Tag: Marketing

Decoding WOM Messages

Today’s lesson will talk about how word of mouth messages are delivered and how you can influence those messages.

There are essentially three methods of word of mouth:

  • Expert to Expert
  • Expert to Peer
  • Peer to Peer

When experts are talking about your products or service, you will usually receive a fantastic rush of sales and new customers, so obviously, this is one of the best things that can happen. You can also help to facilitate this by offering free products to experts for them to review.

Expert opinion can also bring about new ideas that help fuel new products, services, and operating systems within your company. If you take the time to change or develop the opinions of even a small group of experts, you will have the opportunity to help your market explode.

There is a standard word of mouth delivery system that, in most cases, takes a few years. But, you can speed this up into only a few weeks. The standard system is:

  • First impressions from an expert
  • Organized trial of your products or services
  • Pooling peer experiences

It’s important to know exactly who is advocating for your products and service. Take the time to find out who they are and reward them. While you may already have a customer service system for filing complaints, do you have one for compiling praise? Most likely not. If you take the time to show these people appreciation, they will help take your products and services to the top.

  • Some of the ways you can show them appreciation are:
  • Invite them to a customer appreciation dinner
  • Offer to videotape their testimonials
  • Ask to interview them for feedback to improve with
  • Offer them a premier customer membership
  • Ask them to join a referral incentive program

You can offer your biggest fans lots of things to help spread the word about your products and services.

Conventional media has been around forever, and while it can still be effective, it’s lost a little of its luster over the last few years. There are a few reasons for this:

  • Expensive and doesn’t necessarily return results
  • Boring, lacking something fresh and new
  • Too short of a time slot to offer enough information

While these are all true, there are ways you can make conventional media work for you. For the information to be effective, it needs to be presented in the right sequence, come from the right sources, be relevant to the target customer, be credible, and be delivered at the right time in the medium.

We’re going to switch gears a little and talk about the product adoption cycle’s two phases. Traditional media is great for taking you through the information stage where you can offer the information you need to your potential customers, but it’s not so great for measuring the results of those efforts.

Without these results, you can’t fine-tune your marketing and can easily miss the boat and lose potential customers and waste a lot of money. Once a consumer has the information they need, they’ll go through a verification process as they analyze whether or not the purchase was a good one. They generally get their information through:

  • Direct experience with the product
  • Interaction with peers using the same product
  • Experts’ experience
  • Scientific journals and other resources
  • Independent reviews and opinions
  • You can accelerate this process by:
  • Providing your own demo’s and free trials
  • Offer them indirect experience through the experience of others
  • Offer a good true story that can be passed around

Once you have the ability and are able to work through these concepts, you will be able to target your customers much better. If you need help with any of this along the way, try our GUIDED TOUR to gain access to our experienced business coaches.

Learn More About How To Get Started Online (FREE Webinar)

For the past several months, I have been quietly exploring the world of Internet marketing.

Like many people around the world, I was interested in starting a new online business to make ends meet due to tough economic times.

What I discovered is that there are a lot of products and services that are overpriced and below expectations.

I was about to give up until I was lucky enough to run across the one solution that changed everything.

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But Groove is BETTERand FREE.

Yes, no joke.

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Listen, there’s just so much about the product that I am not qualified to share with you just yet (I’m also still learning myself!).

All I know is that access to the software is free, and so is the community, training, and ongoing support.

In terms of the nitty-gritty details, the good news is that their amazing team is also willing to share with us on a live webinar.

I believe there’s only one available slot for the next whole week, so you may want to check your schedule to see if you can fit it in to join the webinar with me.

Learn more about the webinar and register for the live session here.

Harness the Power of WOM

Today we’re going to talk about how to harness the power of word of mouth. Including the six-step process to success and the 30 (that’s right, I said 30) ways to harass the power of WOM. So, let’s get started!

There are six steps to harassing word of mouth:

  1. Understand your customers’ values and priorities, this will help you understand why they would buy your products.
  2. Understand the different adopter types: innovators, early adopters, middle majority, late adopters, and laggards.
  3. Identify which decision stages are needed for your product to be adopted.
  4. Use the information from steps 2 & 3 to figure out which wording, and word-of-mouth tactics are going to work using the Decision Maker Matrix (we’ll talk about this in a minute).
  5. Put together the resources for the highest word of mouth impact.
  6. Create and implement your word-of-mouth campaign.

