PROVEN TACTICS
Over the years thousands of companies have demonstrated what really works to build
word-of-mouth marketing among satisfied customers. The following list
provides a summary of some of the most popular tactics that have been proven
to be successful. Not every tactic will apply with equal weight to your
enterprise. Some tactics are simple to use and others are more complex. It all
depends upon your situation. If you have a question about applying these and other
tactics, send us an Email.
If you have seen in action a tactic that you do not see listed here and you
want to share this information with others, use the form to submit
your ideas. You may submit as many ideas as you like. Information submitted
may be edited for form and content before posting. We are happy to give credit
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Tactic #1: Involvement
Tactic #2: Testimonials
Tactic #3: Work the Distribution Channels
Tactic #4: Tell True Stories
Tactic #5: Educate Champions
Tactic #6: Create Remarkable Pricing
Tactic #7: Benefit Development
Tactic #8: Use Advertising
Tactic #9: Service Excellence
Tactic #10: Fast Complaint Handling
Tactic #11: Pleasant Suprises
Tactic #12: Quality Improvement
Tactic #13: High Ethical Standards
Tactic #14: Staff Training
TACTIC #1: INVOLVEMENT
Involvement is one of the best ways to build word of mouth. Yet, strangely enough many companies are affraid to involve customers. They want customers to stay as far away as possible except for the purchase transaction. Companies who involve customers have learned that an educated consumer is one of their best advocates.
Involve your customers in the process of making or delivering your product or service. Involvement helps customers gain valuable information about the quality of your product / service. The personal experience creates positive feelings that are the force behind their talking about your enterprise.
Sure, you may have liability risks to keep in mind when you involve customers. However, even if you cannot allow customers on the production line of your factory, you can probably find ways to involve them. More ideas are in the book, but here are a few ideas as starters:
- Give tours (either live or video) of your production facility to the public, to distribution companies, to your marketing company, to champion customers.
- Let your customer select some features on your product or service before it is made for them.
- At the retail level give hands-on demonstrations of how your product / service works, how its chief benefit is a value to them, how it differs from the competition, etc.
- Educate customers how they can maintain the product / service after they purchase it.
- Let champion customers talk with selected suppliers so they can learn more about the value that you purchase and include in their product / service.
- Let champion customers participate on a product review panel to give you feedback about improvements you are making for their benefit.
- Give internet access or modem access to some step in the production or distribution process so customers can monitor the status of their purchase.
TACTIC #2: TESTIMONIALS
Testimonials are a silent sales force that you have more control (once you have them in your possession) over than other forms of word of mouth.
Testimonials are so powerful because they:
- Are in the words of consumers expressing consumer issues.
- Help a new customer visualize what it will be like for them if they try your product.
- Speak in terms that other customers understand and relate to easily.
- May, if offered by a carefully selected celebrity, provide a high-visibility recommendation.
Testimonials can be solicited and filed for later reference. If you solicit written testimonials, be sure to explain what you are doing and why.
Also, you can capture testimonials that
surface during typical transactions with customers. For example, if you hear a customer talking favorably
about your product or service to someone else, you can ask them for permission to quote them in your next newsletter,
your next advertisement, etc. Use a customer response form that contains a section that asks for this type
of feedback.
If you use testimonials, keep the following principles in mind:
- Secure permission from the individual before using the qotations.
- Use the testimonial in context. Refuse to twist the truth.
- Keep written testimonials on file incase someone wants to verify a source.
TACTIC #3: WORK THE DISTRIBUTION CHANNELS
Sales representatives, wholesalers, distributors, consultants,
academic leaders, industry experts and many more types of people
in your industry add to your reputation. Use their influence.
Give them the types of information that they love to relay to others.
Tell stories of successful customers. Give them information about
how you build quality into your work. Find ways to involve them,
to inspire them to talk about you. Remember that the things that
inspire your champion customers may be the same things that inspire
opinion leaders in your industry to talk about you. However, they
have their own interests apart from those of your champion customers.
For example, an industry information system consultation firm may
define quality in a way that is different from how retail customers
define quality.
TACTIC #4: TELL TRUE STORIES
Stories are the central vehicles for spreading reputations. Every
business owner should be on the constant hunt for stories that
illustrate the central pillars of the company's reputation. Stories
communicate on an emotional level that paid advertising is not
allowed by consumers. Stories are the most powerful method to
spread the meaning of quality, service, access, and price. Here are
a few ways to use stories to build word of mouth:
- Ask your staff to gather stories that illustrate what your
reputation means to customers.
- Tell stories at staff meetings so that your champion staff have
the details needed to spread these stories to others.
- Write the stories down and use them in brochures, newspaper
advertising, direct mail advertising, radio advertising, newsletters
and personal correspondence with customers.
- Train sales staff to tell stories in the process of closing the
sale.
TACTIC #5: EDUCATE CHAMPIONS
In order for champions to be effective in spreading your reputation,
they need information. Some multinational companies have found that
if they educate their champion customers about anything of interest, loyalty is increased, good will is generated, and word-of-mouth is spread. This is amazing but it seems to work. In other words, your company can pick any topic that is relevant to your champion customers and become the source of credible, up-to-date accurate information on that topic, even if it is apparently unrelated to what you sell, and you will build word-of-mouth. You may think that you should pick a topic that is related to what you sell. That is fine, but consumers are increasingly expecting this of companies. You surprise them in a positive way when you help them with knowledge in other areas, too.
Here are a few ideas, but use this list as simply a starter for your
own team to develop further:
- Conduct a opinion survey or series of focus groups of opinion
leaders to determine what topics are of most interest. You and your
senior management team should select one or two topics that you can
become known for.
