Word of Mouth doesn't cost anything and most importantly of all – it works. Recommendations are like gold dust to small firms in search of new business. So what do you need to do to increase the chances that your customers recommend you to people they know?
"In the past 15 years, word of mouth marketing has grown massively," notes Steve Barton of the Word of Mouth Marketing Association UK. "About 92 per cent of consumers rate word of mouth as the best source of information — a significant jump from 67 per cent in 1977 [source: NOP World]. And they are five times more likely to be influenced by friends and family than they are by an advert."
According to Barton, we're each bombarded by about 3,000 messages a day. “We can't process them all, we look for shortcuts — including quality endorsements from those around us. That's why word of mouth is so powerful — so vital to marketing."
Offline and online rules
Barton says social media isn’t the only place that matters. Far from it. "Most word of mouth conversations take place offline — 71 per cent is face-to-face; 21 per cent over the phone; only 8 per cent online. People might get a lot of information online, but they talk about — and endorse it — offline, at home, work or in pubs, cafés, restaurants, at the butchers or newsagents.
“Businesses still need to focus on online conversations, of course. You should have a business Facebook page and add a button to your website so people can 'Like' you. You should join LinkedIn and have a Twitter account. But what you're trying to do is influence offline conversations and you need to target ‘the influencers' — people whose opinions really influence others. Find out what conversations they're having and get involved in a meaningful way. You can use forums, newsletters and emails to try to 'seed' conversations, but you must be authentic and ethical — and pick a story people are interested in."
Not for sale
You can even get non-customers talking about you, which sparks conversation with people who become your customers. As Barton recalls: "Once I worked with a firm that did loft conversions and extensions. We had signs made that looked like 'For Sale' signs, but in fact they said 'Not For Sale'. It got tongues wagging and generated many enquiries."
Barton advises against offering customers financial incentives to recommend you ("It can undermine both the recommendation and your credibility"). "And if, say someone justifiably criticises your business online — put it right immediately and let people know you've put it right on the very same website. Even correcting your mistakes can lead to positive word of mouth."
Word Up
One tradesman who is aware of the power of word of mouth is Nigel Farrant (pictured right), owner-manager of Carshalton-based Farrants Flooring. "I get enquiries from various sources, including my website and Checkatrade.com, but 70 per cent of jobs I do come from word of mouth. People believe those they trust. The great thing is, it doesn't cost anything and carries more weight than adverts and leaflets."
To encourage customers to say good things, you must exceed their expectations at every step. From answering their initial enquiry to showing them samples, measuring up and providing a quote. Then there's actually doing the job, of course!
Little things mean a lot, such as not leaving any mess and making sure people's furniture is moved around safely and go go out of your way to make sure customers get the exact job they want, even if it makes your life more difficult. The customer always comes first.
Added extras
Customers must believe they are getting good value for money so throw in little extras for free, for example, if a door is sticking and you have the skills and tools to fix it quickly. It saves people money and hassle. It’s also important to be polite and friendly, because that influences what customers think about you.
Make sure customers are happy before you leave. If they have any concerns after you've gone, come back to sort it out.
More so than ever you need to keep a close eye on what people say about business online and working with your local 'BestOf' business can help you manage your on and offline reputation much more closely. Materials are provided to help a business collect those all important reviews and adding the the reviews to your online 'BestOf' web feature helps your business get found in the search engines for your local area. Finally getting the endorsement of your local 'BestOf' on Social Media platforms helps to give any business using word of mouth a valuable head start.