The Customer Experience and Word of Mouth

Professional services customers have many alternatives available to them. Professional and business services companies (lawyers, accountants. marketing consultants) pretty much provide the same basic products. Granted the quality will differ on the basis of a firm’s expertise, but in the case where the quality of services is minimal or equal, how can one firm distinguish itself over another.

People usually talk about things that have touched them at an emotional level. But let’s be clear about what they get emotional about. Having a good product or service is table stakes. Your customer would not be dealing with you if didn’t. Products and services are the “what”that businesses provide their customers. While it is certainly possible to develop better products and services that will inspire customers, it usually does not take long for competitors to copy any new feature.

Customers get emotional about the quality of their experience with a brand, product or service. That experience occurs at each of a firm’s touch points for example:

• Company web site
• Telephone
• Customer service
• In-store/office visit
• Product/service delivery
• Billing & Return policies
• Brochures, flyers, ads
• Proposals

The emotional connection comes not from the “what” we provide, but rather from the “how” we provide it. Focusing on creating a unique customer experience at each brand touch point is a more sustainable approach to differentiation. Companies like the ones listed below provide unique experiences and are talked about, often in glowing terms. They are consistently at the top in terms of customer satisfaction and loyalty ratings.

• Company web site – Disney
• Customer service - Nordstrom
• In-store/office visit- Stew Leonards
• Product/service delivery- Red Envelope
• Billing & Return policies – Zappos.com

The takeaway: A key step in creating a word of mouth marketing campaign is to identify and define the customer experience at each of your touch points. Talk to your front line providers ( receptionists, sales people, customer service) and get their take on customer’s perceptions. Then, get your customers’ perspective. Do a little research and find out what their perceptions are of how you deliver. Addressing the gaps between customer and company perceptions is a good place to start to focus on delivering a unique and differentiating customer experience.

Does Word of Mouth Matter if a Business Isn’t Listening To It?

Word of mouth takes place regardless of any controlled measures a business may take to control the messaging. Some companies go so far as to create their own corporate blogs as a way to counteract the negative comments that are so prevalent on user generated blogs. This is completely the wrong approach. Corporations tend to think of bloggers as the “lunatic fringe” that can never be satisfied. However, by being so dismissive, corporations squander an opportunity to turn negatively engaged business bashers into advocates and evangelists. In many instances the lunatic fringe have uncovered a flaw in the business plan, something that happens that creates a negative reaction. The raw data that comes out of blogs is probably the same sort of things being said about you in other mediums where people gather to share information and stories.

Note to small businesses, never be afraid of feedback from your customer even if it is negative. If you can turn the negative into a positive then you will have created a long term advocate for your business.

Word of Mouth Lives in the Barbershop

I’m sitting in the barbershop today and I’m hearing guys talking about books, the best HDTVs, the Obama speech. These types of conversations are pretty commonplace. Barbershops and beauty salons are where a lot of conversations take place. The centers of influence can often change from topic to topic. Small businesses should take notice and consider the B&B networks (Barber Shop & Beauty Salon) when developing a word of mouth campaign. They are great places to launch a new concept or service. If nothing else you’ll get some pretty candid opinions.

Nothing “Butt” a Word of Mouth Campaign

One of the great things about word of mouth campaigns is that it provides another outlet for creativity. In trying to come up with ways to get people talking, everything, including current events is fair game. It didn’t take long for a marketer to come up with a way to leverage the recent sex scandal involving former New York Governor, Eliot Spitzer.

Martin Silver, CEO of Star Industries wants to generate buzz about his company’s Georgi vodka by putting pictures of Ashley Dupre’s butt on the rear of every bus in New York. In an Advertising Age article Mr. Silver talks about his company being quick to try and capitalize on the “word of mouth buzz”New York’s newest celebrity could bring to his vodka. The takeaway for his competitors, its better to be first, instead of bringing up the rear.

Generate Word of Mouth the Old Fashioned Way…Earn It

Creating an effective word of mouth marketing campaign requires an understanding of the natural process that consumers go through when deciding on a brand, product or service. We all seek the advice of others and are more than likely exposed to several different alternatives through the traditional forms of advertising. But during the decision making process we try and get objective and unbiased information usually from sources we trust such as family, friends and colleagues within our personal social networks.

This lies at the heart of why word of mouth is so effective. We know that the folks in our social network are more interested in our well being than they are in the well being of a company (at least we hope that they are). They will tell us the good, the bad and the ugly things they have experienced or heard about a product and share it with us.

Interestingly enough some companies recruit people to serve as brand ambassadors. Their assignment is to create buzz about a product. These brand ambassadors are given samples and other incentives to do their jobs. Sometimes this can backfire. Just ask Target.

Small businesses should build word of mouth the old fashion way…EARN IT. You earn positive word of mouth by having either great products or world class, knock their socks off service. Companies that commit to this over the long term will have a sustainable competitive edge rather than a passing fad and can avoid the embarrassment of being outed by bloggers.