- Pick any topic but the topics that are near to the core of
cultural expression, e.g., food, arts, tools, language, trade, etc.,
may be more important to champions.
- Choose an educational method that is cost efficient, one that
is appropriate to your business, and one that you can sustain over
time. This maybe simply a series of free seminars that you host
giving free information. Or, it may be a newsletter you start, a
weekly column in the local newspaper, point of purchase displays, or
an internet web site. Make a two to three year commitment to the
project.
TACTIC #6: CREATE REMARKABLE PRICING
You may be thinking: "I can't cut my pricing any lower than it is
now." Fine. But notice that I did not say create remarkable low pricing. Sure, word-of-mouth spreads when low prices hit the market. But word-of-mouth can be just as strong when a
company chooses the high price strategy to follow. Pricing involves
not only the cash price but also the terms of the exchange and the
perceived value that is gained in exchange for the price. People
don't talk about price as some theoretical construct of intrinsic
benefit. They talk about the price because of the value it
represents to themselves or their group. If you have a clearly
defined pricing policy, educate your champion customers regarding
the value they are getting. If the value is remarkable, the pricing
will be remarkable.
TACTIC #7: BENEFIT DEVELOPMENT
You probably have heard of the old advertising maxim: "Benefits
sell." True enough and it is benefits that are often the subject of
conversation. Benefits are most often the core of an enterprise's
reputation. Benefits communicate the meaning of a product, its
usefulness, its reliability, its over-all value. If you want to
build a reputation, never stop developing the benefits of your
products and services.
TACTIC #8: USE ADVERTISING
Advertising builds word-of-mouth most commonly in one of two
ways:
- By simulating word of mouth.
- By stimulating word of mouth.
Simulating word-of-mouth is a form of using the testimonial
to build trust. Stimulating word-of-mouth takes many
advertising forms including educating customers about who to ask
for advise, suggesting that customers seek opinions of others,
creative messages and images that spark spontaneous conversations,
etc. See Chapter 10 of the book for more
information on this tactic.
TACTIC #9: SERVICE EXCELLENCE
Most products these days are inseparable from the before-during-and-after-the-sale service that consumers expect. When the service is excellent, consumers talk about it to others. Look a these service quality characteristics as just the starting point when evaluating your service:
- Responsiveness
- Efficiency
- Flexibility
- Consistency
- Durability
- Convenience
- Simplicity
- Reliability
- Accessibility
- Security
Find out how important these and other characteristics are to your target consumers. Then find out how you perform on the most important ones. If you completed this type of analysis last year, do not assume that things are static. In fact, assume that consumer perceptions have changed to some degree and that what was important last year may not be as important this year and visa versa.
TACTIC #10: FAST COMPLAINT HANDLING
Speed is vital. Raw speed of response will do a lot to turn negative word of mouth into positive word of mouth if this speed is accompanied by fairness and honesty. In Chapter 5 of the book, I describe the five steps of complaint handling systems that will always work. Every employee who has the potential for interacting with customers should know these steps. You should have clear policies and procedures in place for handling complaints.
When you are faced with a complaint always ask yourself, "What can we do to send this customer away happy?" remember these bits of marketing truth:
- As the severity of the problem for the consumer increases, so does his or her tendency to engage in negative word of mouth.
- Opinion seekers assign more weight to negative word of mouth or service evaluations than they do to positive evaluations.
- Negative feelings customers have about your product or service occur in a moment, but these feelings may last for years if you do not address them immediately.
- Most customers do not want to confront your company about things that make them dissatisfied, since they believe that they will get no action or feedback. In addiition, to complain requires them to face their own feelings.
What can you do to make it easier for your customers to bring you their complaints?
TACTIC #11: PLEASANT SURPRISES
Consumers like being surprised when what they get is positive. Needless to say, they don't like the other
kinds of surprises. Here are a couple of ways to surprise customers:
- Add unexpected value to the transaction: value to the product, value to the transaction experience,
value to the service, value to the information about the product or service, unexpected valuable products or services. When you add a surprise
don't advertise it to the public. Just let word-of-mouth carry the information. Using paid advertising to alert
the public that there is a surprise waiting for them eliminates the surprise element.
- Add entertainment to the buying experience. Be careful here since some customers may not
want to spend the time "enjoying" the entertainment. So, make it optional. Theme parks have been using this
tactic for years by having mimes and clowns interact with the crowd waiting in line to get in to the
attraction. Fast food restaurants have tried this approach, too.
Carefully research your ideas for surprises to eliminate the risk of offending customers.
TACTIC #12: QUALITY IMPROVEMENT
We live in the quality improvement age. Consumers expect to see quality improvement. Other companies are
improving products and services and their own companies that they work for
are making a big deal out of it. People who know about quality improvement teams from work
understand how much effort is put into CQI. They know the kind of commitment that is needed to actually
make a difference.
More and more companies are beginning to show consumers
how and why their quality improvement benefits them. And, rightly so because consumers talk with one another
about the quality improvements they see in products and services. When you form "Continuous Quality Improvement" (CQI)
teams, make sure that you involve your champion customers in some way during the team's work:
- Gather data from champion customers relating to the types of problems they are having or the types of changes they
want to see in your products and services. Don't assume that you know customer expectations completely.
- Test quality improvement changes (either in reality or, at least, in concept form) with champion customers before final
implementation.
- Inform champion customers of the specific changes that you make showing why the changes were made and how
these changes will benefit them.
TACTIC #13: HIGH ETHICAL STANDARDS
This section is currently under development.
TACTIC #14: STAFF TRAINING
This section is currently under development.
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