What’s the Payoff for Developing an Effective Word-of-Mouth Strategy?
Developing an effective word-of-mouth strategy that results in a strong referral-based business takes endless time, energy, effort and, above all, commitment. The actions and steps necessary to create a successful referral-networking campaign are simple, yet far from easy; they take tremendous dedication and drive, and results can be a long time in coming.
So why should you put forth the time and effort to develop a word-of-mouth strategy for your business? Because, if you commit to doing it right and don’t give up, the payoff can be unbelievably high.
In fact, many businesses have become so adept at referral marketing that they get most of their sales through referrals and spend little or no money on advertising — and they never have to place cold calls. Some of these businesses hire most of their employees through referrals, manage complex financing arrangements and even procure necessary products through referral contacts they have cultivated for many years.
But a referral-based business can reward you in ways beyond those measured in dollars. Dealing with people you like and trust is a better way to live and work than sparring with strangers all day long. You may even find the relationships you form with your referral sources more important than the dollars your new customers bring you. Such relationships are central to both the referral-generation process and the satisfaction you derive from your work.
So, the next time you find yourself doubting whether your networking efforts are really worth it, remember: If you don’t give up, and you continually devote yourself to working on making your word-of-mouth strategy better and better, the payoff can be enormous both financially and in terms of happiness in business and life.
4 thoughts on “What’s the Payoff for Developing an Effective Word-of-Mouth Strategy?”
Ivan, I love the idea of referral marketing and definitely think it is worth all the effort. You raise such a great point about the added advantage of serving people you like and trust. From my experience, employees are also more motivated to go above and beyond when they’re serving customers they feel accountable to, especially those who keep coming back because they expect a certain level of excellence. The key, however, is to make sure no one starts taking the business for granted and keeps earning the right to serve long-term relationship customers.
To your career success!
Great words of encouragement. Patience is important in seeing the results from your marketing efforts.
Patience is the keyword here. It might even take one, two, three or more years. Does it work? You bet. I had a sub at my BNI meeting last week and still received three referrals via email the same day. Two were third level so people were talking about me! People like to deal with people they know, like and trust. How many times have you gone, out of your way, back to the same store or restaurant because ‘you like the people’ there? A lot of clients are personal friends which is, for the most part, good.