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5 Ways Retailers Can Increase Word of Mouth and Referrals

Offer exceptional products and customer service

When you have truly outstanding products and services, many of your customers will talk up your store all on their own. So before you cook up word of mouth gimmicks or referral programs, make sure that you’re blowing away shoppers with fantastic products and customer service.

Invest in your merchandise. Use high-quality materials, see if you can present them better, and highlight the ways your products are superior to others.

In the same vein, you should also invest in your staff. Allocate resources for staff training and happiness. Come up with ways to keep your employees engaged and motivated.

You’ll find that these investments can pay off in the form of delighted, raving customers who tell all their friends about you.

One example of a retailer that’s focused on product and service quality is American Giant. Rather than spending a ton of money on advertising and marketing, the retailer invests in developing high-quality merchandise. American Giant believes that when they provide exceptional products and customer service, customers will naturally spread the word.

As they say on their website:

The pressure to attract consumers leaves most apparel businesses with bloated marketing budgets. We have a different approach. Instead of investing in billboards and commercials, we invest in quality product and great service with the hope that our customers will become our advocates. We’ve found that if we can exceed customers’ expectations, they want to share and spread the word for us.

This strategy worked out great for American Giant. One of their main products, the classic sweatshirt, was dubbed the best hoodie of all time. At one point, the retailer couldn’t make the sweatshirts fast enough, and shoppers had to wait months just to buy it. Not bad for a company that doesn’t advertise.

Spell it out for customers

Sometimes, you need to give people a little reminder to spread the word about your brand. You can do this in-store by putting subtle prompts around your shop to get people to talk about your products.

For instance, some apparel retailers have hashtag stickers in their dressing rooms to nudge customers into sharing photos of themselves while trying on the store’s clothes.

New York & Company, for example, has hashtag decals posted on their fitting room mirrors.

Other merchants are more explicit with their word of mouth efforts. Take, for example, Sleeping Baby, an online retailer that sells swaddle transition blankets for babies. Whenever someone buys their products, Sleeping Baby encloses a postcard with each delivery, thanking customers for the sale and requesting that they post a photo of their baby with their products on the company’s Facebook page.

Because of this, Sleeping Baby’s Facebook page is filled with customer photos and comments. Aside from getting people talking, having all that social proof also increases the likelihood that people will buy.

The key takeaway here? You can get people talking (or posting) just by reminding them to do so. If you have amazing products that customers love, ask them to spread the word. There’s a big chance that they’ll say yes.

Identify and engage brand advocates

Recognize that people have varying word of mouth potentials. Some shoppers are more likely to make referrals compared to others. The key is to identify individuals who are most likely to recommend you to their friends, and then reach out to them.

How do you zero in on these people? Turn to your best customers. Go through shopper data and find people who have purchased and interacted with your brand the most. From there, create a campaign to encourage word of mouth and referrals.

One brand that did this well is Sony. According to Marketing Sherpa, to increase signups for its branded credit card, Sony identified their most engaged customers and sent those people an email incentivizing them to refer their friends.

For testing purposes, the company also sent the same email to a control group of non-influencers. Upon doing this, Sony saw that the influencer segment generated results that were 2.8 times better than the control group.

Consider doing something similar in your business. Rather than targeting everyone with a word of mouth campaign, do research on your top customers. Determine who they are, and figure out the best way to approach them.

Run an influencer campaign

Pay attention to the people that your customers are listening to. Aside from their friends and relatives, are there bloggers, social media personalities who influence their buying decisions? Find these individuals and use their platform to spread the word about your brand.

One example of a retailer that tapped into influencers is Kohl’s. Last year, the department store partnered up with a fitness-centric influencer network called FitFluencer to launch the #MakeYourMove campaign, in which they encouraged FitFluential bloggers to publish posts containing fitness tips and product recommendations from Kohl’s.

Looking to use influencer marketing to boost word of mouth? Start by finding relevant influencers in your niche. You can do this on your own by asking customers about the people they follow online. Alternatively, you could use services such as Speakr or Women’s Influencer Network to connect with influencers.

Build communities

Getting people together through events, clubs, and whatnot can organically generate word of mouth. When people are part of a community, they’re more likely to spread the word — and even recruit — like minded individuals.

One retailer that’s doing a stellar job at fostering communities is Lululemon. The retailer regularly holds local classes and events, and these initiatives bring people together. Lululemon events are fun and educational, so attendees get a ton of value out of them.

