CHICAGO — August 1, 2006 — It's all the rage in the marketing world and is described
by some as world's best-known marketing secret. So is "word of mouth marketing" something that you should
be looking at to help grow your practice?
To many insurance and financial advisors, word of mouth marketing probably doesn't seem like a radically
new concept. In fact, when asked "How do you acquire new customers?" many independent insurance agents and
financial advisors will often say that word of mouth marketing already plays a big role in new client
acquisition.
But when asked "What do you do to stimulate word of mouth marketing?" the response is usually a shoulder
shrug. Like the weather, they say, it just seems to happen.
The new discipline of word of mouth marketing takes a more systematic approach. It starts with
deconstruction. In the academic world, deconstruction means discovering the underlying assumptions, ideas,
and experiences that form the basis for any given thought or belief.
Towards that end, the marketing deconstructionists have put word of mouth marketing statements under
the microscope to see what triggers them and how they can be replicated.
After all, every positive word of mouth statement for your practice is effectively a new salesperson
who's out working on your behalf — and the good news is there's no base salary or commission for that
salesperson!
When all's said and done, word of mouth marketing boils down to creating enthusiasm within your customer
base and getting them to talk about you to others. But how does that happen and how can you make it happen
more often?
It's time for a simple thought exercise. Take a look at these statements and try to think about their
genesis. How did the spokesperson end up giving these endorsements?
- "If you are looking for a good financial advisor, I've got a great one. He's really done great
work for us."
- "Congratulations on starting your new business, and we are pleased that you've chosen us for your
banking needs. If you need help with payroll, legal, insurance or other matters, I've got a network of
helpful contacts I can put you in touch with."
- "I met a fellow the other day who might be worth your talking to. He's a member of a professional
organization I belong to and I think you might get a lot out of having a conversation with him."
These word of mouth statements don't happen by accident. Here are ten principles you can apply to build
a flood of word of mouth marketing buzz that will help you take your agency to the next level.
- You Can't Be Invisible — It's a good bet that recluses and introverts don't benefit much from
word of mouth marketing. In order to be talked about, you need to be seen and heard. If you tend to stay
in the office, it's time to get out. Volunteer to speak at a local business organization. Better yet,
start your own organization. Whatever you do, be out there, be visible and be interesting.
- Create a Referral Network — Reach out to symbiotic and noncompetitive companies in your
neighborhood and offer to trade referrals. For example, an insurance agent might ask a financial planner to
agree to mention his or her insurance business. In exchange, the insurance agent agrees to tell his clients
about the financial planner. It's win-win. Of course, before you recommend a professional — such as
an attorney or accountant #3151; be sure you know that they offer good service.
- It Doesn't Matter What They Say About You — If one client of yours tells a colleague
that you are a great golfer or tennis player, that may be enough to generate some interest that ultimately
can lead to new business. Your client doesn't have to say "I know a phenomenal financial advisor" or offer
up any such direct endorsement — although that would be nice. So, as you think about word of mouth,
think about what makes you worth talking about and then promote those compelling points of interest
about you and your business.
- Great Customer Service Earns Customer Respect — It goes without saying that people talk
about customer service when it's at either extreme — phenomenal or horrible. Clearly, you don't
want negative word of mouth, which is what happens when your service to your clients stinks. At the other
end of the spectrum, think about how you can "surprise and delight" customers with incredible service.
Studies show that good service isn't rewarded — you have to do something truly exceptional and beyond
the call to generate word of mouth referrals.
- Do Something A Little Bit Edgy or Clever — Nobody remembers things that bore them, and
they certainly don't talk about them. To generate word of mouth marketing, you've got to do something
unique. A financial advisor I know that used to send out traditional holiday cards recently started
sending his customers a turkey instead. You can bet that his word of mouth marketing around town increased
significantly after he started being a little more edgy.
- It's Not Who You Know. It's Who Knows Who You Know. — It's easy to meet people, but
sometimes it's hard to meet the right people. When you are trying to market to specific individuals,
think about who they know and try to develop relationships with those people. Look for well-known
influencers who will spread the good word about your company Eventually, their word of mouth mentions
with your key target customers may be what finally gets you in the door.
- People Must Like You — This may be a "blinding glimpse of the obvious" but people will
tend to mention you in conversations more if you are a good and decent person. If they dislike you,
you certainly won't get a referral even if you are stellar at what you do for a living. To be liked,
you need to:
- Be Interesting — Beyond being likable, you need to be interesting. Every time
you have a conversation with someone, they are a potential source of focused word of mouth
marketing only if you can get them to the point where they understand what you do and what
value you give clients. If asked what you do for a living, don't say "I sell insurance" but
rather say something like "I help individuals like you avoid making costly mistakes that
can potentially ruin their lives."
- Communicate — Beyond simply being out there and visible, you need to keep
track of how often you communicate with your prospects. Do they hear from you once a year or
once a month? The more you communicate with people in your community, prospects and others,
the more likely they will be to talk about you.
- Don't Overreach — One dentist in a nearby community has a reputation for
showing up at town meetings and figuring out a way to mention his dental practice no matter
what the issue under discussion is. The first time he did it, I thought it was effective
word of mouth marketing. But after seeing him do it at every single meeting, it's become
quite annoying. By overreaching, he's gone from winning prospective customers to actually
alienating them!
Having read these tips, you may still think that word of mouth marketing sounds a lot like
traditional marketing. But, think again. Take a look at these ten principles of word of mouth
marketing and see how many you are doing. If you're only doing well on 6 of the 10 or less,
you've got a ways to go. It's time to start taking word of mouth marketing seriously.
At SurePayroll, we frequently ask our existing customers whether they would refer a friend.
By monitoring the percentage of customers who are willing to make a referral and working to
improve that metric, we've been able to acquire many new customers. It all started with a commitment
to improve our word of mouth marketing.
Remember, word of mouth leads are better than any other lead you can acquire. Compared to leads
that come from advertising or cold calling, they are easier to close, offer fewer objections and
tend to have a strong sense of loyalty over time.
Michael Alter is president of SurePayroll, a payroll outsourcing firm that processes and remits
payroll taxes for over 4,000 independent insurance agencies and financial advisors across the country.
For Media Inquiries Contact:
Ken Gaebler
Walker Sands Communications
www.walkersands.com
Phone: (312) 543-0654
Email: surepayroll-inquiries@walkersands.com
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