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. Patricia Berry reviews the steps you can take to build an effective WOM marketing campaign.
Word-of-mouth (WOM) marketing is arguably the most powerful way to market your products or services. When customers talk favorably about you, they send a free, credible, and targeted marketing message. And when the word spreads, it usually spreads fast. No other marketing tactic provides such benefits in one package.
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, ask yourself, “is our product or service praiseworthy?” If the answer is yes, move on to formulate a WOM strategy. Otherwise, go back to the drawing board.
INSPIRE CUSTOMERS
WOM marketing rests in a firm's ability to inspire customers to champion its 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 don't expect before purchase. Both require remembering every customer and treating each one as your only customer.
Another way to inspire external customers is by contacting them when they're psychologically vulnerable, such as when they might 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 OK. This tells customers that you care about them long after the sale is made.
Every company has its share of dissatisfied external customers. To get them to talk, first thank them for bringing their complaint to your attention. Then offer to correct the problem immediately or to provide a replacement product. Give them something extra for the trouble they've endured. Follow up to make sure they're now satisfied. Finally, inform these customers that you've permanently changed your firm so they'll never have to deal with the problem again.
It's also important to inspire “ internal customers” — the employees, vendors, suppliers, and so forth that contribute to your firm's day-to-day operation. Inspire these customers by being honest and fair. Provide training and career opportunities. Promote continuous quality improvement. Offer incentives for customer service and superior performance.
FIND INTERNAL AND EXTERNAL CHAMPIONS
You can't kick off a WOM campaign without people who will spread the word.
Ask new external customers how they heard about you. Ask current internal and external customers whether they've transmitted information about your firm. Ask current internal and external customers whether they've heard about you through other people, and find out who those people are. By identifying the champions, you can target your WOM strategy more effectively — and you'll see results sooner.
BUILD RELATIONSHIPS WITH CHAMPIONS
Now that you've found champions, it's important to build relationships with them. Design an incentive system for referrals: A discount on future services is one common option. It's also important to thank these champions sincerely when they pass the word. Make sure that they have accurate information about your products or services. Also, be sure that they're among the first to receive information on new products or services.