Word-of-Mouth Advertising

Definition:

An unpaid form of promotion in which satisfied customers tell other people how much they like a business, product or service

Word-of-mouth advertising is important for every business, aseach happy customer can steer dozens of new ones your way. And it’sone of the most credible forms of advertising because a person putstheir reputation on the line every time they make a recommendationand that person has nothing to gain but the appreciation of thosewho are listening. What are you doing to make sure your potentialambassadors feel confident enough in your business to recommend it?What are you doing to trigger word-of-mouth?

Here are some tips to help you generate word-of-mouth:

Word-of-mouth is triggered when a customer experiencessomething far beyond what was expected. Slightly exceedingtheir expectations just won’t do it. You’ve got to go above andbeyond the call of duty if you want your customers to talk aboutyou.

Don’t depend on your staff to trigger word-of-mouth bydelivering “exceptional customer experience.” Good customerservice is sporadic, even in the best establishments. The customerwho receives exceptional service today can’t be sure their friendswill receive the same tomorrow, so even the most well-served areunlikely to put their necks on the line and make a recommendation.Deep down, customers know service comes from an individual, notfrom an establishment. And even the best people have bad days.

Physical, nonverbal statements are the most dependable intriggering word-of-mouth. These statements can bearchitectural, kinetic or generous, but they must go far beyond theboundaries of what’s normal. If you don’t want to be average, whydo you insist on being normal? Here are some examples of thesestatements:

  • Architectural. The piano store that lookslike a huge piano, with black and white keys forming the longawning over the long front porch. The erupting volcano outside theMirage in Las Vegas. A glass-bottom floor that allows customers tosee what’s happening on the floor below them. Do you remember whenMcDonalds began building attached playgrounds to all theirrestaurants? It’s worked like magic for more than 20 years.
  • Kinetic. The tossing of fresh fish from oneemployee to another at Pike Place Market in Seattle. The magical,twirling knives of the tableside chefs at Benihana. Kissing thecodfish when you get “screeched in” at any pub in Newfoundland. (Ascreech is a loud and funny ceremony during whichnon-Newfoundlanders down a shot of cheap rum, repeat some phrasesin the local dialect and kiss a codfish. Everyone who visits thatwonderful island returns home with a story of being “screechedin.”) While it may at first seem like a kinetic word-of-mouthtrigger is a violation of #2 above, “Don’t depend on yourstaff…,” it’s really not. A kinetic word-of-mouth trigger isconstantly observable by management. It isn’t a “customer service”experience delivered privately, one on one.
  • Generous. Are you willing to become knownas the restaurant that allows its guests to select–at nocharge–their choice of desserts from an expensive dessert menu?You can cover the hard cost of it in the prices of your entrees anddrinks. Flour, butter and sugar are cheap advertising. Are you thejewelry store that’s willing to become known for replacing watchbatteries at no charge, even when the customer hasn’t purchasedanything and didn’t buy the watch from your store? Word willspread. And watch batteries cost less than any type ofadvertising.

Architectural, kinetic, generous: These are the flour, butterand sugar of effective word-of-mouth. Will you put these richingredients into the mouths of your potential word-of-mouthambassadors?

Budget to deliver the experience that will triggerword-of-mouth. Sometimes your word-of-mouth budget will beincremental, so that its cost is tied to your customer count. Othertimes it’ll require a capital investment, so that repayment willhave to be withheld from your advertising budget over a period ofyears. The greatest danger isn’t in overspending but in underspending. Under spending on a word-of-mouth trigger is like buyinga ticket that only takes you halfway to Europe.

Don’t promise it in your ads. Although it’s tempting topromise the thing you’re counting on to trigger word-of-mouth,these promises will only eliminate the possibility of yourcustomers becoming your ambassadors. Why would a customer repeatwhat you say about yourself in your ads? You must allow yourcustomers to deliver the good news. Don’t rob your ambassadors oftheir moment in the sun.