Word of mouth marketing is the most effective form of marketing, and businesses should strive to create products or services that people naturally want to talk about and share with others.
Publicly sharing elements of a product or service can greatly enhance word-of-mouth referrals, and by allowing customers to experience and showcase their participation or use of a product in a public way, the mere act of participation becomes a natural form of referral.
Deep dives
Maximizing Word-of-Mouth Marketing
Word of mouth marketing is the most effective form of marketing, and businesses should strive to create products or services that people naturally want to talk about and share with others. By focusing on creating valuable and shareable elements within their offerings, businesses can encourage customers to constantly promote and recommend their brand to their social media audiences. This can be achieved by bundling in free digital education or other valuable resources that incentivize customers to spread the word about the brand without the need for discounts. Referrals can be enhanced by giving customers language and vocabulary to succinctly describe the product or service, ensuring consistent messaging when it is shared with others.
The Power of Public Participation
Publicly sharing elements of a product or service can greatly enhance word-of-mouth referrals. By allowing customers to experience and showcase their participation or use of a product in a public way, such as publishing their content or publicly demonstrating their engagement, the mere act of participation becomes a natural form of referral. This can be compared to someone getting a great haircut and proudly sharing the name of the barber. The goal is to create an environment where customers can easily showcase their engagement, thus generating more interest from potential customers who witness the public participation. Encouraging customers to use specific language or phrases when describing the product can amplify its exposure to new audiences.
Incentivizing Referrals Without Discounting
Instead of relying solely on financial incentives or discounts to encourage referrals, businesses can provide additional education, resources, and status to customers who refer others. Building a tiered referral program, where each referral unlocks new benefits, can gamify and incentivize customers to actively promote the brand. Rather than focusing solely on monetary rewards, businesses can offer exclusive access, special trainings, or other valuable assets to customers who refer others. This approach not only encourages more referrals but also helps to maintain customer engagement and loyalty. Additionally, providing customers with the ability to gift discounted or free access to friends or family members further enhances the referral potential.
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In episode 15 of Espresso Hour, Ship 30 for 30 Captains Dickie Bush and Nicolas Cole talk about their marketing funnel, specifically relating to email.
(00:00) Intro (02:40) Difference between referrals and affiliates (03:39) Why word of mouth trumps every form of marketing (05:20) The power of languaging (08:27) How to get everyone talking about your product (12:50) The biggest tip for e-commerce and physical product stores (18:29) The RIGHT way to do affiliate marketing (23:05) Why financial incentives aren't as effective as you think (24:08) Ship 30s future referral plans (27:46) Winner of FREE Ship 30 cohort