Proactive word-of-mouth - is it possible?

Yes, it's true - just as some people are natural athletes, some businesses seem to generate lots of positive attention because of their product or market. But in reality, these people and businesses are very few and far between. For the most part, like great athletes, great businesses WORK REALLY HARD to get positive word-of-mouth. (Think the hype surrounding every new Apple product release is accidental? Nope! That's a well-oiled PR machine working it's bum off.)

Great businesses don't sit around waiting for people to start talking about them. They ask their customers for referrals, request online reviews, keep top-of-mind with customers through interesting and relevant ticklers, and above all, they do everything in their power to provide every customer with the best experience possible.

Sounds too much like hard work? Of course it's easier to provide mediocre service, never bother keeping in touch with customers, and sit around blaming the state of the economy for the lack in enquiries - much easier! But that's not the road to a successful business that's buzzing. It does take a bit of effort and thought - but it's also worth it's weight in gold. Why? Because...

1. People don't believe your advertising anymore
   That's right, we've become a cynical bunch and we all know how marketing works. We won't take anything at face value anymore. Advertising is still great for building awareness but it's really tricky to build trust, preference or a real connection with advertising alone.
   
   
2. Word-of-mouth is now permanent, searchable and pervasive
   While we might not chat to our neighbours as much as in times gone by, the internet actually makes word-of-mouth much more powerful because the comments, reviews and mentions that your business gets today, can be found by people searching next week, but also next year. They can also be seen by people nearby, and people anywhere in the world looking for a business in your location (which is great for web businesses or those that service people that travel). Most importantly, thanks to the magic of search, your feedback is seen mostly by people that are actually looking for a service just like yours. People that value good quality and good service, and in some cases, will pay extra for it.
   
   
3. You might need to call on your positive reputation one day
   No matter how good a business you run, one day you'll get some negative feedback online. Warranted or not, someone will put a ridiculously bad comment up on Facebook, Twitter, their blog, or some other online forum. If that's the only feedback about your business on the web, it's going to look really bad - whenever someone searches for your business, that's all they'll find. But if you've already built up a great bank of positive feedback, one negative comment is almost irrelevant (of course, you should still address it, but on it's own it's unlikely to do any real damage).
   

Some business owners are hesitant to ask customers for reviews or mentions online, but ironically, most people actually think more highly of businesses that ask for feedback and feel flattered to be singled out. If they're happy with the service they've experienced and feel that you've gone out of your way for them, most are more than happy to return the favour. In fact, they'll probably be a happier customer, just because of the fact that you've asked them for honest feedback (seems weird but you'll see for yourself).

Word-of-mouth is the most powerful form of marketing there is and if you're passionate about creating buzz for your business, you need to get this working. So don't be shy and don't be lazy, hand your customers a MEGAPHONE and start building up your online reputation!

"My customers have become my sales force!"

Elaine Daher from Bluebell Conveyancing explains how word-of-mouth can work for professional services...

“When someone first told me there were customers rating my services online – I panicked and raced to the nearest computer! What if I’d done something wrong, what would they be saying? I need not have worried though, as the ratings were very positive and now play a big part in driving my business forward. In fact, we’re consistently getting several new clients a week because of our ratings on WOMOW.”

“It’s made me realise that when you’re genuine about providing a good service, customers are more than happy to let others know about their experience – it seems to be their way of thanking you. The flyers are an easy way to encourage them to do this on WOMOW and the system works really well. But the best part is that these reviews are helping my business get found online and are bringing in lots of new clients. My customers have effectively become my salesforce!”

“I’ve been really surprised to find how many people search online for recommendations when they need a new business. We’ve always had a lot of new clients from traditional word-of-mouth, but I never imagined that putting that feedback online would generate so many more enquiries. When people buy or sell property, they often don’t have a preferred conveyancer, so it seems that a lot of them go hunting on the web. With so many ratings, I’m lucky because often their searches will lead to my WOMOW listing and I’ll get a call.”

“The clients that come to us this way are impressed from the outset and feel confident in choosing us. I think we’ve represented almost every WOMOW enquiry we’ve had.”

Bluebell Conveyancing's listing on WOMOW can be seen here - www.womow.com.au/biz/Bluebell-Conveyancing-Williamstown/

Want to be trusted? Use consumer reviews...

