85% of Small Businesses Get Customers Through Word of Mouth

How small businesses generate word of mouth

Verizon, in conjunction with Small Business Trends, conducted a survey of Philadelphia small business owners in May of 2014.  One of the questions was:

How do your customers find out about your business?

The answer was telling – and not because it was a surprise.  It was telling because it is almost exactly in alignment with a survey we conducted online here at Small Business Trends almost a decade ago.

By far the most common way customers learn about a business is from word of mouth, according to the small businesses in the survey.  Eighty-five percent of the small businesses surveyed said customers learn about them through word of mouth.  The chart above shows all the responses.  As you can see, no other type of marketing or advertising even comes close.  Search engines come in a distant second at 59%.  Everything else is far behind.

Back in 2005 in our survey, 83% said that referrals (i.e., word of mouth from existing customers) were the number one way of getting customers.  The results were very consistent.

In one sense it’s striking that the method that is (a) most personal, and (b) costs the least in out-of-pocket expenditures, is the top method of attracting new customers.  After all, you’d expect that by throwing money at the problem via expensive advertising, and through methods that scale to reach many, you’d get greater results.  At least… that’s what you might think.

But in another sense, it’s completely predictable that word of mouth is the number one method of attracting new customers. We small businesses are all about the personalized approach.  With small businesses, it’s not about casting a wide net, but rather about connecting with a select number of customers, enlisting their trust and loyalty, and having that positive impression spill over among their circle of friends and colleagues.

That said, what does it suggest about steps you should be taking to increase and leverage word of mouth?  Here are four items for your To-Do list to increase word of mouth:

1. Check your business in Google and Bing at least once a month.

Even if search engines weren’t the #2 way customers have of learning about a small business, keep in mind that word of mouth spreads online as well as offline today.  Your customers are online today, and even if you run a local brick-and-mortar business, chances are they check you out online.  In other words, word-of-mouth today goes well beyond Mary Smith talking during exercise classes to a friend about your new restaurant.

If there is something negative online, it’s not a question of burying your head in the sand.  You need to be aware, so you can fix it.

Make no mistake, you can fix many negative impressions, such as customer complaints or negative reviews.  But first you have to know about them — and not be blindsided or ignore them because they’re too painful to confront.

Once you know about them, you can contact the customer, leave unemotional explanations if the information looks incorrect, or seek out more positive reviews to convey a more balanced impression.

 2. Conduct a regular customer survey to learn what your customers REALLY think.

The Net Promoter system is right on point here.  The Net Promoter scoring system asks on a scale of one to ten, “How likely is it that you’d recommend us to your friends and colleagues?”  The ones who are very positive are called Promoters.  The ones who are negative are called Detractors.  Net them out, and you have a Net Promoter score.

Today, with online survey tools (some of which are integrated with the software that manages your house email list), it’s not hard to discover and keep track of your Net Promoter score.  Increasing your Net Promoter score gives you something for your team to rally around and set improvement goals.  So by all means, start measuring and analyzing.  Discover what is making Detractors out of some, and Promoters out of others.

Not only do you want to eradicate what’s turning people into Detractors, but more importantly you want to understand what your customers value so much that they are wildly enthusiastic about your business.  When you figure out what turns customers into raving fans, then you know what to do to get more of them talking about you more.

3.  Communicate and reinforce to employees the value of raving fans.

You might think it’s obvious to your employees that they should be trying to make customers ecstatic.  But I’ve been in business long enough to know that employees take their cue from the top.  If you spend a lot of time focusing on solving negative complaints, you may be inadvertently sending signals that customer service only matters when there’s a complaint.

Instead, you should be sending signals to get ahead of the curve.  Customer service matters BEFORE someone gets upset, when you have the opportunity to turn someone into that raving fan of your company.

Spend some time explaining to employees where most new customers come from and how valuable it is to have existing customers who love your company.  Don’t assume that your employees actually pick up on that.  Show your appreciation publicly when they go “above and beyond” to delight customers.

I used to think it was corny when companies had mission statements that said “we delight our customers.”  I would think, ‘Everyone knows that you should be delighting customers!’

