MINDING YOUR OWN BUSINESS

by Don Taylor

Don Taylor is president and CEO of Data Staar Communications in Amarillo, Texas, and co-author of Up Against the Wal-Marts and Solid Gold Success Strategies For Your Business. He can be reached at P.O. Box 67, Amarillo, TX 79105.

No advertisement carries as much weight with potential customers as a personal referral. A satisfied customer who tells others about your business is your best salesperson.

Every business inspires some word-of-mouth recognition. Some create rave reviews of their products and services, while others generate only bad publicity.

A business may inspire a neutral response from customers, but this is a dangerous position to be in. If your customers aren't so sold on your quality that they are telling others about it, they are good targets for your competition.

Word-of-mouth advertising doesn't just happen and it isn't free. However, you can influence it with little money and only moderate amounts of time.

Referral business can make your cash register ring and your profit margins sing. The best part is that it doesn't increase your advertising budget. You may wish to redirect some of that budget to provide incentives for referrals or thank-yous for those received.

Here are some thoughts on building a good word-of-mouth referral system:

• Your customers are talking. The first step in generating positive word-of-mouth referrals is to realize that some discussion of your business is already happening. Your customers are telling others about your products, service and value right now.
• Your offering must be top notch. To inspire positive customer response, the quality and value of your products and/or services must be notable. A "me too" offering just like the competition's will never generate rave referrals.
• Your employees can give you a boost. Employees talk about where they work. They can make you look good to prospective customers or they can undermine your success. Use special incentives to help them understand they are valuable in the word-of-mouth process.
• Reward your customers for referrals. First, you must find the source of the referral. Once you know who referred a new customer to you, you can determine a reward. For some customers, it may be a special discount, a free meal or a cash award. Try a few to see what works.
• Work on cross promotions. Good words from another respected small-business owner also carry weight. When you cross-promote with non-competing businesses, you both can gain new customers. Be careful to select businesses to work with whose reputation is as good as yours.
• Don't underestimate your personal influence. Spread the word about your own business. Use your business cards. Create a good 10-second commercial. Look and act like a professional everywhere you go. If you have specialized knowledge that might interest others, volunteer to speak to service clubs and organizations in your trade area.
• Don't depend exclusively on word of mouth. You need a strong promotion program even if your referrals are good. Be consistent in your advertising. Your print ads should echo what your customers are saying. List the good aspects of your company. Tell them, tell them again and then tell them one more time.
• Don't expect instant results. Positive word-of-mouth advertising is a continuing process. You build strong, positive referrals one satisfied customer at a time. Remember that your long-term goal is to have everyone in your area talking positively about your business.