Another example is American Express. The credit card company runs Open Forum, a website that provides insights, inspiration, and connections to help entrepreneurs grow their businesses. In addition to thought leadership articles, the site lets users ask questions and seek advice from fellow members on just about anything about their business.

Through Open Forum, American Express has managed to empower entrepreneurs, while building their brand at the same time.

If you have a highly engaged customer base, you’re in a perfect position to implement a community building initiative. Come up with ways (hint: ask your customers) to bring people together in a fun or even educational way. Be it through meet-ups, online groups, or classes, see if you can launch something that would cultivate relationships and get people talking.

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4 easy tips for building a successful brand

So, just what is your ‘brand’? Wikipedia defines a brand as the ‘name, term, design, symbol, or any other feature that identifies one seller’s product distinct from those of other sellers’.

Many business owners confuse their brand with their logo, but serious businesses understand that their brand is so much more than a graphic.

Your brand is how people – customers and potential customers – see your company as a whole and includes not just marketing, but things like customer service, pricing and quality of workmanship.

Here are four simple ways to grow a brand with lasting value.

1. Make customer service your point of difference

They say a smile costs nothing, and the same goes for great customer service. If you don’t have the marketing budget of some of your bigger competitors, customer service is one way you can really differentiate yourself – for free.

With a team dedicated to providing great customer service, you can strengthen your relationships with your customers, even when these relationships are at their most fragile. You can show your customers that you, and the brand you represent, care about them because you listen and respond quickly.

Many customers prefer to do business with small to medium-sized businesses even if it costs more, because having a relationship with a person, and putting a face to the business, is meaningful to them.

2. Keep your brand promise simple

Steve Jobs once said, “Simple can be harder than complex; you have to work hard to get your thinking clean to make it simple. But it’s worth it in the end, because once you get there, you can move mountains.”

Your brand doesn’t need to be multi-layered and complex. Your customers shouldn’t have to think about what you stand for. Apple builds beautiful devices that are easy to use; they never try to be something they’re not.

You should always try to do the same with your brand, no matter how big you are.

When developing a brand promise, think about how you want to be defined. Is it by the speed, price, or quality of your service? Don’t try to be fast, affordable and high quality. Having a simple brand promise is easier to deliver!

Companies that deliver on their promises are more likely to attract loyal customers and build strong brands. The brand must meet customers’ expectations and needs by giving them the differentiated experience it promised.

3. Be consistent

Once you have established your brand promise, you must ensure everybody in your company understands what that promise is.

Your management, field and administration staff should know what the brand they’re working for is all about, because they are your main brand ambassadors.

Amplifying your brand promise by ensuring it’s an integral part of all aspects of the customer experience is one of the easiest ways to build a lasting brand.

Your customers’ understanding of your brand is gained through a series of disconnected encounters with it: observing it on the side of a truck, seeing an ad in the local newspaper, receiving an invoice, dealing with field works on a site, and ringing the office to change an appointment.

Every one of these encounters must deliver a consistent customer experience to avoid a reality gap and a negative brand perception.

4. Add some value

Customers are your best allies when it comes to strengthening your brand, and their experience with your company shouldn’t end once they have paid your invoice.

In a digitally connected, socially aware world, having customers on your side gets you the recommendations, reviews and social proof you need to keep growing.

The rise of digital and social media means staying in touch with your customers is easier than ever.

Sending your past and present customers great content is one way to keep your brand at the front of their minds.

If you continually produce content that interests not only prospective customers but current customers as well, you can keep them coming back to your brand and build loyalty.

Sharing engaging, relevant content on social media is a simple way to delight customers and put them back into the sales funnel for future purchases. Start by learning what social networks your customers are on and the type of content they want to see, then share consistent, tailored content on those channels.

Building a brand with lasting value comes down to distinction – your ability to set your brand apart from your competitors. Focussing on customer service, keeping it simple and consistent and adding some value should be just the beginning.

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The Cheap Competition Conundrum: How To Stay Competitive In Your Industry

Tip 1: Automate your systems and processes

A lot of small businesses still do everything manually which results in a huge amount of time wasted on admin tasks and may potentially even create inconsistencies (human error!) in their process. An online project management system can be a great way of automating your workflow, reducing costs and increasing efficiencies. And regardless of your business size, you can find a system with the right features to fit your needs.