People buy from businesses they trust. Whether it's an expensive B2B purchase or a simple dinner out, there are risks involved in every transaction and consumers choose to deal with businesses they believe minimise their risk. If they feel that a particular restaurant has less chance of disappointing them and embarrassing them in front of their friends, that's the one they'll choose. And if it makes sense for this type of transaction, think about situations where there's more money involved, more permanent repercussions of the purchase, or more personal services being selected. Trust me, trust is the holy grail...

So, if you're a business owner or marketer, how do you build trust? Well, there are 3 pieces of research that show how online consumer reviews can go a long way towards building a reputation people trust...

1) Almost two-thirds of people read consumer-written reviews on the internet (Deloitte & Touche)

Yes we all know that the world has gone online but did you know that all kinds of people are looking online for all kinds of businesses? We don't just research our electronic purchases online, these days people use the web to search for and scrutinise all types of businesses. One case in point is ADM Motors - a mechanic that joined WOMOW a couple of months ago. It's owner Adam says that he "never thought so many people would be looking online for a mechanic - boy was I wrong!" Since joining he knows of at least 10-12 new customers that have come to him after reading reviews about his business online - some driving all across town just to use a mechanic they feel they can trust (without ever having met Adam or used his services previously).

2) 78% of people trust other consumers' recommendations above all other types of advertising and marketing (Nielsen)

So, given that people are looking at online reviews, how much impact do they have? Well according to a recent Nielsen Golbal Online Survey of over 25,000 consumers from 50 different countries, people trust online reviews more than any other form of marketing or advertising. That's right, people don't need to know who has written the reviews, they believe what they read. The only source of advice found to be more trusted was a personal recommendation from someone they know.

Some of the businesses on WOMOW have experienced this heightened trust first-hand with Greg Mulroy from Body and Scents Perfumery saying "when people read our reviews online it gives them confidence that they'll get exactly what they expect and not a fake copy". Similarly, Nicole Seagren from Vision Finance encourages prospective clients to check their reputation on WOMOW "it gives them a positive mindset so they come to us expecting a good result and we get off to a good start".

3) People that read reviews are 30% more likely to purchase (Coremetrics)

So how does trust relate to sales? Well, studies by Coremetrics show that when businesses make online reviews easily acccessible, sales jump by an average of 30 per cent! Again, plenty of businesses on WOMOW are finding a fairly direct relationship between the number of positive reviews they have and the new clients they get from WOMOW. Misty's Diner has lots of positive ratings on WOMOW as they've been encouraging customers to enter reviews for almost 2 years now. This effort is paying off as Misty now attributes around one third of her revenue to customers that read her reviews online.

But are consumer reviews a short-term phenomenon that will go away sometime soon? Well, Trendwatching.com has labelled this the "Transparency Triumph" and predicts that even though review sites have been around for some time now, "we ain't seen nothing yet". They note that the trend is empowering consumers as never seen before - something that people aren't likely to give up without good reason. They also see the trend helping savvy businesses build inspiring brands and say that those that embrace consumer reviews are set to benefit as (in their words)...
"Reviewing is the new advertising".

Click here for more information on using WOMOW to build a bank of online reviews.

Word-of-Mouth Goes Online

Ever wondered how some people seem to find all the best businesses? Word-of-mouth has always been a sure-fire way to find great businesses and avoid the worst. In fact, word-of-mouth is often said to be the oldest and most effective form of marketing. But recently a new website has begun revolutionising the way word-of-mouth works in Australia. It’s called WOMOW.com.au and it stands for Word Of Mouth On the Web.

WOMOW.com.au is somewhat like a business directory (excepting that it’s written by users, all businesses are rated, and businesses don’t pay to be included), and similar to a web forum (except that it’s more structured so that information can easily be retrieved by others). The result is a unique tool that’s already changing the way that thousands of people find and choose businesses – and it may end up having a dramatic impact on the business landscape.

Just imagine, you’re looking for a mechanic that won’t rip you off, or a hairdresser you can trust to give you a great new look, or you need to organise a funky dinner venue for a bunch of friends… what you want is a recommendation. Jump onto www.womow.com.au and search. There you’ll find businesses that have been rated by real customers – many with lengthy descriptions that give you a really good idea about the business.

