Growing Your Business by Word of Mouth

If you had to solely rely on word of mouth and referrals to grow your business, could you? Would you?

It depends on your word of mouth power, the factor from which you attribute new customer acquisition by recommendations from others. The ultimate test to measure your word of mouth power is to forecast the growth of your business through a single source — referrals. Would you miss your revenue target or exceed financial expectations?

Word of mouth (WOM) requires talkers. People who are willing to stake their reputation on telling others about you, your business and your value. Word of mouth marketing (WOMM) may be the most cost effective way for you to grow your business, if you have invested in creating an army of talkers. Talkers are promoters, followers, happy customers and raving fans.

WOM marketing and advertising is often advocated as free. This is simply not true. The outcome of word of mouth may be free from cost of sales. WOM requires a significant investment. An investment in resources that will carry your message forward. An investment of time educating others on the value of your products and services. An investment in exceeding customer, partner and employee expectations. Acquiring new customers may factually require a smaller investment than buying ads and cold calling; however, it is not investment free. You need to invest in your word of mouth strategy to make sure it really pays off.

You can invest in a WOM strategy by giving people a reason to talk and by continually asking others to talk about you and your business. Invest in WOM by giving people the proper tools to share your message. Talkers are your most valuable source for marketing, if they can speak from first hand experience. You can buy fans. Buying fans does not create loyalty or truth telling. The best talkers are those that trust you will deliver your value. They are someone who has found your solution to be worthy of sharing and promoting to others.

Knowing what others are saying about you and your business is measured by the amount of customers acquired through word of mouth.  If no one is referred to you by WOM, that is a danger sign. People are not telling others about your value. A bigger red flag might translate to a reputation problem.  When is the last time you asked your fans, customers or employees to spread the word? Are they enthused to get the word out or hesitant to refer others to your business?

People talk about what they like, what they trust and what they value.  All of these are earned markers of success in business. You earn them by doing a great job and exceeding expectations. The markers are currency. A currency that is transferred by word of mouth referrals. Start by setting your marker to do great work and then ask people to start talking. When they start talking, you have power. You have the power to win new customers by word of mouth.

“I would rather earn 1% off a 100 people’s efforts than 100% of my own efforts.”  J. Paul Getty

Jamie Glass, Founder, President and CMO of Artful Thinkers

Manage Your Influencers for Optimal Results

Key influencers play a critical role in every business. Decision makers are guarded and guided by inside and outside advisors and gatekeepers. How you manage your trusted advisors can help or harm your business.

Influencers know they have the power to change or compel action. It is the business leaders responsibility to validate and control the effect of influencers. Those who sit closest to authority and are granted permission to persuade, have a direct impact on your success. Do you know who is currently sitting at your table of influence?

In order to responsibly manage your influencers, take time to identify those that are in your inner circle and those effecting your judgement. Inside your business look at department heads, executives and even top revenue generators whose opinions impact your future.  Who are your squeaky wheels? Are they helping you make better decisions for your business or slowing down how you operate?  Influencers can be carriers of good and bad advice, they may be motivated by selfishness. It is up to you to vet, challenge and manage your influencers for optimal results.

One way of evaluating an influencer is to ask them what they believe are your highest priorities. Are they up-to-date on your current business plans and growth strategies?  Do they know the profile of your most profitable customers?  If not, it is the perfect opportunity to align your thinking. Define and clarify what is most important to you and your business.  Let them know how they can help you.

To get the best results from your influencers, provide regular updates on business goals, initiatives, challenges and opportunities.  Acting as gatekeepers, key influencers can open doors to new ideas, solution providers and even make introductions to customers. They also have the ability to close doors.  As the final decision maker, you are ultimately responsible for those that make it through the “gate”.  Challenge those that have the authority inside your business to say no.  Know who they turned away and why.

Update your outside advisors quarterly about key initiatives and strategic objectives. These influencers, such as accountants, legal counsel, wealth managers, business consultants and top vendors are connected and often sources for essential referrals. They act as a conduit for information and potential services that can help you achieve your goals.  If your influencers know your interests, they can better serve you.

Know that influencers get things done. They effect change. They make things happen. You need to know who they are and leverage them for maximum impact to your business. Lead influencers to your expected outcomes. Manage them for the best results.

Jamie Glass, Outsourced CMO and President of Artful Thinkers, a strategic sales and marketing consulting company and Sales & Marketing Services Managing Director at CKS Advisors.