Word-of-mouth referrals hold the utmost power in driving sales conversions. Nothing accelerates a sale more effectively than enthusiastic recommendations from satisfied customers. That’s why all businesses need to develop a word-of-mouth marketing strategy. Unfortunately, many entrepreneurs underestimate its value because it cannot be tracked in the same way as email marketing or promotional codes. You can’t measure the number of impressions or clicks, nor can you determine exactly how many people have been exposed to your brand through word-of-mouth. However, if you notice a sudden increase in sales without an apparent cause, it could be attributed to an unsolicited word-of-mouth campaign—a testament to people spreading positive word about your business.
The principle of reciprocity plays a significant role here. According to this fundamental law of social psychology, we tend to reciprocate what we receive from others. In other words, if someone does us a favor, we are more likely to return the favor to them.
But you don’t have to rely solely on the hope that satisfied customers will naturally share information about your business with their networks. There are ways to encourage and stimulate people to spread the word. Here is an outline of how to create an effective word-of-mouth campaign and measure its success:
- Leave your mark: If your service allows for it, such as landscaping or any work that leaves a visible outcome, ask your clients if you can leave a yard sign or some form of advertisement for a specific period, say thirty days. This lets people in the vicinity know that you have completed a project for a satisfied client. Furthermore, offer exclusive future discounts to clients who refer your business to others. Making them feel special and privileged enhances their willingness to share your name. Over the next three months, keep track of customers who refer clients and invest more efforts in building relationships with them. Show your appreciation through gestures like sending gift cards, thank-you letters, holiday or birthday gifts, or offering additional discounts. By doing so, you ensure that your business remains at the forefront of their minds when they come across potential referrals.
- Thank you cards: Sending thank you cards can be as effective as offering discounts. People appreciate feeling valued, and money doesn’t always convey that sentiment. A simple handwritten card expressing your gratitude can carry more weight than a discount or monetary incentive. Consider sending thank you cards to your top customers quarterly. I highly recommend incorporating a questionnaire on your booking site or website checkout, asking new customers how they heard about your business. Encourage them to provide specific names, so you can personally thank the referrer.
- Request reviews: Reviews play a crucial role in word-of-mouth campaigns, as they influence people’s decision-making process. Customers often rely on the experiences and opinions of others when choosing a product or service. Reach out to your customers through various channels like phone, email, and text, and kindly request them to leave detailed reviews on your website, Google Business Profile, or relevant marketplaces. Emphasize the significance of their reviews in contributing to the growth of your company. Satisfied customers are usually willing to lend a hand by leaving positive feedback.
- Send gifts: Reserve gifts for your top referral clients or those who consistently provide you with valuable leads. Inexpensive yet thoughtful items like gourmet teas, chocolates, candies, gift boxes, or gift cards can demonstrate your appreciation without straining your budget.
Remember, a word-of-mouth campaign is an ongoing marketing strategy. It takes time to build a robust one, but once established, it can generate a steady flow of high-quality leads that convert into sales.
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