Harness the power of word-of-mouth marketing

Posted by Christina Lopez on September 7th, 2010

As a small business owner, you most likely relied on word-of-mouth when you were just starting out. Now that your business is growing, it’s even more important to pay attention to what’s being said about your business and where the conversation is taking place. Whether it’s a referral from a satisfied customer or comments on a review site like Yelp!, keeping your ears open to word-of-mouth can boost your marketing efforts.

Yahoo’s advertising division recently published a study on word-of-mouth (or WOM) and here are some of the findings:

  1. Most WOM is positive and happens face-to-face. Although advertisers fear negative WOM, research shows that 66 percent of brand references in WOM conversations are positive; just 8 percent are negative. Where do these conversations take place? Despite the explosion of social media online, 76 percent of WOM conversations still occur face-to-face.
  2. The Internet has become more influential in spurring WOM brand conversations. Within some categories – automotive, finance and health – the Internet surpasses even TV as the most influential media for learning about brands.
  3. Internet ads and corporate sites still drive the most WOM. And, surprisingly, chat rooms, blogs and social networking sites are mentioned least frequently in brand conversations. Internet ads and company websites lead the way in driving WOM conversations, even more so than review sites.

A lot of word-of-mouth can happen immediately following a sale (while your business is fresh in the customer’s mind). Here are some strategies that word-of-mouth marketing blog Gaspedal recommends:

Ask for a review. Honest reviews from satisfied customers are timeless, long-term assets. Capturing great reviews gives you referrals you can use on your website, in your brochures or on your Facebook wall long after the original sale.

Earn their e-mail. Get permission to contact your customers again by asking for their e-mail addresses. In return, offer them a free newsletter, send helpful tips on a regular basis, and keep them engaged with your business for the long term.

Follow up. Post-sale follow-up is not only a smart customer service move but can also result in great word-of-mouth. Follow up each sale with a simple call, e-mail or handwritten note to check in on your customers. When you follow up, be sure to tell them how much great word-of-mouth means to your business and how much you appreciate it.

Rieva Lesonsky is an Earn.com Expert Advisor! She is also CEO of GrowBiz Media, a content and consulting company that helps entrepreneurs start and grow their businesses. Follow Rieva at Twitter.com/Rieva, and visit SmallBizDaily.com to sign up for her free TrendCast reports.

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