  • Compare product reviews; Third-party review sites like GetApp, Capterra and Trust Radius will help you get an unbiased opinion on different apps in the category you’re looking for. Just hit “project management” or “job management” in the search bar and you’ll be able to compare ratings and reviews for multiple products. If you’re a Xero user, check out the Xero Business Community for add-on reviews!
  • Visit the product website for more information; Once you shortlist a few likely candidates from the review sites, you should dig deeper into the individual products by visiting their respective websites. You’ll be able to achieve a better understanding of the product’s features here. Case studies and testimonials on the website will help paint a better picture of how the software will work for your business/industry. You will also have access to a free demo or video tutorials that will once again solidify your understanding of the product. Where possible, take advantage of free trial offers to really see whether the system works for your needs.

Great, now that you’re on the way to finding a great project management system, you need to turn your attention to other parts of the business that you can automate to make your life easier. One of the other key areas will typically be your marketing. Automating your marketing process will save you heaps of time, freeing up resource to do what do you do best and what you’re in business for in the first place! Tools like Mailchimp will help you sort out your email marketing needs while Buffer or Hootsuite will do the same for your social posts. And if you need a more comprehensive content management system, you can find what you need through one of those nifty review sites as well!

Tip 2: Upgrade Your Technology

Staying up to date with technology is critical to stay competitive and efficient – but this doesn’t necessarily mean you need a flashy budget to do so. Prioritise your technology needs. You can even consider selling old equipment (printers, laptops, iMacs and screens) at a discounted price to staff to recover some of the cost. If some cases renting gear may be more appropriate. When I worked at an agency, our motion department often hired camera equipment before we could justify getting our own drone, 4 years later!

Bonus tip: Implement changes slowly so it’s more affordable and your team has time to get used to the changes!

Tip 3: Move to the cloud

Still using paper to track your invoices or a clunky time management software from the dinosaur era? It’s time for an upgrade! Migrating to the cloud requires little or no investment, is relatively straightforward, and makes remote working a real possibility. We wrote more about the benefits of moving to the cloud inThe Ultimate Guide to Managing an Agency in the Cloud.

Tip 4: Consider the remote team

Before you start shaking your head, take a moment to seriously consider it! Remote working can be a great way to keep your operational costs low – hence helping you to be more competitive. Apart from low overheads, you’ll have increased flexibility (work from anywhere!) too. Plus with so much great technology to support our ways of working, if your team is scattered around the globe, collaboration through technology becomes even more of a reality.

You can find a comprehensive list of communication tools for working remotely in this post…because hey, at WorkflowMax we love remote working! So much so that we’ve dedicated an entire section of our blog to it! For more inspiration on how to make remote working work in your business, check out some of the posts on our Work & Wander section.

Tip 5: Re-examine your value proposition

“Think about what makes him laugh, or shake his head. Start a conversation. Picture him reading. Imagine the questions he’s asking. And answer these questions in your sales copy” – Henneke Duistermaat, EnchantingMarketing.com

One of the great tragedies of business – especially for creatives – is that clients often don’t understand the value we provide. In their minds, they want an isolated outcome – a new logo, a quick retail fit-out, an updated website. If we can’t succinctly communicate our value – the whole value we provide – then we are missing out on major opportunities and even selling ourselves short. Here are some questions you should ask yourself:

Are you committing the “do it all” strategic sin? Also lamented by The Economist, this “something for everyone” approach won’t get you anywhere. What channels are you using to communicate your business services? Are these the most relevant ones and best suited for your target market? If you have a website, is it easy to find your services? Is your site SEO and keyword optimised? Were the last testimonials from more than a year ago? Are you updating your portfolio of work on on the regular?

Remember too, language evolves with the times – are you even using the right “lingo” to resonate with your target audience? And most importantly of all,are you speaking in terms of BENEFITS as opposed to FEATURES or services?

  • Re-phrase your proposition so you’re speaking from the client’s perspective. Think “what’s in it for me?” every time you assess the copy on your website or other comms. Use a simple left to right diagram as above to help you re-write your existing content. You’ll find that benefit driven copy is more effective – client has a problem, they want to know how you will help them solve it. What will they get out of it? When you write this copy, it should be simple, devoid of industry jargon or buzzwords, and in language your clients would use. Enchanting marketing offers some great tips on writing benefit driven copy.
  • Use a visual approach; You’ve probably heard the saying “an image is worth a thousand words” – well, as a writer I say the real magic happens when images and words complement each other, perfectly and succinctly, to deliver real value. Global retail and brand consultancy Fitch Design illustrate their four step process visually on their website (see above), clearly illustrating how their services fall under each step of the process.

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