But then I realized that everyone doesn’t necessarily believe that — unless you talk the talk and walk the walk. The reality is, your employees at all levels need to hear the message repeatedly.  They need to believe that YOU believe it.

4. Create easy ways for customers to share word of mouth.

This is where traditional marketing and advertising can support and amplify customer word-of-mouth.

Consciously develop initiatives that get happy customers talking.  Make it easy for them to share their positive impressions.  Also, make it easy for existing customers to refer their friends, family and colleagues.  Some tactics that can help are:

  • Specifically ask for testimonials.  Many customers are willing to give testimonials — but they are busy.  You have to nudge them, without irritating them.  This could be done in a phone call saying, “Glad you’re happy.  Feel free to refer any colleagues to us – we’ll take good care of them.”  Or send a followup letter or email with a thank you and gentle nudge.
  • Suggest easy ways to leave testimonials.  Be prepared to suggest quick and relatively painless ways to give testimonials. If you are a B2B service provider, then ask people to recommend you on LinkedIn.  The process is pretty quick and easy there.  Or invite a customer on to a live Google Hangout or Skype call, and video a brief testimonial.  Or ask them to leave a brief star review on your Facebook Page or Google+ Page.
  • Provide referral cards.  Have a preprinted card your customer can leave with a friend.  Even leaving behind several business cards so they can hand one to a neighbor who may need your landscaping services, helps.
  • Offer “refer a friend” links on newsletters.  If you deliver a beautiful email newsletter, make it easy for people to share that and at the same time you may gain a new subscriber who eventually may become a customer.

These and other tactics will increase the likelihood of positive word of mouth being spread by your existing customers.

Remember: while word of mouth is something your customers share, it’s not out of your hands.  What you do and don’t do, has a huge impact on word of mouth.

See also more tips on how to create word of mouth for your business.  Also, check out the Verizon Small Business Blog which has more insights from this survey and more advice about customer service and word of mouth.

The post 85% of Small Businesses Get Customers Through Word of Mouth appeared first on Small Business Trends.

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Four Mistakes by Sales Teams That Drive Prospects Away

sales team mistakes

We've all been there – the cold, impersonal, off-putting dinner time sales call. You might even joke about how bad it was with your team at work. The joke however, may be on you because unfortunately, many sales people (some in your business) are repeating blunders on the sale over and over again. You need to root them out of your sales team's tactics.

These four are common mistakes made – avoid them in your business at all costs.

Sales Team Mistakes

Too Aggressive in the Early Stages

Sales people need to be go-getters and "whatever it takes to get it done" kind of people, but this passion, when unbridled, may scare off new prospects and cause customers to hesitate on your sales opportunity.

If a customer relationship is not established, a strong sales pitch may fall on deaf ears. Instead, re-channel aggressive sales pitch energy to develop a new focus on the customers. Remember that passion when you are on the phone calling lists of prospects. You will need it to get through the nine folks out of ten that decline.

By all means, push the envelope. Keep trying, but keep it friendly, positive and optimistic. Never turn your frustration or other negative emotions on your customers.

Two Ears and One Mouth

Sales conversations ought to follow the ratio of "listen twice as often as you talk." Sales people can use their wonderful minds and hearts to build rapport, but in the process, the conversation must always be about the prospect, not about the sales person.

Customers can sense when you care about something. To show that you care about the customer's needs and wants, stop talking and listen. Developing this skill of good listening requires you to make time in your life to hear what the customer is saying and "read between the lines" to uncover the customer's unstated needs.

At first glance, a new customer is unknown but in the process of getting to know them, you might discover that the customer has larger unstated needs that will present bigger sales opportunities. The only way to find out is by listening to them.

Asking if the Customer has a Price Ceiling

Asking the customer to identify a budget or a range of how much they want to spend may kill the new sale before it's final. Spend time talking with your new customer on topics of interest to them, and take an indirect approach to learning more about their business needs. This should eventually lead to the budget-related information you need to know, and is a much better way to go about it than brazenly asking about budget upfront.

If a sales person assumes too much, too soon, the prospect may hesitate, or worse, stop talking with the sales person. When talking about costs and willingness to pay, frame the conversation in terms of ROI (return on investment).  Talk about what the client will get, not what the client will pay.

