In preparation for our twins due last October, I had some home improvement work done on my house, converting a loft into an additional bedroom. At the referral of another, M.A.C. General Contractors (the firm I hired) did an outstanding, high-quality job, within the timeframe and budget promised, and, with courteous, professional and expert staff. I was so pleased with their work that I included a note with my final payment that read “If you’re interested in using me as a reference, please do so…”

Word-of-Mouth Marketing – Listen Up

Word-of-Mouth Marketing, or WOMM, according to Wikipedia, is a term used in the marketing and advertising industry to describe activities that companies undertake to generate personal recommendations as well as referrals for brand names, products and services. Word-of-Mouth promotion is highly valued by advertisers. It is believed that this form of communication has valuable source credibility. Research points to individuals being more inclined to believe WOMM than more formal forms of promotion methods: The receiver of word-of-mouth referrals tends to believe that the communicator is speaking honestly and is unlikely to have an ulterior motive (i.e. They are not receiving an incentive for their referrals.)  When executed successfully, WOMM is viral, it’s exponential, and it can build your business quickly and more efficiently than any other form of marketing.

“There is no better new customer than a referral from a happy customer. I don’t care what business you’re in, this is true. The referred customer has less skepticism, and is less price-resistant, more receptive and more easily sold and satisfied,” states Dan S. Kennedy in The Ultimate Marketing Plan. Word-of-Mouth Marketing is by far one of the most powerful forms of marketing. So what inspires a referral from a satisfied customer? What is a good referral capable of? How can a business owner proactively plan and track Word-of-Mouth Marketing? And, how can a business make Word-of-Mouth Marketing an integral part of their marketing mix and corporate culture?