How to generate word-of-mouth.

In episode 79 of Small Business Big Marketing I asked a number of small business owners what their most effective marketing strategy was. All of them answered  “word-of-mouth marketing, of course!”

But (and it’s a big BUT) you don’t just wake up one day and say I’m going to generate some word-of-mouth.

Word-of-mouth marketing requires work … and there are certain things you can do to ensure it actually happens.

That’s where long-time listener, first time emailer to the show Curtis Crawford from Alert Alarm Company stepped in with his 7 ways to generate word-of-mouth in business:

Hey Tim …

I noticed that the small business owners you interviewed all said ‘word of mouth’ but didn’t really know what or how to cultivate it (the photographer being the exception) I don’t think that this is well known and most business owners are ‘just waiting for rain’ so to speak.

  1. Be referable – do good work, show up and smell good (I added the last one from the episode) and be memorable for something (good).
  2. Stay in front of your customers – I send out a hard copy newsletter quarterly through the mail.  while i don’t get very good intimidate response, it has really helped me connect with my customers,  become more than just the ‘alarm guy’ but a trusted adviser that stays connected.  I do know that 2 sales are directly because of the newsletter.  The lifetime value of those 2 will pay the cost of the newsletter printing and postage for YEARS…
  3. Make sure your customers know what you do and why you are better – the newsletter helps a lot with spreading this message.
  4. Send small tokens of appreciation for the referral – I send a thank-you card with a scratch-off lottery ticket in them.  The tickets are available in most states here in the US, cost $1-5 and add a little more to the thank you.
  5. Send a thank you for the sale – i send cash or gift certificates (not for my business, but for restaurants or movies, etc, unrelated to this business) to the referral source with a nice thank you card.
  6. Ask for referrals – if the product/service is good. then people are glad to tell their friends and contacts about you.  all it takes is just a little question “do you know someone else who could use _____?”
  7. Make it a system and name it – it just makes it that much more real and if you have employees, then you can offload a lot of the legwork.

Anyhow, that has been eating at me since I listened to the episode and just wanted to make sure I got it out so maybe it can help others.

Stay Secure!
Curtis Crawford

So, do you agree? How do you generate word-of-mouth for your business? Add your idea in the comments section below.

8 thoughts on “How to generate word-of-mouth.”

  1. Classic marketing idea. Word-of-mouth is very effective. On a negative note though, people tend to talk about your business when they are unhappy than when they are satisfied. If the service is good, the “negative” word-of-mouth can be avoided or reduced.

  2. Classic marketing idea. Word-of-mouth is very effective. On a negative note though, people tend to talk about your business when they are unhappy than when they are satisfied. If the service is good, the “negative” word-of-mouth can be avoided or reduced.

  3. As a marketer who specialises in small business I often get customers or potential customers telling me that they don’t need marketing as they have grown though word of mouth.

    Of course thats great. I explain that the word of mouth happens because they actually have some of their marketing elements in place and working for them. I get the odd quizzical look until we run through an initial consultation.

    Word of mouth is an excellent way to grow a business. My business grew like that too. However if you really want to step things up a gear you should try and think outside the ‘mouth’.

    I also try to explain that Word of mouth is like a patch of grass slowly growing across your back yard. Marketing is thinking about the areas you want to grow, seeding them, watering them and nurturing them and then asking them if they enjoyed the experience.

  4. As a marketer who specialises in small business I often get customers or potential customers telling me that they don’t need marketing as they have grown though word of mouth.

    Of course thats great. I explain that the word of mouth happens because they actually have some of their marketing elements in place and working for them. I get the odd quizzical look until we run through an initial consultation.

    Word of mouth is an excellent way to grow a business. My business grew like that too. However if you really want to step things up a gear you should try and think outside the ‘mouth’.

    I also try to explain that Word of mouth is like a patch of grass slowly growing across your back yard. Marketing is thinking about the areas you want to grow, seeding them, watering them and nurturing them and then asking them if they enjoyed the experience.

  5. Hail To The Nihilist

    With a review site for ANYTHING nowadays, it’s really important to avoid negative word-of-mouth at all costs. I’ve had a few bad experiences of late where people thought I was being silly and it was pointless for me to take to these review sites, but when they are the first things that people go to before using that service / product, it’s absolutely powerful.

  6. Hail To The Nihilist

    With a review site for ANYTHING nowadays, it’s really important to avoid negative word-of-mouth at all costs. I’ve had a few bad experiences of late where people thought I was being silly and it was pointless for me to take to these review sites, but when they are the first things that people go to before using that service / product, it’s absolutely powerful.

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