Marketing ABCs

By Lana O'Halleran
Special to the Coastal Point

Talk may be cheap, but it sure is powerful.

What’s the first thing you do if you need a reputable auto mechanic, doctor or financial advisor? If you’re like most of us, you probably ask a friend or family member for his or her recommendation. A recommendation is perceived as far more credible than any other form of advertising or promotion.

I’m talking of course about word of mouth. Word of mouth is arguably the most powerful and cost-efficient marketing tool. Always has been. Always will be.

How can you harness word of mouth to promote your business? The key to successful word-of-mouth marketing is not to leave it to chance — make it happen. Think of it as a strategic marketing tool, like an advertisement in the newspaper or a radio commercial. Like any marketing tool, word of mouth is most effective when you plan for it and work on it.

What happens if you just let it happen? You might get lucky and find that your customers are saying great things about your business to lots of people. I say “lucky” because studies show that the people most likely to chat about your business are those who perceive that they’ve had a negative experience.

In fact, statistics indicate that a person who’s dissatisfied with his or her experience is likely to tell 10 to 12 people, while a person who’s happy will probably only tell about three people. So 10 unhappy customers could, in theory, cost you 100 potential customers while 10 happy customers might only bring in 30 new customers.

In other words, if you’re going to depend on word-of-mouth as a marketing tool, you had better make sure your customers are very happy and sharing their happiness with their friends and acquaintances in the form of a recommendation.

How? Make sure your customers have a positive experience every time they do business with you, and there’s a much greater chance that they will recommend you to others.

Don’t just meet customer expectations — consistently exceed customer expectations. Think of the old adage, “It’s the little things that count.” For example, a bakery might add a complimentary cookie with every purchase or a florist might include a single rose with every order. These aren’t advertised extras, they’re just little perks to consistently let customers know that you value them and their business.

There are myriad ways to encourage people to patronize and promote your business. The good news is that many of them are low-cost.

Set up a customer referral program so you can reward customers who send new customers to you. This could be as simple as offering a small discount for each referral. It’s a great way to recognize a customer’s effort and patronage without a big price tag.

Send an occasional thank-you note to loyal customers. It’s perhaps the most basic tactic of all but incredibly effective, because everyone likes to be thanked and made to feel special.

Develop partnerships with noncompetitive businesses to provide additional value to your customers and expand your reach. For instance, a bookstore might promote a new cookbook and offer a discount to the kitchen supply store with each purchase.

You might even consider an affinity program — making a donation of some sort to a cause that’s near and dear to your customers. Credit card companies have mastered using affinity marketing as a strong hook.

Regardless of the program you implement, it’s all rooted in demonstrating that you appreciate your customers, and that’s a very potent tool.

The key to successful word of mouth marketing is simple. Everybody wants to be treated well. Treat customers well, always surpass their expectations, let them know that you appreciate their patronage, and there’s a good chance that they spread the word.