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How To Promote Your Business By Word-Of-Mouth

By Tom Egelhoff

I'm convinced that the majority of traffic to this web site is due to one of you passing the URL on to a friend. That's a more credible reference than any words I could every write in any ad. Don't think that I'm abandoning traditional advertising and marketing in favor of strictly word of mouth. Word of mouth is just one more tool in your advertising and marketing arsenal. And, like all the other tools there is a right way and a wrong way to utilize it.

In the case of a new or home based business word of mouth may be the only advertising you can initially afford. In some ways that's good but in other cases it's bad. Let me take just a moment to explain that. First look at the positive versus the negative. Which do you think spreads faster -- positive or negative word of mouth? Chances are you said negative. If you did you would be right.

When you run into someone who is unhappy with a business sometimes the mere mention of the industry itself will unleash a tirade of negative about the specific business. On the opposite side of the fence... if you had a positive experience that may generate only a, "It was good" response. Negativity is a much more powerful emotion than being positive. Positive is comfortable. Negative is uncomfortable.

It's nearly impossible for a business to overcome negative word of mouth with conventional advertising or promotion techniques. It's even harder in a small town where so many people know each other. I will deal with how to handle negative word of mouth later in this article.

People are going to talk about your business. Some positive and some negative. The problem is that you don't have any control over what they say. I'm not totally going to agree with that. Let me show you some ways to control word of mouth

• Be consistent - (See: How To Find What Customers Are Really Looking For) Ever been in a McDonalds that had unbelievable service? Every been in one where the service was just plain awful? Chances are the answer to both questions is no. I know there are some rare exceptions. But over the long haul the McDonalds in Bozeman, Montana is going to be pretty much the same as the one in Johnson City, Tennessee. People are looking for a stable dependable business not one with great service one day and lousy service the next.
• You can't be all things to all people - So don't try. In most cases negatives happen when you deviate from what you normally do well. Unless you are going to add that service to your line or farm it out to someone who does it regularly -- let your competition have that customer. Even if you accommodate them temporarily you won't be able to keep them in the long run. This is the easiest way I know of to create a negative customer.
• Don't attract customers, build relationships - Customers like friendships take time to develop. They become comfortable with the way you do business and you become comfortable with what they want and need. Use these good customers in your advertising and promotional materials. They make great testimonials. Create focus groups with your best customers. Ask them what could be construed as negative. What could you be doing better?
• Keep your name positive - Many newspapers have sections that feature your picture with a small paragraph about some training you received or an award that your company won. Use these to the fullest. Don't forget to feature employees whenever they have a worthy accomplishment.

When you see someone on TV say "NO COMMENT" what are they really saying? I've got something to hide is usually the first thing that comes to mind. If you are faced with a true negative the best course of action is to combat it or admit it as soon as possible.

It may be embarrassing or damaging to your business but the longer you wait the more fuel there is for the fire. If it is a situation with a customer -- contact that customer as soon as possible and defuse the situation as quickly as possible.

There's an old saying, "If life gives you lemons, make lemonade." Try and find a positive in the negative. There usually is one somewhere. You may actually come out of a negative stronger than when you went into it.

Rally your strength around you. Make sure all employees are fully informed of the situation. They are going to be asked about it outside of work. They need to be prepared to discuss the company position. Telling them to keep quiet won't work. The more they know the better they can defend that position.

Rally your customers around you. These are the people who know you and your business. Do a mailing or contact them by phone or even better in person. Let them know what the situation is and what you are doing about it.

The last area I want to cover is employees. Do you have good ones? If you treat them well then the chances are you do. And by treating them well I don't mean paying them well. I mean letting them know when they do something good just a fast and as sincerely as you do when they do something wrong. Good business promotion doesn't start at the counter... it starts in the board room.

Your employees are your best source of positive word of mouth. When people find out where you work what do they ask? "Oh, is that a good company to work for? " How will your employees answer that question? "I love it there." Or, "I'm looking for something else."? (See: How To Lead And Motivate - Yourself And Your Employees)

Successful businesses know the secret to long life is providing a stable consistent environment for each customer from the counter person to the delivery person. You can't have word of mouth without something to talk about.

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This article may be reproduced for your non-profit group or organization provided it is not altered in any way
and the following is attached:

Used With Permission
©2000-2002 Eagle Marketing PO Box 271 Bozeman, MT 59771-0271
http://www.smalltownmarketing.com - (406) 585-0219 - Toll FREE (888) 550-6100
email: tommail@smalltownmarketing.com

Based in Bozeman, MT, Tom Egelhoff is the author of How To Market, Advertise & Promote Your Business Or Service In A Small Town, and The Small Town Advertising Handbook: How To Say More And Spend Less. He is also a seminar and workshop presenter and trainer. He may be reached at 888-550-6100 or PO Box 271 Bozeman, MT 59771-0271

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