A recent poll found that 82 percent of small businesses use word of mouth to grow their business, and that 15 percent rely almost exclusively on word of mouth.
However, what many entrepreneurs fail to recognize is that word of mouth rarely just happens.
They fall victim to the myth of "if we build it, they will come." Nothing could be further from the truth.
My favorite question to ask entrepreneurs who plan to use word of mouth is this: "What is a product or business that you, as a consumer, could not wait to talk about with friends, family and even strangers?"
Most of the time they start to squirm in their chairs, finally admitting that they can't remember a specific example. Spontaneous word of mouth is a rare event. Successful word-of-mouth promotion requires actively finding ways to motivate customers to talk about a business in a positive way.
Here are some of the most reliable ways to encourage it:
• Motivate customers to talk about you through excellence in customer service. Customer service is not what it used to be, so if you can create an exceptional experience people will tend to talk about it. The service must be consistent, genuine and enthusiastic.
• Create incentives to spread the word through a referral or thank-you program. Offer customers a future discount or send them a small thank-you gift, such as a gift card, for each new customer they send your way.
• Ask your customer to "sell" for you. There are certain businesses that the customers desperately want to see succeed. This most often happens when you fill a niche that has not been addressed in the market. In this case, ask your customers to spread the word. Let them know that you cannot succeed without their help bringing in new customers.
• Create a buzz campaign. It is possible to mimic word of mouth by getting friends, family and employees to actively create a "buzz" about your business. In effect, they try to prime the pump by word of mouth.
It is used quite often in the entertainment industry. Fan groups are actively enlisted to get the word out about an artist. A buzz campaign can also be done through a user group, who in exchange for free service can become a sales force for your business.
According to Robert Lambert, professor of marketing at Belmont University, "When a product is complex and difficult to evaluate, and when risk is involved in the buying process, consumers often look to others to provide strong word-of-mouth en dorse ments.
"This form of advertising can be more effective than any paid advertising. It has the added benefit of reducing the costs of attracting new customers" for the business owner.
Kevin Jennings, co-founder of soundAFX here in Nashville, describes the benefits of word of mouth for his sonic-branding company this way: "Word of mouth is an incredible way to market. The more people I meet, the more connections are formed.
"People know people who know people who know people. If you are good at what you do, people will refer you to others."
Although word of mouth is often considered free advertising, it is most effective when some time, energy, and even a few marketing dollars are committed to it.
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