capitalstring(32) "Investing in Your Social Capital"

December 19, 2019

Ivan Misner

professionalism, Referrals, word-of-mouth marketing Referrals, Social Capital, Word of Mouth 1

I’m sure all entrepreneurs have heard of financial capital, but many may not have heard of social capital. Social capital is, in fact, very similar to its monetary sibling. It, too, is accumulated by an individual or a business and used, or is available for use, in the production of wealth. Put more simply, it’s the accumulation of resources developed through personal and professional networks. These resources include ideas, knowledge, information, opportunities, contacts and, of course, referrals. Social capital is built by design, not chance.

Social capital is acquired through networking because successful networking is all about building and maintaining solid, professional relationships. The trouble is we don’t have the natural community-like business relationships that existed before. Many business owners hardly know their own neighbors, let alone the local businesspeople in town. Therefore, networking is critical to an individual’s success in business.

Effectively developing your social capital can be a daunting task. However, doing so within a structured, organized networking framework will leverage your efforts and help you begin building your balance of capital to positively impact your bottom line. Here are some keys to creating social capital that will help you form the foundation of your business endeavors:

Plan your word-of-mouth

I’ve learned a great deal about planning and starting new businesses. Many years ago, it used to surprise me that 50 percent of all businesses fail after only three years in operation. However, now that I know how little planning many businesses do, I’m surprised that only 50 percent fail. If you want to be successful in business, it’s critical that you plan your work and work your plan. Furthermore, part of your plan should involve your strategy for building your business through word-of-mouth.

Give referrals

Every day, week and month, entrepreneurs strive to build their businesses through referrals. Part of this process is to build a team of people whom we recommend and refer to. This is part of the process of building your social capital.

If you’re not already a member of a strong contact network, find a chapter near you and get started. There’s no better way to systematically develop a solid base for building social capital than in an organization dedicated to helping you succeed in this endeavor.

Show professionalism at all times

Being dependable, delivering a product on time, meeting appointments consistently and treating others with courtesy will give you a professional reputation. This will cause you to be remembered by those you wish to have become a contributor to your social capital.

It’s a dog-eat-dog climate in the business world today. Competition is fierce, and some entrepreneurs employ down-and-dirty tactics. Studies have shown that one of the most important factors in doing business by referral is someone’s “professionalism.” By remaining professional at all times, you’ll rise to the top of the barrel and succeed where others will fail.

As you invest your time in developing your social capital, know that you are, in fact, increasing your bottom line. Strive to make the most effective use of this investment. Do everything possible to thoroughly enhance the relationships you develop in the coming year because social capital definitely leads to improved financial capital.

21Nov2019

Making Word-of-Mouth Marketing Work for Youstring(43) "Making Word-of-Mouth Marketing Work for You"

November 21, 2019

Ivan Misner

business networking, Cave Dweller, Referrals, word-of-mouth marketing Collaboration, Networking, Referrals, Word of Mouth 4

Word-of-mouth marketing is often considered one of the oldest and most powerful forms of advertising. In fact, most business people understand that it works–they just don’t know how it works.

If you want to be successful at developing word-of-mouth for your business, you should be as organized and thoughtful about it as you are about other types of advertising and marketing. In fact, if you take this approach, eventually, you can get most of your business exclusively through word-of-mouth! The key to creating a successful word-of-mouth program lies in developing a formal plan for systematically meeting people and cultivating relationships with them. Here are ten ways for you to get your own word-of-mouth marketing program off the ground.

Avoid being a cave dweller.

Get out and meet people. Start by setting a goal for the number of appointments you’ll establish with people you wish to develop networking relationships with every week. Social capital works for everybody, not just people who set out purposefully to become networkers.

Ask for the referral.

There are specific techniques you can learn and develop that will help you hone your ability to ask for the referrals you want. One such technique is to ask “Who do you know who…?” You would then list several types of people you can help, such as someone who is new to the area, someone recently married or someone who has just started a business.

Join three networking groups.

Consciously select at least three different business or networking groups to join in the next three months. These groups might include chambers of commerce, community service groups and trade associations. When joining various organizations, make sure you select a well-rounded mix of business groups in which to participate. Try to avoid being in more than one group per category (i.e., two chambers of commerce), as this will divide your loyalties and put you in a position where you’ll be making promises to too many people.

Create referral incentives.

