Tap Power of Referrals to Sell Products and Services, Expert Advises

by WOHe

Tap Power of Referrals to Sell Products and Services,
Expert Advises

Getting people to talk often, favorably, to the right people in
the right way about your business is far and away the number one
most important thing that you can do as a marketer.

That’s the central idea of a new book written by veteran
marketing consultant George Silverman and published by Amacom
Books, a division of the American Management Association.

Sliverman’s book, The Secrets of Word-of-Mouth Marketing: How to
Trigger Exponential Sales Through Runaway Word of Mouth, informs
kitchen/bath professionals and other business owners how to
strategically harness the power of word of mouth to sell products
and services much faster and at a significantly lower cost.

Word of mouth is much more credible than your most sincere
salesperson, Silverman points out. It is capable of reaching more
people and it is faster than advertising and direct mail. It breaks
through the clutter of the thousands of ads and marketing messages
everyone sees every day.

However, it comes with important caveats. Word of mouth is more
often negative than positive. People are much more likely to tell
others about a negative experience than a positive one. For
example, studies reveal that a satisfied customer is likely to tell
three other people, whereas a dissatisfied one is likely to tell 11

Silverman suggests several rules of thumb for helping to
generate successful word of mouth. Among them are the

  • Give your customers something worth talking about. Ordinary
    service is ordinary. If you want people to discuss your business as
    something special, you have to give them something special. For
    example, be very free with advice and recommendations on products.
    If a customer requests a product you don’t carry, make sure the
    customer knows it but then let him or her know you’ll go out of
    your way to obtain the product. Make each of your customers feel
    special. Always surprise the customers by giving them a little more
    than they expected.
  • Find lots of little ways to make doing business with you a
    little better. Give a warmer greeting, provide a better and more
    informative display, give them a folder of information to take
    away. Have a live display and serve coffee or tea, soft drinks and
    cookies. Always make sure your showroom is clean and up to
  • If you don’t know the answer to a question, say so. If a
    customer wants a special stain or special cabinet, don’t speculate
    and don’t call later. Call the cabinet supplier while the client is
  • Always run a sale, promotion, open house, demonstration or
    other off-beat event. Make customers keep coming back, even
    if for no other reason than to see what you are doing next. The
    shopping process for a kitchen or bath usually takes a consumer
    many months. Try to make as many impressions over those months as
    you can. In addition, create events to bring your customers
    together with prospects (and even strangers). Saturn,
    Harley-Davidson and Lexus have all been particularly successful
    with this approach.
  • Give your customers incentives to engage in word of mouth.
    Create a reward, discount or other incentive for bringing in a
    friend, and share that incentive with both the referrer and the
    person referred. Run a special sale or make a special offer that is
    for existing customers only, but allow each existing customer to
    bring one friend. Give special offers that can be honored only
    through the friend.
  • Capture testimonials and endorsements and put them in your
    promotional materials. Consider producing a cassette, videotape or
    streaming video of your enthusiastic customers talking about their
    experiences with each other. Burn these on CDs or put this on your
    Web site.
  • Be sure to check in regularly with customers who have signed
    contracts and are waiting for cabinets; they often feel as if
    they’ve been forgotten. Check in daily with clients during
    installation, as well. If you’ve torn out someone’s kitchen, give
    them coupons for restaurants or loan them a portable kitchen. If
    you’re remodeling a master bath, give coupons to a day at a spa, or
    a stay at a motel.

Don’t let them think the sale is “over” for you just because the
contract has been signed.

Silverman even advises giving your prospects a list of
competitors whenever you’re booked up. “Funny thing almost
everybody waited,” Silverman observed. “Only the best could be that
secure, which is exactly what a client said to me.”

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