7 Ways to Stimulate Word-of-Mouth Advertising

Often when discussing what advertising or marketing tools a small business employs, we hear the response,  “We use word-of-mouth.”  When we ask that business owner or manager, “Do you know seven ways to stimulate or improve word-of-mouth business?” they give us a blank look, as though, “It never occurred to me that I could stimulate word-of-mouth.”

 That is a tragic mistake! 

Unfortunately those business owners or managers are too busy working “in” their businesses to work “on” their businesses.  We have seen owners and managers ride businesses into bankruptcy when they had all the tools staring them in the face to make their businesses very successful.  They simply never looked up and recognized their customers and concerned themselves with understanding those customers’ needs and wants well enough to make their own businesses successful rather than bankrupt.

When we tell business owners or managers that they can use these simple techniques to double their business in a year or less, they often scoff.  Yet it is not unrealistic to expect they will produce even a three-fold or greater increase in business in the same period of time, IF these techniques are done consistently and with a plan.

In addition to doing an excellent job with excellent customer service, you need to continue building the relationship with your customers by strengthening the “affinity bond.”  You develop the affinity bond with each contact.  YOU contact them multiple times.  In that process, your customers come to know you better AND to trust you more.  You must not wait until they decide to return to you to buy more when you can improve your relationship with them while stimulating their desire to purchase your goods and services unilaterally.

“Your list is everything!”  These are the people who have already established a relationship with you.  They have bought from you, inquired about your products or services, or merely asked you for some information or help.  Since they have begun the relationship process, it is very important that you continue it!

Understand the “lifetime (or residual) value” of your customers.  In other words, once a person has purchased goods or services from you, how long does he or she remain a customer (in years) and what are his or her total purchase amounts during that time?

This is extremely valuable information and a method of analyzing your business you should never fail to implement.  With this insight into your business, you will better understand just how important it is to maintain contact with your customers.

1. Send each of your customers a personalized thank you note—the first time you do business with them AND on every subsequent sale or service.  Many business owners will say, “That is too many notes for my business.”  While that may be true for multiple sales of low-cost items—the rare business—it is the very unusual business for which this strategy is NOT appropriate.

After all, how often does any of the people from whom you purchase goods or services send you a personalized thank you note?  I would venture to say “rarely” or “never.” 

2. Continue to make contact with your customers several times a year to thank them, remind them that you are still around, and that you still do whatever it is that you do.  It is especially productive to do this around Thanksgiving and the Christmas Holidays and the New Year—any or all. 
3. Learn the birthdays and anniversaries of your customers and send them cards commemorating those special dates. 
4. Ask for your customers’ opinions.  People always feel a greater affinity with you, IF they have been able to offer you an opinion about your goods or services.  They have “bought into your business,” so to speak.  They have invested in it, and therefore, feel more a part of it.

In return, offer them some small favor for their opinion.  That could be a coupon for a discount on their current purchase or a purchase on their next visit.  This is in appreciation of their willingness to give their opinions.

Of course, you are also wise to publish their opinions to show how much you appreciate them and then implement them where appropriate.  HOWEVER, be sure you ask and receive their permission to publish and use their suggestions giving credit where appropriate.

5. Offer coupons/bonuses for referrals.  If you have served your customers well, they will likely be very willing to refer other people including friends and family members to you, IF you give them the suggestion that they do so AND offer a small bonus to them and the people whom they refer to you.

There are several ways to get referrals.  One is to send them some of your business cards, say five, with a code on them that identifies the customer from whom they have come.

When the referral brings in that card, he or she gets a special bonus or discount, AND the referring customer gets one also.  IF the bonus or discount is appealing enough, your customers will LOVE to pass out these cards.

If you know the lifetime value of your customers, it is easy to understand how you can afford to be generous with both the referring customer and the new customer.

6. For many businesses it is very useful to have business card drawings.  This can be done with a card bowl in the retail place of business or simply putting your spreadsheet of customers for one to be randomly selected.

The biggest mistake businesses which collect cards make, e.g., a restaurant, is that they hold the drawing, and then, throw away the entire bowl of cards.  This is a tragic waste of a very well qualified list!  These people contributing their business cards are giving you permission to begin the relationship process—the affinity bond building process.

It is not wise to squander that opportunity!

7. Be generous with occasional small “just because you are our valued customer/client/etc.” gifts.  Some ideas include flowers, gift cards for the local coffee shop, gift cards for local restaurants, or even WalMart cards depending on your customer base and the amount of business they represent to you. 

Of course, these can be a part of your Thanksgiving or Holiday “thank you” mailings.

Again, if you understand the lifetime value of your customers, you will understand that you can afford to be generous with these gifts.

Does this work?  You bet it does!  But . . . only if you do it and do so consistently.  You must remind your customers that you exist and that you do truly appreciate them.

To your business success!

Paul Elliott
Marketing With Unbelievable Guarantees!™
http://www.MarketingSuccessBlueprint.com/blog

© 2008, Paul Elliott, All rights reserved world wide.