there are many in business who believe that word of mouth is the best thing since sliced bread. while there’s no denying its importance in any marketing mix, there are also challenges that receive infrequent mention. examine word of mouth carefully and you’ll quickly realize that it’s a “get what you get” endeavor. it’s not strategic like other forms of marketing — unless you’ve created a program that rewards the referral behavior you desire. the reality is that businesses who most favor word of mouth are also not big fans of investing in planning, branding, marketing, and sales.
the primary shortcoming of word of mouth marketing is a lack of accountability. consider an employed sales staff for a moment. when a salesperson misrepresents the company, there’s a sales manager or business owner to help get him or her back on track. with word of mouth, customers are empowered to pitch your business — often with no training and no consequence with regards to their performance. if all of your customers knew the product like you do, positioned your business for success as you would and promoted with balanced sensitivity, then it absolutely would be an amazing thing. unfortunately, this isn’t reality. yes, it raises awareness and grows revenue. no, you may not be thrilled with the exact shade of the outcomes.
the secondary failures of word of mouth are a diminished brand and/or competitive advantage. customers often simplify a product or service referral to what they value, which may not connect powerfully with all the audiences available to your business. some customers have odd or over-simplified reasons for doing business. others will go a step further by undoing any competitive advantage you’ve built through product development. for example, you have a top quality product and your customers are making price the reason to call you. in america, price follows quality. when a customer notes price first (or singularly), then s/he is communicating that quality isn’t a priority. if you’re in business to ensure a quality product, then my guess is you’re not comfortable with this message being prevalent.
if you’re indifferent to the above, then you’re being far too passive about the most important aspect of your business — marketing! is it healthy to have customers talking? absolutely. should you simply accept what they’re saying naturally? no. play an active role with customers and offer a program that incentivizes them to take action as you’d prefer. it’s your business. you have the long-term goals. customers are simply trying to assist their friends to make a smarter, near-term buying decision. they will gladly adopt and communicate better reasons for doing business with you.
