Listen to your customers

Let Your Customers Do the Talking
By Paul Herbig

Which has the greatest influence upon a consumer’s purchase decision?
a) Repeated Advertising exposure to the product and company
b) The Retail store where the good is purchased
c) The sales promotions surrounding the good
d) A price reduction in the good

The answer is (e) none of the above. The greatest influence upon a buyer is word-of-mouth, testimonials and opinions from those the consumer knows and trusts.

This should not surprise anyone. With the increasing sophistication of the consumer and his increasing weariness of the advertising message, credibility for advertising is a major concern for advertisers. Sales promotions are a plus but they are only short term fixes and not a replacement for long term loyalty. All of us love a sale but if we need the item now and no sales is ongoing, price becomes a secondary effect. And finally, the retail store is often seen only as a warehouse of goods.

Why wouldn’t word-of-mouth be important? Think back to your own decision making process the last time you purchased a major good (we typically are not discussing convenience goods or inexpensive items but higher priced goods. Even medicines fall into this category as the importance factor increases). Even before you started researching (be it internet, yellow pages, or newspaper) you probably called a parent, another relative, or a close friend whose opinion you value (and who more than likely has some expertise or prior experience in this area) and asked for suggestions on either how to go about the purchase or for particular brands they would recommend, You would tend to listen to their opinions and probably follow-through. Why wouldn’t you? Why should they steer you wrong? (Of course if in the past you received a suggestion for a good that was not satisfactory, chances are you are not going to seek out that person’s opinion again)

The opinions and referrals of existing customers are the best possible advertising you have. Your best sales force does not even work for you and better yet, does not cost you a dime. A few companies have recognized this fact for years. Harley Davidson has so loyal of following (they call themselves HOGS—Harley-Davidson Owner GroupS) they regularly meet and chat about their cycles. Saturn started out by attempting to establish a customer community by creating an elite club whose only members were Saturn owners. Picnics, meetings, outings, and other events were held to which the owners were invited. Apple users are such fanatics they have their own MacIntosh User Group meetings, which at times resemble an old-time religious revival. Unfortunately too many companies still have an adversarial relationship with their customers and wish to keep the arm’s length distance between them. They are missing out on the emotional high that energized customers can produce for you.

Amway has prospered in East Asia due to word-of-mouth marketing. In China and other East Asian countries, the personal relationship is key to the entire business. You do business with those you know and trust. Amway’s brand of relationship selling, door-to-door selling to neighbors and friends blended in beautifully with the Chinese emphasis on relationships. As a result, typical personal marketing and networking companies (such as Amway, Avon, Mary Kay, etc) have thrived in that environment. Their success is a perfect example of the value of word-of-mouth marketing.

When your customers are so driven they act as missionaries, going so far as to evangelize your products to the masses, on their own time, using their own money, their own usage and fervent positive attitude towards the product will dwarf by an order of magnitude any effort your own paid sales force would have made on new customers. If your current users are well known and respected by the would-be customers, so much the better for credibility. Credibility is centermost in the minds of most customers and having established it through a trust-worthy source is nine-tenths towards winning the battle.

Your best sales force are your own customers. Get them excited about your products, your service, your mission, and they will act as your marketing arm for you.