Word-of-mouth (WOM) marketing is arguably the most powerful way to market your product or services. When customers talk favorably of your product or service, they send a free, credible and targeted marketing message. And when word spreads, it usually spreads fast. No other marketing tactic provides such benefits in one package.
But many companies mistakenly believe that WOM is just something that evolves from providing a good product. That's not necessarily the case. WOM marketing is as structured a strategy as they come.
Below are some steps you can take to build a WOM marketing campaign.
BEFORE YOU START
No company can launch a successful WOM campaign unless it provides a quality product or service. So before you consider WOM marketing, you have to ask yourself, "is our product or service worth being praised?" If the answer is yes, you can move on to formulate a WOM strategy. Otherwise, go back to the drawing board.
INSPIRE CUSTOMERS
WOM marketing rests in the firm's ability to inspire customers to champion your product or service. This effort can be broken into two parts: Inspiring external customers, and inspiring internal customers.
External customers are those who buy your product or service. A firm can inspire them by offering the highest possible value for their product. One powerful way to do this is by mass customizing services for customers. Another way is by offering value that they do not expect prior to purchase. Both require remembering each customer and treating him or her as the only customer you have.
Another way of inspiring external customers is by contacting them when they are psychologically vulnerable - i.e. in a state where they may lose confidence in your product. For instance, some firms contact their customers a few months before their product's warranty runs out, just to make sure everything is O.K. This tells customers that you care about them long after the sale is done.
Every company has its share of dissatisfied external customers. Inspiring them to talk is possible, however. Thank them for bringing their complaint to your attention. Offer to correct the problem immediately, or offer a replacement product. Give them something extra for the trouble they endured. Follow up to make sure they are now satisfied. Finally, inform those customers that you have permanently changed your firm so the customer never again endures such a problem.
It's also important to inspire internal customers. Internal customers are your employees, vendors, suppliers - all those who contribute to your firm's day-to-day operation. Inspire these customers by being honest and fair. Offer training and career opportunities. Promote continuous quality improvement. Offer incentives for customer service and superior performance.
FIND THE INTERNAL AND EXTERNAL CHAMPIONS
You can't kick off a WOM campaign unless you find the people who will spread the word. Champions want to know that they are appreciated for spreading the word.
Ask new external customers how they heard about you. Ask current internal and external customers whether they have transmitted information about your firm. Ask current internal and external customers whether they have heard about you through other people, and find out who those people are.
By identifying the champions, you can more efficiently and effectively target your WOM strategy - and you'll see results sooner.
BUILD RELATIONSHIPS WITH CHAMPIONS
Now that you've found the champions, it's important to build relationships with them. Try designing an incentive system for referrals - a discount on future services is one common option. It's also important to thank these champions with sincerity when they do pass the word.
It's also important to make sure these champions have accurate information about your product or service. Otherwise, they could spread false information that may backfire. Also, make sure they are among the first to receive information about new products or services you may offer.
