Word of Mouth

Why word of mouth doesn't happen

Sometimes, what you do is done as well as it can be done. It's a service that people truly love, or a product they can't live without. You're doing everything right, but it's not remarkable, at least not in the sense of "worth making a remark about."

What's up with that?

Here's a smorgasbørd of reasons:

  1. It's embarrassing to talk about. That's why VD screening, no matter how well done, rarely turns into a viral [ahem] success.
  2. There's no easy way to bring it up. This is similar to number 1, but involves opportunity. It's easy to bring up, "hey, where'd you get that ring tone?" because the ring tone just interrupted everyone. It's a lot harder to bring up the fact that you just got a massage.
  3. It might not feel cutting edge enough for your crowd. So, it's not the thing that's embarrassing, it's the fact they you just found out about it. Don't bring up your brand new Tivo with your friends from MIT. They'll sneer at you.
  4. On a related front, it might feel too popular to profitably sneeze about. Sometimes bloggers hesitate to post on a popular source or topic because they worry they'll seem lazy.
  5. You might like the exclusivity. If you have no trouble getting into a great restaurant or a wonderful club, perhaps you won't tell the masses because you're selfish...
  6. You might want to keep worlds from colliding. Some kids, for example, like the idea of being the only kid from their school at the summer camp they go to. They get to have two personalities, be two people, keep things separate.
  7. You might feel manipulated. Plenty of hip kids were happy to talk about Converse, but once big, bad Nike got involved, it felt different. Almost like they were being used.
  8. You might worry about your taste. Recommending a wine really strongly takes guts, because maybe, just maybe, your friends will hate the wine and think you tasteless.
  9. There are probably ten other big reasons, but they all lead to the same conclusions:

First, understand that people talk about you (or not talk about you) because of how it makes them feel, not how it makes you feel.

Second, if you're going to build a business around word of mouth, better not have these things working against you.

Third, if you do, it may be a smart strategy to work directly to overcome them. That probably means changing the fundamental DNA of your experience and the story you tell to your users. "If you like us, tell your friends," might feel like a fine start, but it's certainly not going to get you there.

What will change the game is actually changing the game. Changing the experience of talking about you so fundamentally that people will choose to do it.

If you are not regularly staying in touch with your customers someone else will. How do you stay in touch? Learn more

5 things you need to know about women and word of mouth

Wondering how word of mouth works when marketing to women?

We asked Michele Miller, co-author of the new book "The Soccer Mom Myth: Today's Female Consumer: Who She Really Is, Why She Really Buys" to share five tips for understanding word of mouth and women.

Do women and men differ in they way make recommendations or share information?
Women are three times more likely to share personal stories with a friend than men. Ask any woman how she found her hairdresser, doctor, or favorite wine, and she is likely to tell you that it was from a friend. Women are natural word of mouth spreaders. They are wired that way – with four times as many connections between the left and right hemispheres of the brain, women tap deeply into that area that is responsible for bonding and connecting with others.

What can you do to make increase women’s word of mouth?
Here’s the wrong way to do it: “Sign up three friends and we’ll give you a 15% discount.”  This feels like you are asking her to sell out her friends. Instead, change the offer to “You and every one of your friends who signs up will get a 15% discount.”   Now she has special access to a discount that she can pass along to friends. You’ve made her the hero. She can offer value to her trusted network.  She has just increased her trust and standing.

What about asking women for referrals; good idea, or bad idea?
This is tricky.  Because women are such great referrers, it seems logical. If you are doing business with her, and she values your relationship, it may seem perfectly acceptable to ask her for a list of friends who might benefit from your services. But that may not be a good idea, even if she thinks you’re the best thing since Starbuck’s drive-thru. She is the gatekeeper of her relationships. She’s not being stingy, she’s being protective. A better idea might be to give her a few of your business cards and say, “if you know of anyone who might benefit from my service, feel free to give them my card.”

If women talk more than men, how do we avoid bad word of mouth from them? 
The “duh” answer is, meet or exceed expectations. The other answer is, communicate clearly and often. If something goes wrong, explain to her exactly why, then do your best to make amends.  Basic, fundamental communication can go very far to deflect bad word of mouth.

How can you delight women?
Give her the personal touch.  It does not have to be fancy or extravagant (though that’s always appreciated).  A personal thank you note mailed the old-fashioned way may be enough to get her attention and touch her heart.  Remember her kids’ names, and even more importantly, the names of her pets.  Give her a gift she can pass along to family members. A financial advisor for my friend Holly knows Holly has two dogs. Every visit, he sends Holly home with two dog biscuits. He even knows their favorite – Snausages. Holly likes his work but what really endears him to her are the Snausages. It’s a personal touch that makes life better for those she loves.

