Word of Mouth Part 1: Why
Wow, as I write this, there are 1,176 comments on the last post. And that’s not even counting the 200+ comments that were posted in the wrong place …
There are some amazing marketing insights in those comments, so browsing through them will give you a great education in marketing.
Now, anyone who knows me knows that I don’t really believe there’s a “right answer” to anything. Inflexible certainty is a dangerous state of mind – but it’s also an amazingly useful one when it’s applied to the right ideas.
Being certain that the earth is flat will probably cause you a lot of grief.
Being certain in your self-worth will probably make your voyage on planet earth a lot more pleasant.
Another thing I’d bank my certainty-chips on is the power of Word of Mouth Marketing.
There are many marketing truisms. Some of them I agree with – some I think are simply wrong.
“The single most powerful force in marketing is word of mouth” is one that just about every marketing expert I know agrees with. I do too, and here’s why.
Let’s compare it to some of the other answers given (which were almost all – by the way – quite insightful and well thought out).
Word of Mouth Vs. Great Ad Copy
Word of Mouth – the right kind of Word of Mouth (more on that later) – can bypass the copy and go right to the order.
If you and your beloved uncle have both been suffering from the same kind of back pain for the last 10 years and suddenly he is “cured” – I doubt you’ll need to read much ad copy before trying whatever it was that cured him.
That’s a gross simplification, but you get the idea.
Word of Mouth Vs. Selling to a Thirsty Crowd
Selling to a “thirsty crowd” is, in fact, an amazingly powerful way to generate sales. In fact, if you’re paying for advertising, it’s essential.
But to gain access to a thirsty crowd you will always have to invest something. Be it time, energy, or money (or all of the above), there is an investment there that you will have to keep paying over and over again. The burden on you is to make sure you get a “return” on that investment each and every time.
With Word of Mouth, your customers go out and find your Thirsty Crowd for you. You do have to make Word of Mouth investments (more about what they are later), but the payoff – when you do it right – will grow on itself.
Some people say “Word of Mouth is Free” but that’s not really true. Yes, you don’t have to pay for the referral, but there are other investments you must make in order to get that Word of Mouth referral.
When you find Thirsty Crowds you have a linear investment-to-payoff (or lack thereof) relationship.
When you let Word of Mouth find Thirsty Crowds for you, the investment keeps paying off again and again – sometimes “exponentially.”
But let’s be careful about using that word.
There are many gimmicky products out there that promise “exponential growth” but they don’t really deliver that at all.
More about that – and what actually does deliver exponential growth – in the following posts.
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Thanks Mark, for some simple and important knowledge bites. The way you write it makes it seem like common sense too.
Simon
Yes, Word-of-Mouth Marketing is far more powerful than a sales letter. But you first have to have a ‘relationship’ with the listeners who are ‘taking your word for it’. My relationship with you Mark (at this time) is student-to-teacher. You and I could promote exactly the same how-to-market online material and your name recognition alone would draw more sales for you. People recognize you as an authority, which gives your word credibility. They don’t know me and would probably pass on the product – even though the product is exactly the same. Now, if I added your name to my sales copy as a friend or business associate – this gives the buyer a way to relate to me. The buyer knows and respects you – they see that I know you too, Hey, we’re friends and I suddenly have instant credibility. My word is now valid. Therefore, I stand by the single most powerful force in marketing is: Relationship
If I were to pick one word to capture the most important force in marketing it would be “trust.” Word-of-mouth is a powerful way to communicate it. It is, maybe, the best way.
I look forward to learning how best to establish, maintain, and grow one’s trustworthiness.
I just want to thank you for Simpleology. It breaks things down so logically and makes them simple to understand. Word of mouth for example I majored in marketing in college so I know from experience the power of word of mouth but never really used it in my bussiness, after reading your article I know see the relationships and bonds that it builds. It makes it possible to sell more without trying to sell more. Thanks jimi
Hey Mark: funny i am reading this blog at this time. i am creating an e-book and guess what? i have highlighting simpleology in it and plan of getting big distribution when we release. i am writing about only the programs i have experienced first hand. so i am an example of WOM first hand for you. get a handful or a dozensful just like me and you have a big thing going on as you know.
A happy customer is the most single important force in marketing
Word of mouth advertising is the best sales tool I have. Nothing beats a referral from one of my past or current clients.
I think my best marketing tool is…ME! (I am not meaning this in a vain way, either) The more I can speak with people face-to-face, the more comfort is established, the more rapport…the more word of mouth referrals. I am enthusiastic, present with integrity and interest in the other person…I always work into a conversation “what I do” and this usually provokes conversation. Works for me!
Just answering Mark’s Question What is the Best form of Marketing….
Inspired Word of Mouth
Well written, and well said. Word of mouth marketing is a very effective way of making money. This is one are I intend on using on my big project which I am currently working on, its cheap and free and thats why we also need to ensure that we provide excellent customer service as this can lead to viral referrals.
Thanks once again for the write up
I’m afraid I’ve been commenting, every day, on the wrong blog…..Darn. Oh, well. Yes, personal referral is what I’ve always used. I teach Music Together to birth to 5 children and a parent; it’s a very different type of childhood class, not designed for parents at all. We support the children in their experimentation as neurons become connected when they respond to something during class that interests them. Before they have adult-type brains that’s how neurons connect and that’s how they learn. It’s a difficult class to explain so I don’t bother. Those who take the class, those who really “get it,” those on the same wave length as I tell friends, so I end up with adults in class who want that sort of ‘education” for their children. The other sort of advertising I’ve tried doesn’t attract people who are on that wave length, so I “reward” those who refer to me with money off their tuition and so far it’s worked pretty well.