The Decision Maker Matrix is based on years of trial and error by George Silverman. It essentially charts different concerns you may come across when working with different adopters and putting together a decision process for each one.

We are now going to move on to the 30 ways to harass the power of WOM:

Use Experts

Experts can come in many forms and all their opinions should be taken into consideration when putting together a WOM campaign. Some experts to gather information from include:

  • Customers
  • Suppliers
  • Experts
  • Salespeople
  • Experts’ roundtables
  • Experts’ selling groups

Seminars, Workshops & Speeches

These venues are a perfect opportunity to gather information. People who attend these types of events are used to giving feedback, so you can use a survey or other method to gather information you can look over later. Some events to use are:

  • Speakers program
  • Seminars
  • Group selling
  • Dinner meetings
  • Peer selling groups
  • Teleconferenced experts’ panels
  • Trade show events/opportunities

“Canned” Word of Mouth

The concept of “canned” word of mouth is using hard and online products to get feedback and offer information at the same time. Some ideas for these are:

  • Videotapes
  • Audiotapes
  • World Wide Web
  • CD’s

Referral Selling

As we’ve talked about before a referral program can help with a variety of things in building your business. By using some of the following tactics and opportunities you can find out exactly what you need to do to generate positive word of mouth. These tactics and opportunities are:

  • Testimonials
  • Networking
  • Referral Selling Program

“New” Media

The concept of “new” media is the use of up-and-coming media sources and opportunities to get the word out about your products and services and listen for the feedback about them. Here are some of the “new” media options:

  • Hotlines
  • Faxback services
  • Web-based word of mouth, such as forums, e-mail, etc.
  • Call centers

Using Traditional Media for Word of Mouth

Using traditional media is a great way to get feedback. These are still considered mainstream ways of interacting with the public and consumers. Some traditional media outlets are:

  • Customer service
  • PR
  • Placements
  • Events
  • Promotions
  • Word of mouth in ads, sales brochures, or direct mail
  • Salesperson programs, sales stars, or peer training,
  • Word-of-mouth incentive programs (“Tell-a-friend” programs)
  • Customer gifts they can share with their friends (articles, how-to manuals)

Internal Word of Mouth

  • Encourage employee word of mouth and sharing feedback with family, friends, and others.
  • Offer rewards or commission for word-of-mouth success.

As you can see there are tons of ideas you can work with to increase your level of positive word of mouth marketing. If you need help with any of this, please try our GUIDED TOUR to access our exclusive resources that can help you put this whole thing together.

Word of Mouth Tactics – Part 3

Last time we talked about the second part of the word of mouth tactics that help you put together a system to help shorten your customers’ purchasing decision time, which can increase your profits immensely.

Today we’re going to talk about the nine levels of word of mouth, which gives you a tool to measure word of mouth circulating your company, products, and services. You can then see where you are getting negative or weak word of mouth and find ways to correct it.

So, launching into the nine levels of word of mouth-it should seem relatively obvious that the negative levels are, well, negative and the positive levels are positive.

Minus 4

This is the worst of the worst and means your product is creating a scandal. Remember when the popular over-the-counter pain relievers, like Tylenol were deemed unsafe? Yea, you won’t want that kind of word of mouth.

Minus 3

Disgruntled customers are going out of their way to convince other consumers from purchasing your products and services. They are boycotting you.

Minus 2

While not outwardly boycotting, when customers are asked about you, they will give a negative response.

Minus 1

At this level, people are mildly dissatisfied, and while not outwardly talking about it, they will have an opinion if asked. Now they may purchase from you despite their negative feelings. This can be a little confusing.

Level 0

This is sort of a neutral place to be. Customers are using your products but don’t really talk about them. People rarely ask them about it, so they aren’t sharing their opinion with others. This can be a bit of a slippery slope because you don’t want to turn that neutral experience into a negative one. In fact, you should work to make it a positive one.

