personal referrals still rule. how they’re made has changed.
By Roy Harryman
Can you feel it?
The ground of marketing has shifted under our feet in only a few years. Entire industries (direct mail, traditional media, brick-and-mortar retail) have been affected by the digital transformation.
Everything is different. Or is it?
Delivery methods have changed. There’s been a massive shift from analog (paper, mail, broadcast) to digital communications. But marketing, at its core, remains the same:
People still want to do business with those they like and trust.
Customers still want good service.
When consumers are pleased, they tell others.
Those “others” often become customers, too.
Word of mouth still rules
Despite technological changes, the most effective advertising continues to be word of mouth. Every business owner I’ve spoken with confirms this is the case. Personal referrals remain golden.
What’s different today is how customers share the word about your business. Word of mouth used to mean literally that: one person audibly telling another about a reputable (or disreputable) business. This still happens. A lot. But the megaphone is much bigger now. Google Reviews and social media have made it possible for anyone to broadcast the good, bad and ugly about a business.
The plus: If you do a great job, more people than ever will know. The negative: The occasional mess-up can get blown out of proportion. In addition, cranks and trolls who never visited your business can trash you. Fortunately, even a negative review has a silver lining: You can wisely respond to a critique and show the world the kind of quality business owner you are.
Back to word of mouth. Without a strong digital presence, you won’t be referenced in the conversation. For example, it’s common for people to ask for vendor recommendations through social media. “Anyone know a good tree service? Plumber? Remodeler? Pediatrician?”
People are happy to respond to these queries and share service providers who have helped them. But if your business does not exist in the digital realm, or has a half-baked presence, it will hinder referrals.
Word of mouth: next gen
Whether in the 1980s or today, businesses want publicity that amplifies word of mouth and casts an even wider net. In the analog days, this meant convincing a journalist to write about you, paying the media to advertise or sending direct mail.
Although these options are still available (and are sometimes wise choices), businesses are no longer limited to them. Websites, podcasts, YouTube and blogging – just to name a few – connect you directly to consumers. Usually, there’s zero entry fee, or a minimal one, to establish a digital marketing presence. The gatekeepers of the media are still there, but their power and influence have waned.
It’s worth repeating that these tactics can’t replace word of mouth but can amplify it.
An extraordinary business gets people in the door with minimal publicity – word spreads naturally about good things. When you add marketing to the mix, you can reach an ever-growing number of prospects.
You’ve got a megaphone. So do your customers. It’s time to switch it on.
P.S. An old-school strategy that still works
Networking referral groups are gatherings of up to a few dozen people who meet regularly for the specific purpose of sharing business leads with one another. This laser-like focus distinguishes them from Chamber of Commerce and other business-related groups where networking is secondary. Networking groups avoid intra-discipline competition by limiting the representation in each trade to only one person. For example, there will only be one painting company in the group. Healthy, well-developed groups naturally refer leads they discover in the course of daily business life. A plumber, for example, may notice cracked drywall in a home and pass along a colleague’s business card to the homeowner. There are groups like this meeting in your community. Check them out.
P.S.S. A word on reviews
Customer reviews are valuable for providing objective third-party endorsements for your business. Many businesses, including mine, collect customer testimonials and place them on their website. This is a worthwhile practice. However, it’s not as valuable as using third-party review services such as Google, Yelp and others. Customers recognize these services as authoritative and use them as a barometer of whether to consider your business.
It’s not just the quality of ratings that matters, it’s the number. If a company has an average 5-star rating, but only has four reviewers, that’s not saying much. But if there are 500 reviews, that’s quite an accomplishment. Are digital reviews the new word-of-mouth? They’re certainly part of it. Start a habit of soliciting these reviews from customers and make it easy for them to respond. How can you do this? A few ideas:
Put a QR code in your store window or a link on your website.
Send an email with a link to the review page and invite customers to write about their experience.
Create a business card with a QR code linking to the review page.
Send a thank you card with a link and code.
Every positive response is golden. Make time in your schedule to facilitate customer reviews.
ABOUT ROY HARRYMAN
Roy Harryman is the author of “Small Business, Big Impact: A No-Nonsense Marketing Strategy For Companies That Do More With Less.” This post is excerpted from the book.