Research is the first step in developing a Word of Mouth Marketing campaign

So I sent a note to Andy Sernovitz the other day. For those of you who may not know it, Mr. Sernovitz is the Godfather of the Word of Mouth discipline. He is the author of Word of Mouth Marketing: How Smart Companies Get People Talking and a co-founder and past CEO of the Word of Mouth Marketing Association.

I asked what role research played in a word of mouth marketing campaign. He replied, “I think research is key to the process. We need to know who is talking and what they are talking about. It should start with the research side!”

Before you begin a word of mouth marketing campaign, find out who’s talking about you, what are they saying and why. All the other steps in developing the campaign will be that much more productive.

A Reality Show for Small Business?

Reality shows are the newest form of American entertainment. Most have no socially redeeming qualities whatsover and simply cater to our base desires. You know the one’s I’m talking about and I’m not about to acknowledge any of them here.

Well, finally there is a reality TV show in development that will raise the bar for this genre of tv entertainment. Andrew Morrison, founder of Small Business Camp – an entrepreneurial training and marketing services firm is planning a Small Business reality TV show. The 16 Week Challenge ™ television show follows several small business owners as they attempt to reach their financial goals while their business coach, Andrew Morrison, will also challenge himself to make $100,000 in 16 Weeks. The show will entertain, educate, and create a learning community for those who seek to reach their goals in less time and with less effort.

Small business owners, you heard it here first. So be on the look out for this exciting show. We’ll be posting more information about The 16 Week Challenge ™ as it gets closer to being aired.

Can A Small Business Manage Word of Mouth?

We’ve talked a lot about word of mouth. But it begs the question, can a small business manage word of mouth to help generate referrals and build sales? Well, gL Market Research wouldn’t be in business if we didn’t think so. So much for shameless promotion.

But seriously, more often than not, small businesses just accept referrals as they come without ever really trying to understand how they get them, why they get them or where they come from. Small business people I talk to have a general sense about their referrals but no real plan for how to manage them.

Referrals are the outcome of positive word of mouth. The individual or business that referred you was sufficiently impressed with some aspect of your product or service to the extent that they would potentially risk their own credibility to recommend you. Don’t let them down. Treat that referral like your only customer. Not only will you gain a new customer, you’ll make your original customer look good to his friend, reinforcing his status as an influencer.

Make sure to thank the referrer and if possible send him a thank you note or offer a discount on a future sale, anything to acknowledge his efforts. It will help the relationship and may be enough of an  incentive for him/her to continue sending you business.

Word of Mouth Led Me To WordPress

It was through Word of Mouth that I found out about WordPress in the first place. I participated in Andrew Morrison’s Small Business Boot Camp ( www.SmallBusinessCamp.com ) this past February 22-24th. Mr. Morrison, an engaging and inspiring speaker with a huge following of small business owners, introduced me and 82 other small business owners to WordPress during an intense day and a half session.

He suggested that one of the best ways to promote a business, especially those of us in the advice business is to have a blog, and so one of the exercises he had us go through was to create a blog using WordPress.

Needless to say, I’m one of the attendees that got hooked and ever since, I’ve been spreading the word about this wonderful communications tool. My enthusiasm is driven by the ease of use and it seems that every day I’m hearing others talk about how good it is compared to other such platforms. Nothing like having a decision reinforced by others!

So my experience with WordPress is a case study in how word of mouth works. Someone who I perceived as credible told me about a product they used and were happy with. I accepted their recommendation, tried the product and discovered that I like it too and so I’m telling others about it.

Now as long as my experience with all of WordPress’ touch points continue to be positive then the cycle should continue. This is the type of old fashioned word of mouth that works best. Companies that provide a great product and/or excellent customer service on a consistent basis can have a certain level of confidence that the buzz about them will tend to be positive.

Tap Into Emotions To Create Positive Word of Mouth

Emotions play a role in business. From the old school marketer who relies on his gut, to the fiercely loyal consumer who won’t buy anything but a certain brand, emotions are at work. Word of mouth is driven by consumer emotions. People talk about things that touch them. If their experience with a business is positive and exceeds their expectations in a meaningful way then it is likely they will share it with their circle of friends in a positive way. The opposite is also true. Fail to deliver or create a negative experience and your business could be on the wrong end of a blog post that could be seen by millions.

Small business owners must be conscious of all the ways that their customers and prospects come in contact with them. In consultant lingo these are called “touch points”. Touch points include your:

• Office, store or other place of business
• Website
• Receptionist
• Voice Mail
• Customer policies and procedures
• E-mail
• Brochures
• Business cards
• Presentations
• Reports

The touch points are where you demonstrate your brand in action. The experience you create for your customers at the touch points will determine the nature of their emotional connection with you.  If you want your customers to position you as a premium brand, then you must provide a premium experience for them at each of the touch points. Do so on a consistent basis and there’s a good chance you’ll create positive advocates and evangelists for your business.