Plus 1

At this level, we are finally starting to work our way into the positive word of mouth about your company, products, and services. Plus 1 signifies that people are generally pleased with your products but don’t really say anything about them unless asked.

Plus 2

When asked, your customers will talk about how much they love your products.

Plus 3

Customers will go out of their way to talk about your products, services, company, and their shopping experience with you. This is most evident when you see how people recommend movies to their friends and family.

Plus 4

Your product is the toast of the town. There is an unmistakable buzz going around, and your business is the place to be. People are not only talking about your excellent products and services, but they are talking about their shopping experience, your customer service, and how they perceive the company to help them in the future.

Some great examples of Plus 4 companies are:

  • Lexus
  • Harley Davidson
  • Saturn Cars
  • Netscape
  • Apple Computers
  • Celestial Teas

We’re going to leave this lesson for you to mull over and take a look at what kind of word of mouth you are generating. If you need help with this process, try our GUIDED TOUR to get help from our experienced business coaches.

Next time we’re going to talk about the 30 ways to harness the power of word of mouth.

Word of Mouth Tactics – Part 2

In the last post, we started our series on word of mouth and talked about making your customers purchasing experience a short, easy one. We are going to continue with that theme a bit today. We’re going to talk about the power of word of mouth and how to mold it to your advantage.

The reality is everyone needs an advisor to guide them to make a decision. We rely on the expertise of others to make the right decisions as they are explained to us. When you take the time to understand exactly what and how word of mouth works, you’ll see all the significant advantages it has to offer you. Remember this path when working to understand word of mouth:

  • Accelerate the decision-making process for increased profits.
  • You can accelerate product-making decisions by making the process easier.
  • Instead of low-ball advertising and the used car salesman approach, try delivering on your word of mouth promises.

Traditional advertising draws about one response for every thousand ads, and most of those are to ask for more information before the customer even considers purchasing. When you get information from a friend, you are more likely to take their word for it and act. On average, customers purchase two out of every five recommendations their friends make. That’s a HUGE difference.

So, what exactly is word of mouth? We know how powerful it can be, but to define it: Word of mouth is a communication that happens between a customer and a potential customer. There is usually a relationship of some kind between these two people with an established level of trust.

Compare this to advertising where you are providing a message to a potential customer where they have not established a relationship with you or level of trust. Who are they more likely to take advice from? The answer is clear! We talked above about the benefits of word of mouth, now let’s take a look at some reasons why it works. Some of these are:

  • The information is custom-tailored to the potential customer because of the friendly relationship of the referrer.
  • It’s more personal, relevant, and believable.
  • It’s customer-driven.
  • It’s self-generating and can take on a life of its own, especially with the Internet’s information age.
  • It becomes part of the product’s description.
  • The source of word of mouth can be meaningful and more effective when coming from an expert.
  • Word of mouth saves you time and money.

To fully utilize word of mouth, you need to understand:

  1. Where is your word of mouth coming from?
  2. What products are being affected by word of mouth?
  3. How is your word of mouth traveling?

Once you know these things, you can work out a plan to trigger more word of mouth. This wraps up this lesson on word of mouth. If you need help understanding word of mouth and how it can impact your business, try our GUIDED TOUR to access our wealth of resources and tools.

Next time we’re going to dive into the nine levels of word of mouth. These levels help you understand which word of mouth is positive and which is not.

Word of Mouth Tactics – Part 1

Today we’ll start a new series talking all about Word of Mouth and how it can make or break your business in an extremely short amount of time. In this first lesson, we’ll get a feel for what exactly word of mouth is.

Word of Mouth is easily the most powerful form of marketing and is absolutely free. People talk about ads they see, experiences they have, and the products they purchase. If you treat people right and spread the word about your new products/services positively, you’ll attract the right customers and clients who will sustain your business for a long time.

Now, as positive as word of mouth can be for your business, the other side of the coin is how negative it can be as well. Bad news seems invariable to travel faster than good news, and if you have a less than high-quality product or weak customer service system, then your customers will tell everyone they know not to buy your products and services.