If you can get the client excited about the positive difference that your solution will make for their business, they'll be more likely to spend the money, instead of (inadvertently) making them focus on how much they're paying and how much they're giving up.

Assuming that "No" Means "Never"

Often when the customer says "No thanks," what they really mean to say is, "No thanks, not at this time." Over the long term, keeping sales fires burning in your network is crucial to success.

Be prepared to flag customers who are definite "No" types, and move them out of your list of regular follow-up calls. But unless they've said "Please stop calling us," don't give up on prospects for the long-term. Check in with the "No" customers after six months. Things might have changed at their company, or their business needs might have changed.

Eliminate these four mistakes from your sales strategies and you will be on your way to getting more sales. Be patient, work for the long-term, and be sure to log responses from all customers you are contacting directly. Remove the definite "No, never" prospects to keep the list strong.

Most important: Listen, listen, listen to the customer. Make the conversations about them and not about you. If you focus on your customers' needs, you'll never stress them out or annoy them – and they'll keep coming back.

Phone Photo via Shutterstock

The post Four Mistakes by Sales Teams That Drive Prospects Away appeared first on Small Business Trends.

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Lookout! This Security Software Uses Selfies to Battle Phone Theft

mobile security software

You’re on a business trip or at an event. Suddenly you realize your phone is missing.

As a business owner, you probably have much more than vacation photos and a couple of personal phone numbers on your phone. (That’s bad enough, of course.)

But if your phone also contains important business information, confidential emails, credit card or other data from customers or clients, it could be even worse!

Lookout Mobile has created an aggressive security system the company says uses your phone’s own camera to take a “selfie” of the perpetrator. (Though without the perpetrators knowledge, so the company jokingly calls the photo a “theftie.”)

The company says the software will also automatically send that photo and the present location of your phone to you via email if it detects suspicious activities indicating your phone may have been snatched.

Customers buying Lookout’s premium package get the new security features. Those who have already downloaded the security system’s free version will also get this new feature grandfathered in.

The security system is triggered by actions perpetrators often perform after stealing a phone, David Richardson, Lookout lead product manager for Apple operating systems told C/Net.

These actions might include entering an incorrect passcode multiple times, removing the phone’s SIM card, trying to uninstall security, putting the phone in “airplane mode” or switching it off.

Actions that trigger the security precautions depend on limitations imposed by the phone’s operating system.

The software also allows you to immediately notify police and your carrier of the theft and also lock and wipe your phone’s data remotely. Of course, the system isn’t perfect, C/Net reports. For example, the phones wireless could be cut before it has a chance to send the alert.

This video gives a brief overview of what Lookout Mobile says is the new feature in action:

The company sells a personal premium service for $3 a month and a business package with price quotes available upon request.

The business account allows you to secure multiple devices connected to your company’s network, whether owned by you or your employees.

The company’s website explains:

“When it comes to mobile security it doesn't matter who ‘owns’ the device: Company data is company data and you need to protect it. Whether it's a company-owned or personal device, Lookout for Business helps you keep it all secure.”

Consumer Reports says mobile phone thefts rose to 3.1 million in the U.S. last year and recently Minnesota became the first state to pass a smartphone anti-theft law. The law puts more security on phones sold in the state but also more restrictions on phone resellers, including small businesses.

The post Lookout! This Security Software Uses Selfies to Battle Phone Theft appeared first on Small Business Trends.

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Amazon stirs smartphone launch talk with June 18 event

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Tablet maker DataWind plans to raise about C$30 mln in IPO

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As IPO nears, Alibaba preps employees for $40 billion windfall

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Ignore Gary Vaynerchuk. Focus On Niche Market Domination, Stop Trying To Be Like @GaryVee

 

 

 

 

 

 

 

 

 

Ramon often uses media super star Gary Vaynerchuck as an example of social media success.

Learn more at ScrewGaryVee.com - http://www.screwgaryvee.com

In one of Ramon’s presentations, where Ramon was referencing Gary Vee’s story and his book Jab, Jab, Jab, Right Hook (a must read), someone said “I’m no Gary Vee, he has lots of money and is very popular”.

We small businesses should STOP trying to be as BIG and popular as Gary but use Gary’s PRINCIPLES to dominate social content marketing and sales and marketing overall.

