Dear Champ,
Every time I sit down to go through my marketing budget, I get worked up because it seems like money is going to so many different things, and I’m not sure I’m seeing the ROI. There has to be an easier way to promote my business!?!

Margo
Allentown, Pennsylvania, USA

Margo, Margo, Margo. Didn’t you know that marketing budgets should be vast to the point of having no upper limits? Nor did I.

Even with all of the advancements in technology and communication/marketing mediums over the years, at the core, we are no different than we’ve been since the dawn of time.

The most important marketing tactic you need to grasp is that of Word Of Mouth (WOM).

According to Nielsen research, 92 percent of consumers trust recommendations from friends and family more than any other advertising.

So, while recent studies show that chief marketing officers will spend nearly 20 percent of their budgets on social engagement within the next three years (three times the amount currently spent), the digital-only approach accounts for just 10 percent of consumer conversations.

No matter what kind of marketing and advertising budget you have, you will never be able to fully control WOM. However, there are a couple of general approaches to attempting to manage your word of mouth reputation.

1. Build: Build a strong foundation based on positive customer experiences, trust and service satisfaction.

2. Influence: Attempt to get people talking through customer loyalty programs/clubs, advertising, teaser campaigns, etc.

3. Attack: Use paid recommendations, friend get friend schemes and other more aggressive tactics.

You can’t go wrong with the first approach: build a strong foundation. If you can continue to deliver on your brand promise, and create positive customer experiences, you’ll be a WOM pro without even thinking about it. Supplement that with a little of the second approach and you’re on your way to creating a referral stream.