Growth Concepts LLC

Posts Tagged ‘referral systems’

Is social media another form of word-of-mouth?   Business value rule number two from “14 Unalterable Business Value Laws” states, ” Word-of-mouth sales must be more than 20% of gross revenue or reduction of business value starts to occur.”  Word-of-mouth could take on several purposes in a business like B2B, customer to new trial user or new potential customer.  Social media is word of mouth at its finest, but without a well thought out strategy, success rates will suffer. What type of referral system/social media is working for your business?

When a business buyer is looking at business for sale they always look where sales are coming from.  If a business owner is spending to much on her/his marketing budget for T.V., ppc, cable or other push media(for new leads) the business buyer knows something is not working. And word-of-mouth is not spreading the name, product knowledge and affection of the business.   Something is not working.

Word-of-mouth is either working for or against business value.  We all know that one disgruntled customer tells 7-10 people about their poor experience with a business.  While one happy customer tells only 4-6 people about their positive experience.  How could your business optimize word-of-mouth while maximizing business value?