Interested in a free copy of Michele's book?  Go to the Society forWord of Mouth (registration is free) and add a comment expressing yourinterest to this forum post.Deadline for the book giveaway is Friday May 16 at 5 pm CDT. We'llgive 5  copies away (to be drawn randomly).

More happy customers. More repeat sales. More referrals. Learn more

The Negative Impact of Word-of-Mouth

The Negative Impact of Word-of-Mouth

I listened to a story on NPR this afternoon about the negative impact of bad word-of-mouth, you can listen to it here. Very scary. This is part one of a two part story by Wendy Kaufman, hopefully the second part will bring out the positive aspects from good word-of-mouth.

The basis for the article comes from research by the Wharton School of Business. They found that 1 out of 2 customers has a customer service problem when they shop. Worse is the fact that they then tell friends, family, and colleagues about it and embellish the story in the retelling. The overall result is that 1/2 of those that hear the bad news story won't shop at those places they heard about. Ouch! Those that improve on the situation certainly create a business advantage.

It goes to show the need for businesses to hear from their customers, the bad news as well as the good. Hearing the bad news you can make efforts to correct the situation so that bad embellished stories won't be spread. You even have the opportunity to turn a detractor into a promoter. You can also get to the root cause and fix it to reduce future bad experiences.

Promoterz is the hands-free, word-of-mouth marketing service that takes care of the details so you can focus on business. Learn more

One More Chapter in a Great Story

One More Chapter in a Great Story

About six months ago I wrote about a small, bricks and mortar business that had successfully implemented and was enjoying the fruits of an online system that increased word-of-mouth marketing for their business. You can read the original post here. In a nutshell, the business is a haircut salon for men--a Sportclips franchise to be exact. The owners, Chuck and Joan Matheny, were using Promoterz to 1) Collect feedback from their customers, 2) Establish an "opt-in" email relationship through which they could communicate directly with their customers, and 3) Give their customers an easy way to tell their friends about their store. Top line result: more than a 20% increase in revenue.

Here is a new chapter in their saga:

Corporate SportClips introduced and has been encouraging franchisees to promote a "Season Ticket" concept. Customers willing to pay for six haircuts in advance get a free upgrade to MVP service on each of those haircuts (MVP includes a hot towel and shoulder massage among other things). Because several hundred of the Matheny's customers have asked to receive updates about the store by email, promoting the Season Ticket with an email seemed like a natural. Think about the value of Chuck's email list: because he had reached out to his customers and provided a way for them to opt-in, he could now communicate with those that wanted to hear from him directly and at absolutely no cost. He didn't have to wait for them to come into the store or pay for an expensive ad.

Rather than just encouraging the customers to come in to a store and ask for a Season Pass, we decided to put the technology to the test and offer the customers a quick and simple way to buy the card directly online. The email included a "one-click" buy button. Customers could opt to have the card mailed to them or come into the store and pick it up. The test has been a great success. Several customers have purchased online and the orders continue to come in. Cha-ching! A new online revenue stream for a bricks and mortar business.

Small test--significant implications. Here is a small "old industry/bricks and mortar" business that has figured out a way to use the internet--not as a glorified yellow-pages ad, but as a tool to generate new revenue streams, increase repeat customer visits and collect new leads--all of which have a direct impact on the top and bottom lines.

The real "no-brainer?" The Matheny's used Promoterz to do all of this. The cost: $50 per month per store.

Get customer feedback, generate referrals, and increase repeat sales for as little as $50 a month. Learn more

Self-Multiplying Customers!

Self-Multiplying Customers!

I received a newsletter today from the folks at Nova Mind. Nova Mind makes a great mindmapping application that I use quite a bit. They also have a project management package for the Mac that looks good. I have yet to give it a try. Anyway, one of the lines in their newsletter caught my attention:

We often find that there is a single license sold in a particular place, and then within a couple of weeks there is a huge cluster of licenses sold within that same area, and we would like to thank all of you who think of your friends and associates now and recommend NovaMind to them.

What a beautiful thing! Isn't that what we all want? Self-multiplying customers! Nova Mind has some great products. They work well and have a significant impact on your productivity. It is hard not to talk about them (ask Joe and Dan how many mindmaps they have seen from me).

As we all know, in today's chaotic marketplace new customers are hard to get. Once you get them, it makes a whole lot of sense to not only keep them, but keep them so happy they multiply.

Need some help? See our sponsor Promoterz

The average American consumer discusses brands 56 times a week. Are they discussing yours? Learn more
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