Develop a creative incentive to encourage people to send referrals your way. A music store owner, for instance, sends music tickets to people who refer business to him. Another example is the chiropractor who posts thank-yous on a bulletin board in his waiting area to all his patients who referred patients to him the previous month.

Learn, learn, learn for lifelong learning.

Spend time developing your networking skills. Read books and articles on networking, listen to tapes, and talk to people who network well. Networking is an acquired skill.

Act like a host.

When attending a business mixer, act like a host, not a guest. You are wasting your time at mixers if you stand around visiting with coworkers or others you already know rather than meeting new contacts and introducing them around. These events offer a great way to increase your visibility! If appropriate, ask to be the ambassador or visitor host in the organizations to which you belong. As such, it will be your official duty to meet people and introduce them to others.

Create an elevator pitch.

Invest time in developing a brief message about your business that explains what you do. What would you say? I want you to keep in mind that this is not a sales pitch; it is a creative and succinct way to generate interest in the listener. When you introduce yourself to others, use your elevator pitch. Chances are, this will help them remember you and what you do. Keeping these seven rules in mind when you create an elevator pitch will set you apart from the crowd.

Take notes and follow up.

When you meet someone and exchange cards, take a few moments to flip the card over and jot down some information about them or their business that will help you remember them and follow up with them later. This is a very simple, yet powerful, way to make a great first impression that can be developed into a mutually beneficial networking partnership. When you follow up, I recommend that you offer opportunities, whether a simple piece of information, a special contact, or a qualified business referral.

Talk less and listen more.

Remember that a good networker has two ears and one mouth and uses them accordingly. Our success in networking depends on how well we can listen and learn. The faster you and your networking partner learn what you need to know about each other, the faster you’ll establish a valuable relationship.

Collaborate and help others.

People don’t care how much you know until they know how much you care. Helping people shows that you care. Connect with people outside of business meetings whenever possible. Drop notes, letters and articles that might be of interest to them in the mail. Call to check in with them or invite them to events you may be attending that might be of interest.

You are potentially linked to a vast network beyond your own sphere. By implementing the tactics above, you will receive benefits from that network. Maximize your opportunities to cultivate networking relationships with others, and you will see just how effective word-of-mouth marketing can be!

11Oct2010

Expanding Your Overall Sphere of Influencestring(42) "Expanding Your Overall Sphere of Influence"

The foundation of any word-of-mouth marketing effort is people. Your sphere of influence represents the overall number of people with whom you network. These are people you know either very well or as casual acquaintances. To evaluate your sphere of influence, take inventory of the people you already know.

Surprisingly, many people have never established effective networking relationships with others they’ve known for a long time. Preparing your inventory is as simple as asking yourself, “Whom do I know?” or, “Who knows me?” This includes everyone with whom you interact or might interact with, personally or professionally:

Clients
Business associates
Vendors
Creditors
Employees
Friends
Family members
Others

Go through your software database, e-mail contacts, Rolodex, mobile phone contacts and business card collection. Discard the names of all people who have moved on or with whom you’ve lost touch. Analyze your relationships with the ones you feel are still current. Ask yourself, “How well do I know them?” Then determine whether each individual is a Strong Contact (a close associate with whom you will network actively) or a Casual Contact (an acquaintance with whom you will network passively).

Remember, the more people you network with actively, the greater your sphere of influence will be.

27Sep2010

Using the Power of Networking to Go Globalstring(42) "Using the Power of Networking to Go Global"

We now live in a fully global society, and referral networking has become a prominent marketing strategy in this global society for one reason: It works. The idea of growing your business through word-of-mouth marketing is a concept that crosses cultural, ethnic and political boundaries because we all speak the language of referrals, and we all want to do business based on trust.

Referral networking is a cost-effective way to get in front of new clients worldwide, and it’s a much better way to keep a business prosperous over the long term (because it’s built on mutually beneficial relationships between you and your fellow business owners). Referral networking is powered by the oldest and most enduring principle of human society–Givers Gain–the idea that the good you do will eventually come back to you in one form or another.

Earlier this year I did a live telebridge interview with my colleague Paul Martinelli on the topic “Going Global via the Power of Networking,” and we had more than 500 people call in from all over the world. To me, this truly demonstrates the worldwide interest there is in global business building through networking, and it’s a testament to the fact that networking will only become more vital to business success in modern times.

If you’d like to get in-depth advice on how to use the power of networking to go global with your business, you can Click here to get free access to the recording of the interview I did with Paul Martinelli on the subject.