The age of technology has proved to be a fantastic benefit in the world of word of mouth. With blogs, podcasts, online marketing, forums, social networking, and all the other online mediums available, it is easier for consumers to share their experiences. And, remember this is all free advertising for you.

Let’s take a minute to discuss the importance of shortening the customer decision cycle to help customers/clients choose more quickly and easily. There are three great ways to increase sales by shortening the decision cycle. They are:

  • Increase the overall dollar amount customers spend on each purchase.
  • Increase your number of customers.
  • Increase frequency of purchases.

Let’s take a more in-depth look at decision speed. Offer simplicity, ease, and a fun purchasing atmosphere and you’ll help your customers make their decisions quicker and more confidently. When this happens your customers will buy more frequently, spend more money than usual, refer friends, and decide to purchase more quickly. This can raise your market share by over 100 times.

The time it takes your customer to decide and purchase far outweighs any other component of marketing. When you focus on customer decision speed, it forces you to take a hard look at your company and brand image, positioning, value, customer service, guarantees, and product quality.

The next area I want to talk about quickly is how to minimize the friction, or stress, involved with decision making. No matter how easily people find decision-making, we all experience a certain amount of anxiety when making a purchase, especially from a new source or for a large amount of money. When you help minimize this emotional response, you will soothe your customers’ anxiety, and they will make their decision quicker and more confidently.

There are a few secrets to accelerate the customer’s decision making progress:

Your benefits, features, claims, and promises must be obvious, clear, and concise.

The information you offer must be complete, easy to understand, credible, and balanced.

Use comparisons that show a marked difference.

Your guarantees must be rock solid and more than the customer expects.

Make trial periods easy.

You must have simple evaluations of your products or services.

Testimonials need to be relevant and positive.

Your support, delivery, and other operational systems must be perfect.

Your website can be as good as you make it. You can offer more than information. You can offer an experience that guides your customers gently through the decision-making process to make it easy for them to buy. Take it a step beyond by offering toll-free support numbers, software downloads to help with the process or other classy and informative ways to reassure your customers that you are there with them every step of the way and have nothing to hide.

This wraps up the first post in our series on word of mouth. If you need help identifying your target market and the issues they are experiencing during their purchase that makes their decision time long, try our GUIDED TOUR and work with one of our coaches to come up with the best way to smooth out your purchasing experience.

Next time we’ll move forward with word of mouth and talk about the power of word of mouth and what precisely this powerful tool is, and what it can be used for.

Maximize Your Resources – Part 2

Last time we talked about the first three areas to work through in maximizing your current resources. They were:

  • Recognize the obvious
  • Unconventional breakthroughs
  • Face the facts

 

Today we’ll cover the next three, which are:

  • Reveal your business’ soul
  • From breaking even to breaking the bank
  • Stand up and stand out

 

Reveal Your Business’ Soul

Every business has a soul, and you likely felt it the strongest when your business was just starting. It’s that passion, newness, and momentum you had at the very beginning. Sometimes that can get lost along the way as your business gets stagnant and set in its ways. You have to break out of that rut and get back to your business’ true soul.

The philosophy of putting your client’s needs above your own is the true key to success. You need to serve your clients, not sell to them. They want to build a relationship based on trust, not a used car. Add to these responsibilities your ability to solve problems, handle special situations, be a friend to your clients, and focus on offering valuable, high-quality products/services. Only then will you get back to the basics and find you have more resources than you thought.

From Breaking Even to Breaking the Bank

One of the classic and most used ways to attract clients is to offer them a ridiculously low price on their initial purchase and lock them in for future purchases. You see this approach with movie or book clubs and even credit card companies who offer lower interest rates for the first six months.

Essentially, you are offering them a deal on their first purchase and then you offer them back-end and add-on products along the way. These are naturally higher prices and will bring them into an intimate relationship with you and your company.

Stand Up and Stand Out

You need to stand out from the pack among your competitors. The only way you can do this through consistency and value. You do this by discovering what your USP (Unique Selling Proposition) is and perfecting it. Here are some tips to help you find and develop your USP:

  1. Look for unfilled needs in your industry.
  2. Use preemptive marketing.
  3. Use a technique that is clear and to the point.

