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Word of Mouth - Lifeline to Business
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Career Muscle
By Career Muscle
Published on 07/2/2007
 
Not every one has "big bucks" to invest in a business. However, applying common wisdom, insight and doggedness can reap rewards for cash-strapped entrepreneurs. Apply the principles of good customer service, and reap the rewards that satisfied clients will direct your way.

Word of Mouth

Not every one has "big bucks" to invest in a business.  However, applying common wisdom, insight and doggedness can reap rewards for cash-strapped entrepreneurs.  Apply the principles of good customer service, and reap the rewards that satisfied clients will direct your way.

I started my first online business in February 2005, using a free web host service.  On 17 March 2005 I established my first domain name (www.progressenterprise.com) and commenced the long term task of gaining visibility on the internet.  The total establishment cost was around $200 (Australian) at the time.  As a salary earner and co-provider I was not in a position to take financial risks.

My product line (A "how to" Resume / Curriculum Vitae e-book and a suite of Resume / Curriculum Vitae frameworks (templates) are intellectual property and therefore did not require start up costs for tooling, parts, distribution networks etc.  However, the products are a once-off sale to each customer.  Once purchased, customers have the resource permanently and do not need to return.

I have done all the usual things (and then some more!) to increase the profile of the website in search engines.  (That is rich material for another article!)  The ongoing daily attention and maintenance has produced success in that I average 26 - 30 "organic hits" per day on my site.  This of itself does not generate a sustainable income, although it is a significant achievement for a small business.

The really big news is that most of my sales do not come from organic sources!  Many of my customers simply type my URL in their browser and come straight to me.  I wondered why so much of my business was directly from self-referrals until I started asking customers for post-sale feedback.  They tell me the same story, over and over, in a variety of different ways.  It goes something like this…

"I was chatting with a colleague/friend/relative at my work/sporting event/party and they mentioned that they had bought some CV "templates" from your site.  They found them really easy to use and modify and got their next job/promotion by using them."

As a service industry, customer satisfaction is paramount to my success.  I cannot ask for a better source of clientele than satisfied customers!  (The "down-side" is that some satisfied customers simply pass on the purchased items to others, effectively pirating the intellectual property from www. progressenterprise.com.  In the absence of a better alternative, I take this as a back-handed compliment.)

Satisfied customers are credible salespeople with nothing to gain.  Listeners factor this in to their decision to purchase the resources I provide.  This kind of feedback is the biggest source of my sales and I treasure it.

Ironically, a number of people give critical feedback on the layout or design of my site.  Consequently, I have experimented with a variety of layouts and designs, but sales continue to come in regardless of what the site looks like.  This reflects the power of "word of mouth" and the faith that most people place in the good experiences of others.

I have been pleasantly surprised at the application of the "word of mouth" principle at a macro level.  I recently discovered a completely independent website which simply compares the range of products and services available across the internet in my area of expertise.  Imagine my surprise to find myself listed very highly in the top 10 services providers IN THE WORLD!  This has stimulated an increased level of business for me as I reap the "flow-on" benefits.


Word of Mouth - 4 Key Principles

How does one go about creating the climate for strong "word of mouth" referrals?  I have identified 4 key elements to success in this area.

  1. Be reliable.  I have an unproven suspicion that this is more important than quality or price.  Being reliable means being honest about what you can and will deliver, when you deliver and meeting all warranties or undertakings that are made with customers.  In the event that a customer has a difficulty in downloading my products, (regardless of whether the fault lies with my site or some other factor), I will respond directly to the customer and rectify the difficulty immediately.  I also ensure that I "add value" in some way (perhaps by providing another product in addition and at no extra cost).  Customers who are treated well and with respect are enormously forgiving.
  2. Offer a quality product, whether it be a physical product or a "virtual" service, as in my circumstance.  When they utilise the frameworks and resources I provide, clients understand that they are drawing on decades of training, experience and wisdom in my area of expertise. (I do not claim to be wise about many other things!)
  3. Charge a fair price.  Customers do not expect products or services for free.  In fact, they are rightly suspicious of "freebies" for which the source has no accountability.  However, the cost must be proportionate to the potential benefit.  Again, without the benefit of full-scale market research, my enquiries indicate that price is often less important to customers than quality and reliability.  I do not encounter many individuals who want to build a career on a "$2 Shop" Resume.
  4. Offer extra.  I make my expertise available in the form of articles on my website and as a member of various forums, where I can offer free assistance directly to individuals.  Many of these contacts come to my website at a later stage and make a purchase based on this communication.  There is no need for me to prompt, ask or beg!

The reason customers buy products are many and varied.  However, "word of mouth" remains the strength of my business.  From small, low risk beginnings I am currently enjoying a level of success which I would never have anticipated in the early days. 

I encourage you to apply the principles of good customer service, and wish you the wealth that satisfied clients will direct your way.