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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