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Why Are Word Of Mouth Referrals So Important?

Nov 26, 2007
Anyone that is looking at advertising, marketing or any other campaign form to encourage consumers to contact them is interested in the most believable type of advertising. They want the consumer to know that what they are saying is real and therefore it should be reason enough to bring that person in. The most powerful method to accomplish it is word of mouth. Why? Trust is the single benefit that comes from word of mouth methods of advertising.

With word of mouth, studies have shown, people simply believe it. Would you trust your friend? Of course! For this reason, any type of business can benefit from effective word of mouth advertising. How to you accomplish this?

You want to encourage your customers that they have something to talk about.

For example, some retail chains have used the method of giving the customer some form of coupon for their next visit and tagging on a second one for their friend. This encourages open communication about the company and draws in the second customer.

How can you do this? Look at what types of lures you currently use to draw people in and double that for their friends. Everyone benefits, especially you with word of mouth benefits.

An Example Of Good Word Of Mouth

Pretty much anyone on the web has heard of Gmail, Google's powerful email accounts. But did you know that very little money was spent in promoting it?

In fact, the single type of advertising used was that of word of mouth.

If you were lucky enough to get an account, you were given several other accounts to share with those that you wanted to share with. The key here was the fact that unless you were referred by someone, you couldn't just open a Gmail account.

Pure word of mouth advertising was used.

In turn, this created a buzz and if you didn't have a Gmail account, you wanted to have one.

Gmail became one of the most in demand accounts to have, with little to no advertising dollars spent on it.

The question is, how can you take this example of word of mouth to the extreme and use it in your own business?

Can you give away a service? A reward for referrals? Or even just provide superior service to your clients so in turn you can deliver to them enough to talk to create a buzz?

Word of mouth, such as Gmail's example, is powerful and launches small or large businesses into a new world.

If you can use this example in your own business, chances are you can achieve the same success.
About the Author
Daryl Logullo is the Founder of Strategic Impact!
and MaximumReferrals.com. He concentrates
on referral building strategies for today's professional.
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