One this episode of the Rethink Marketing Podcast, Colin Jeffries and Paul Frodge discuss the importance of optimizing word of mouth as a channel without becoming over-reliant on it. Having customers help you grow your business has tremendous benefits--and some dangerous drawbacks! They emphasize the need to diversify marketing efforts and de-risk the business from too much word of mouth. The conversation also covers the significance of having a well-defined referral program and incentivizing customers to make referrals.
Takeaways:
Word of mouth marketing can be a powerful way to grow a business, but it is important to avoid over-reliance on it. Diversifying marketing efforts and exploring other channels can help de-risk the business from relying solely on word of mouth. Having a well-defined referral program and incentivizing customers to make referrals can help drive word of mouth marketing. Asking for referrals and staying top of mind with customers is crucial for generating consistent referrals.
Chapters:
00:00 - Introduction and Welcome
00:16 - The Benefits and Drawbacks of Word of Mouth Marketing
01:11 - Rethinking the Importance of Word of Mouth
02:09 - Optimizing Word of Mouth without Over-Reliance
03:44 - Referrals as a Source of Opportunities
04:59 - The Importance of Having a Word of Mouth Strategy
05:53 - Diversifying Channels and Offloading Risk
06:43 - Asking for Referrals and Being Top of Mind
08:39 - Handling Referrals and White Glove Service
11:29 - The Risk of Over-Reliance on Referrals
12:19 - Building a Referral Program and Backstopping Against Loss
14:28 - De-Risking Reliance on Word of Mouth
16:22 - Diversifying and Increasing the Frequency of Referrals
17:01 - Conclusion
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