Small Business Word Of Mouth

Much of the purchasing power for both the United States and Canada is held in the hands of small business owners. They hold the purse strings, can make or break your company, and their difficulty to reach make blogs such as this one popular.

Word of mouth advice is how entrepreneurs end up making purchasing decisions. Sure they may have seen your advertisement on TV or in print, they have probably already checked out your website to learn more about your product, but at the end of the day, a good or bad recommendation from another entrepreneur is likely going to be what makes or breaks their decision to move forward.

How can you get the small business community to spread the word about your product or service?

1) Identify and support your champions
With any product there will be champions - the hardcore users who love using it and tell their friends about it. They are seen as experts by their peers and are often called for advice on which company to choose. The good news is with today's technology it is easier than ever to find and support your champions. Who is blogging about your company / industry? Whatever size your industry is, there is somebody who is blogging about it. Support these people with new product information, special events, rewards, recognition, and a personal connection into your company. Make them feel important and give them the information they need to show off your products - and they will!

2) Follow up with existing customers
With their smaller budgets, SMBs will not have the same number of transactions with you as their larger counterparts. Depending on the product you are selling it could be years between purchases. Do not forget to follow up with your existing customers regularly. Make sure they are enjoying your product and let them know of any new specials you are offering. If they are not ready to buy again yet, they will have the knowledge when their peers ask them about which provider to use. If your product has broken down on them and they have not heard from you in years, you are not likely to get a warm recommendation.

3) Ensure proper damage control
While positive word of mouth will spread as you establish as solid reputation in the SMB community, negative word of mouth will travel even faster. Almost even conversation I have with small business owners at one point ends up on a negative tone as they attack a company who they feel has done them wrong. Whether it be their phone provider, bank, or accountant small business owners tell their friends about their bad suppliers. If you have a negative experience with a customer or even have to let them go, make sure to leave them with the most favorable impression possible of your company. If it requires making an apology, giving a discount / credit, offering a refund, shipping a new product, or any number of concessions, the cost will be more than worth the negative word of mouth your company will receive otherwise.

Entrepreneurs Don't Trust Corporations

The Word of Mouth Marketing Association recently put out a report stating that 76% of consumers think that businesses do not tell the truth in their advertising.

They went on to discover that the number one way consumers learn about new product ideas is through word of mouth. It helps cut through the advertising clutter and the increasingly busy lives of consumers.

92% of consumers cited word of mouth as the most common way they discover new products, up from 67% in 1977.

I see it happening all the time in my Mastermind Groups. Small business owners are facing challenges with their companies from sales to financing to product sourcing. A recommendation from a fellow entrepreneur who had a good experience with a supplier almost always closes the deal.

Is your company doing enough to encourage positive word of mouth?

Check out these resources for more information on how to build your word of mouth effect.