This wraps up this post. If you need help with any of these areas and techniques, try our GUIDED TOUR to access a wealth of resources and tools.

Maximize Your Resources – Part 1

Over the next few posts, we’re going to talk about how to take a hard look at your current resources and get the most out of them. This can help your capital go further and increase your profit margin.

Today we’ll cover three different ways to maximize what you already have. These include:

  • Recognize the obvious
  • Unconventional breakthroughs
  • Face the facts

 

Recognize the Obvious

Sometimes when you are too close to something, you can’t make out the big picture. You need to step back and take a hard look at the resources you currently have in front of you. You are surrounded by opportunities that can boost your career and help your business become more successful.

Unconventional Breakthroughs

Don’t sit around waiting for breakthroughs. You need to create them yourself. A breakthrough is merely a new way of doing things or finding a new thing to do for the same or better results. It would be best to have regular brainstorming sessions and encourage your team to come forward with breakthroughs or ideas any time they have them.

Some great examples of breakthroughs are:

  • A health and beauty company discovers a side effect of a product that can be re-marketed and sold.
  • A company creates a roll-on deodorant inspired by the shape and size of a ballpoint pen.
  • Nike’s founder poured rubber onto a waffle iron and created the most innovative and successful running shoe ever.

 

When attracting or strategizing for a breakthrough, there are some key objectives you need to keep in mind. They are:

  1. Look for the hidden opportunity in every situation.
  2. Look for at least one cash windfall for your business every three months.
  3. The more value for your client, the better your breakthrough.
  4. Create multiple streams of an idea to find the best breakthroughs.
  5. Effective breakthroughs remove all risk or resistance.

Face the Facts

Before you can put your breakthroughs to work, you need to face the facts of the processes and systems that are not working for you and work to correct or get rid of them. System analysis is an excellent way to do this. Once you have a listing of your strengths and weaknesses, you need to compare those to your competitors’ strengths and weaknesses.

You can present some great questions to you and your team to get a handle on where your business is right now. They are:

  1. Why did I first start this business? Why am I in this industry?
  2. What products/services did I offer then? Which were the most popular?
  3. Why are my customers/clients buying from me right now?
  4. How did I generate new customers/clients then?
  5. Which of my marketing efforts were bringing in the best results?

Once you’ve got some answers to these questions, you’ll know better how to approach your weaknesses.

These three areas we’ve gone over give you a jumping-off point for how to utilize your current resources to their fullest potential. If you need any help with your strategic or systems analysis, try our GUIDED TOUR to work with one of our amazing business coaches.

5 Killer Mistakes – Part 3

The last two posts covered the first four of the killer mistakes you can make that will not only make you lose your fish but possibly your entire company. Today we’re going to talk about the fifth killer mistake: Up Cash Creek Without a Paddle.

Even when a business is profitable, there’s still a chance of running out of cash flow. You have to always be prepared for a slow in sales or a surge in expenses. One of the keys to balancing your cash flow is to get your clients to pay on time. This can seem like a nightmare, but is absolutely essential to a successful business.

Here are some tips to speed up the payment process:

  • Always send invoices on time and adjust your records for potential audits.
  • Learn how the client processes payments on their side and find out precisely where to send invoices.
  • Find out who’s in charge of processing orders and payment, so you know who to contact if needed.
  • Have a follow-up procedure in place, just in case.
  • As a last resort, call your contact to ask questions.
  • Always make sure your invoices are correct before sending them out.

 

You also need to make sure your cash flow is protected. You can do this by:

 

  • Always know which accounts need paid and when.
  • Negotiate with your suppliers for the lowest cost possible.
  • Have a bank contingency plan in place.
  • Build your own inventor network.

 

These are all great ways to protect your business’s cash flow and prepare for fish transitions and slow sales. These last few lessons are all about finding and catching your big fish clients. These clients are essential to your success, and your need to carefully and correctly work through each of these steps for the best success.

If you need help with any step of the process of catching your fish or subsequent big fish clients, try our GUIDED TOUR for access to a wealth of great tools and resources as well as our business coaching staff.