Say you’re looking for a mechanic…

About Town Mobile Mechanics (Melbourne) by Jablue
“It might seem as I'm generous in my praise in that I've rated Rob & About Town in the highest category for all criteria - but that was honestly my experience. My car had been broken down for some time & after chatting to Rob he agreed to come to my home on that day to diagnose the problem. He arrived on time, found the problem (starter motor) very quickly, and had a replacement fitted for an agreed price. I was able to pay by bank transfer, and he even checked a problem my sister was having with her ignition while I was on the computer. Couldn't be happier !!!!”

Or a cleaner…

Theema Cleaning (Greensborough) by MelissaL
“Have used Theema Cleaning twice for a spring clean at my house including windows. When it comes to window cleaning they really know their stuff in terms of different types of glass and what products to use. They use environmentally friendly cleaning products and have a great team that come in and get the job done in record time. I also used Theema for cleaning the blinds at my office and they did a fantastic job at short notice for this as well. Would highly recommend.”

Or maybe a physiotherapist…

Rating for Coburg Physiotherapy by krees
“I have a chronic back injury, and I've been to many physiotherapists before, but none have fixed me like these guys. They are never late with appointments, are open later than other places, so you don't need to leave work early, and is a great experience. Compared to other physiotherapy centres, they are also quite reasonable priced, and also cover work cover and pensioners.”

Traditional directories let you find businesses, but how do you know if they’re any good? The businesses that pay the most are always the most prominent, but you know nothing about their service (other than they’re paying a lot for advertising). WOMOW co-founder, Fiona Adler, believes that “good businesses deserve to be rewarded for their efforts and WOMOW helps them by amplify their word-of-mouth reputation”. Product reviews are everywhere on the Internet so it’s about time we had an equivalent resource for finding out about local services. And what if businesses provide poor service? Adler says, “people need to know about that too!” In fact, WOMOW.com.au does more than help people find great businesses, it gives consumers recourse in the event that they’re treated poorly - in effect, giving more power to consumers.

But the real strength in WOMOW is that it provides an incentive for businesses to treat customers well. “Give people a great experience and they’ll thank you with a positive rating on WOMOW – and before you know it, more people will start trying your business, giving you more opportunities to show what great service you can provide.”

And it already seems to be working for some businesses...

Misty Singer from Misty’s Diner in Prahran says that "In one night alone, new customers from WOMOW accounted for almost a third of our revenue! It gives me goosebumps when I read some of the great things our customers are saying about us." (You can see the actual ratings here - www.womow.com.au/biz/Mistys-1950s-Diner-Prahran)

And hairdresser Lee Davies from Salon Lavan claims that “Business is booming – in the last 2 months, we’re been getting several new clients a week – just because customers are writing nice things about us on WOMOW.” (You can see Salon Lavan’s ratings here – www.womow.com.au/biz/Salon-Lavan-Elsternwick.)

WOMOW.com.au has been up and running for less than a year but already has more ratings for all kinds of businesses than any other site in Australia. In fact, users have already entered over 16,000 ratings and traffic is growing at around 25-30% each month! There’s a real sense of community coming through too. People are realising that by spending a couple of minutes submitting a rating and sharing their experiences, they can contribute to their community by helping their neighbours get great service and supporting the customer-focussed businesses in their area.

With more and more people turning to WOMOW to rate their favourite and least favourite businesses, we could be seeing the beginnings of a people’s movement for better customer service. And that’s got to be good for everyone – except the dodgy operators that is!

Check it out at www.womow.com.au.

Key Facts about WOMOW

• WOMOW.com.au went live in July 2007 after winning three out of four categories in the Melbourne Universities Entrepreneurship Challenge in April 2007.
• As of June 2008, WOMOW’s users have entered over 16,000 customer ratings with a new rating currently being submitted every 6 minutes. WOMOW already has more ratings for all types of businesses than any other website in Australia.
• Traffic is strong and growing at 25-30% per month.
• WOMOW began in Melbourne but now operates throughout Australia with localised ratings for each major centre.
• WOMOW covers all types of businesses – eg: tradespeople, hairdressers, gyms, doctors, physiotherapists, child-care centres, restaurants, activities, cleaners, vets, dentists, mechanics, accountants, computer repairs, wedding services, beauticians, and lots more (basically anything you’d like a recommendation for)