SYNOPSIS IN POINT FORM

• Word of mouth should always work in your favour – it is a normal and expected aspect
• If it is working against you, then you need to urgently analyse what is going wrong
• It is a great misconception that with frequent recommendation, advertising is not necessary
• On the contrary, advertising will only work if you are being recommended
• Each new client acquired will draw in many new ones for you
• Analyse who, why, how and when you are being effectively recommended
• Direct your marketing spend in this exact direction, which will render much better results
• Reward client referral with real incentives
• Thank clients for referring you
• Formulate group purchasing advantages, encouraging further recommendation

FULL ARTICLE

Word of mouth, or recommendation, should not be something you are particularly proud of and boast about, with regards to your business. It is about as normal and to be expected as any other regular feature of your business, and perhaps akin to boasting that you do not cheat your customers.

If people who know you do not recommend you, then there is something drastically wrong with what you are doing. So don’t make it sound like it is something out of the ordinary. It is in fact the most normal and typical way that all businesses grow and evolve.

With this in mind, it becomes very obvious that those entrepreneurs who say that marketing and advertising is not important for them, as they depend on recommendation, are totally missing the point.

I would, without a shadow of a doubt, go as far as saying that the complete opposite is true. it is only when word of mouth and recommendation is working in your favour, that you should engage in advertising.

Why? Most simply because each new client that you acquire through often costly advertising, will in all circumstances in turn refer new clients to you, thereby resulting in a snowball effect. This is when advertising really works, and not when word of mouth is working against you. In this case, the new occasional client obtained, will quickly move away, without pulling in others for you, thus resulting in a waste of money and resources.

On the other hand, if your advertising does result in word of mouth working in your favour, each Euro spent will generate great returns, not so much through the actual advertising itself, but from the ensuing client recommendation.

It is therefore a big misconception that such businesses do not require advertising. It is in fact they and only them who always receive by far the biggest benefits.

There are also other methods through which you can further multiply your takings from your advertising campaigns, within the scope of this scenario.

As people are recommending you, do your very best to analyse exactly who these people are, and which segment of your business they mainly recommend. Find out why, when and how they recommend you, and then do your best to focus your advertising in this specific direction. Let us say that you have various activities all combined under the same umbrella, but that you seem to be recommended mainly for one of them. And say that this recommendation usually comes when offering a certain variant of this activity, by a certain type of individual, and it is mainly based on a specific quality and aspect of your operation. This could be regarding price, value for money, quality, style, customer care, after-sales, or any other specific aspect of your business.

In this case therefore, try to direct much of your advertising specifically toward this exact target, which you know will definitely generate a lot of recommendation, rather than spreading it around finely amongst your entire audience.

Other ways of capitalising on client recommendation is to reward clients passing on the good word, by incentivising them in various ways. You may otherwise reward group purchases when your clients combine their orders with those of their own friends and contacts.

Even simply asking new clients who recommended them, and getting back to the original client to thank them, will go a very long way in encouraging them to continue doing so, as well as to greatly strengthen their loyalty towards you and your brand.

Word of mouth is by far the most effective and powerful way of promoting your business, and above all it is free. Once you know that it is working in your favour, then you can start advertising – but not before.