Gary was PERSISTENT and UNIQUE (tasting wine on snow!) as he grew the Wine Library. Every small business marketer can be persisten and unique in their social content marketing education.

Check out ScrewGaryVee.com – http://www.screwgaryvee.com for two short but important videos on why you should stop trying to get zillions of likes and followers and instead focus on dominating your niche market.

The post Ignore Gary Vaynerchuk. Focus On Niche Market Domination, Stop Trying To Be Like @GaryVee appeared first on SmallBizTechnology.

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If You’re a Startup, Keep These Few Things About Social Media in Mind

social media for startups

For any business, the first thing in mind is to reach out to its potential clients and your target audience. It used to be an extremely difficult task even a few decades back. But now, the Internet has transformed the world into a small place.

Platforms, such as social media websites, ensure that you can connect with people from all walks of life in no time at all. This is what’s making social media websites a favorite among business owners. However, if your business is a startup, there are a number of things that you need to keep in mind while using social media. Every step needs to be undertaken prudently to ensure that they do not have any negative impact – but instead can drive the business forward in style.

Social Media for Startups

Coordinate All the Platforms You Use

Want to be successful on social media? You have many platforms to use and you might focus on a couple of them.

However, to get the most out of them, you need to use them all. The major thing you need to do while using all the social media platforms is to coordinate them properly. If each social media page remains as a stand-alone effort on your part, they are not likely to deliver the results that you desire. Hence, your efforts will not be of any help.

However, it can be an easy task if you are focused. All you need to do is integrate your social media with your blog and website.

Optimize Your Blog and Website

Both your website as well as your blog need to be optimized for social media. You should use social media icons, which should be displayed prominently on pages. It will help to ensure that readers will share your page if they like your content. This, in turn, will result in more visits.

Social media platforms should have links so that visitors can go directly from these pages to your website. This can also be a good way to increase traffic to your website.

Pay Attention to and Participate in Social Media Conversations

Whether it’s a large, well known company or a startup such as yours, paying heed to social media conversations is a must. Almost all the time, someone is speaking about your brand. You need to know all of them.

Moreover, you should also participate in these conversations. To drive your business to perform well, it is important to be active on social media websites. You should ensure that you reply to all comments and queries that are posted on your blog and social media posts.

However, you need to take a perfectly balanced approach to monitor what you are saying on these websites. These small actions can play major roles in helping you connect directly with your potential clients.

Join Relevant Groups

When you are planning to manage social media for a startup business, the first thing should be to spread the word about your website among your target audience. And there are quite a few ways to do it. You should try to connect with as many people as you can. If you find some of them to have an interest in what your business offers, even better.

The easiest way to find people interested in your offerings is to join a group on the subject. Take part in discussions on topics related to your website. And, if possible, refer to your website in a veiled manner. You should try your best to ensure that people are visiting your website, but your efforts should not be so blatant that they appear as a publicity strategy.

Spread the Word

Being a startup, you should focus your efforts on making your company more and more popular among the people. Are you ready to spend some increasing the publicity of your company? Posting ads on different social media websites may turn out to be an outstanding decision. It lets people know about the existence of your company, its offerings, and so on.

Moreover, you should also participate in different conversations in groups and pages. Mention your company every now and then. This can be a useful strategy to let people know about the existence of your company, which is a new organization. It will help you in the long run to make the most out of social media.

Include a Call to Action

These days, the call to action is a must. It is important for you to include a call to action at the end. You can ask readers to follow your business page on Facebook, Twitter, or other social media platforms.

You can also ask them to share among their friends and peers, so that it can act as a form of indirect publicity.

Start Small to Have Full Control

Social media is an excellent platform to connect. And once you have identified your target audience, it is possible to use it for the best results. However, always remember that social media is a vast platform. You are a startup and still new in the field, so it is always better to start small. You need to have a grasp on all your activities on social media.

For any startup, social media can turn out to be a great way to move forward. If you are the business owner, you need to undertake every step involving  social media platforms prudently. It can turn out to be a game changer and create a strong base for your company.

Social Media Photo via Shutterstock

The post If You’re a Startup, Keep These Few Things About Social Media in Mind appeared first on Small Business Trends.

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