According to Forrester Research (2008), 83% of Americans say friends and acquaintances are the best source of info on products and services. I’ve also heard, and am more convinced, that this percentage is well over 90% (proof in itself that word of mouth is highly persuasive.)
Without a doubt, WOM recommendations and referrals have a huge influence on the way we think, and therefore drive an enormous number of the daily decisions we make.
Savvy businesses use the WOM phenomenon, and with great success. But this isn’t news to the average small business operator. Recently, I asked a group of Rotary Club members to raise their hands if WOM was their most important source of business. The response was well over 90%. Many indicated that WOM was the only marketing they did — beyond their club membership of course. But club membership is just another medium for WOM right?
A few months ago two Forrester Research analysts, Josh Bernoff and Augie Ray presented some very interesting findings posted on Mashable/Business about how WOM works with the influence of the internet. Along with some interesting stats, they presented a “Peer Influence Pyramid” that breaks down influencers into three types: Social Broadcasters (at the top), Mass Influencers (middle), and Potential Influencers (bottom of the pyramid).
Social Broadcasters are special in that they aren’t moved by traditional news. For businesses to get their attention, they need to “develop customized offers for them that they can’t refuse, that reflect [their] understanding of [social broadcasters’] uniqueness and point of view.” E.g.: Since broadcasters are great for bringing awareness to skeptical readers, businesses should give them an exclusive “behind the curtain” look at what makes their business special, while making sure it’s tailored to their typical themes.
Mass Influencers are in the middle, and moving them “involves giving them something to talk about.” Since most of the people they influence are friends and acquaintances, businesses will want to provide info or news that influencers would proudly share with those who trust them the most. E.g.: Give them the inside scoop on a special deal with limited availability, like an activation code to reserve one of the private patio tables at a romantic restaurant.
Potential Influencers are not as motivated, nor as technically savvy as Social Broadcasters and Mass Influencers, so businesses need to “come up with ideas that are so drop-dead great and so relevant to [their] defined audience that they can’t help but spread them.” E.g.: Forward an email that rewards all who open it with a free iTunes song from a list of the current top 40 in key genres.
So what does this all mean? Well, for many small businesses, this means you’ll need to put yourselves in the shoes of these 3 different influencer groups to get the best results. For your next word of mouth marketing effort, ask yourself, “What is the most compelling thing [specific influencer group] would want and expect from us?” Then try to deliver it — simply and affordably.
Tonight, paste a note on your bathroom mirror to remind yourself everyday to take a few minutes to boost your WOM. Using social media like Rotary Clubs, Facebook and hybrids such as LikeList are a great way to do this with very little effort. Over time you’ll see benefits that will often outweigh your investments made, and out perform your traditional marketing efforts – especially if you’re continuously using them too. But that’s a topic for another posting!
