Demystifying

Word ofMouthErnest Dichter

With Marketing Legend

PART THREE

Why Customers Act on Referrals

Word OfMouth

Referralsare a

Recurring3 Step Process

Why Customers Act on Referrals

Talking about

These st eps are :

Listening to

Acting on the Referral

AND

In this 3 part series, find out why each step

happens

and

how to use this knowledge to acquire more

customers through word of mouth

referrals...

With the help of marketing legend,

Ernest Dichter

Why customers

act onReferrals

Authentic Passion

“The real meaning of a product and of its effect to the user is revealed not only

through the choice of the speaker’s words, but also through the discharge of

emotions in inflection, face, and body expressions,

and gestures.”

Ernest Dichter writes

Having an awesome product and a

devoted fan base will encourage

passionate referrals.

your business is still on it sway there?

But what if...

You could back a charitable

cause customers can get REALLY passionate about.

(Choose carefully!)

For every pair of shoes sold, TOMS’ One for One

campaign donates a pair of shoes to a

child in need.

Since 2006, TOMS has sold and

donated 10 million pairs of shoes.

SOURCE: http://style.time.com/2013/06/26/toms-hits-10-

million-mark-on-donated-shoes/

And that’s a lot of happy children!

37% of Millennials report

being drawn to products with cause campaigns

where their purchase is a form of support.

84% Share because it’s a way to support causes or issues they care about

SOURCE: http://barkley.s3.amazonaws.com/barkleyus/Amer

icanMillennials.pdf

SOURCE: http://coschedule.com/blog/why-people-share/

Genuine Compassion

“That the speaker is genuinely concerned with the listener’s

well-being or has his advantage at heart becomes

eminently believable in cases in which the recommendation is

geared to, and takes into account, the individual needs

or special circumstances of the listener.”

Ernest Dichter writes

This means a Referral should address specific

needs, preferences or problems that a customer faces.

In ecommerce this comes in the form of product recommendations based on the customer’s preferences.

100% of the top 10

retailers in the Internet Retailer 500 use product

recommendations.

SOURCE: http://content.monetate.com/h/i/12311883-maximize-online

-sales-with-product-recommendations#axzz2IdJfsKau

70% of Amazon’s homepage

are product recommendations!

SOURCE: http://content.monetate.com/h/i/12311883-maximize-online

-sales-with-product-recommendations#axzz2IdJfsKau

Actual Proof

“Tangible evidence” that a product works, as seen in

real life, “…serves to strengthen the impact … of a

recommendation in cases in which personal intention or product relationship are not

sufficiently convincing in themselves.”

Ernest Dichter writes

Proof in marketing used to take the

form of infomercials on TV

In ecommerce, customer reviews are your proof.

The average customer consult s Eleven

consumer reviews before a purchase.

61% of US consumers

have made purchases based on a blog review

SOURCE: http://www.webershandwick.com/news/article/consumer-reviewers-wield-more-power-than-professional-critics-in-driving-pu

SOURCE: http://www.social4retail.com/the-blog-econom

y-blogging-stats-infographic-2014.html

Semblance of Secrecy

When the speaker displays a “reluctance to divulge the source or brand name of a product” it can serve

as sign to the listener that the product is so uniquely desirable the speaker doesn’t the want masses to know about this secret brand. “This

refers to the well-known psychological phenomenon that the harder it is to get a desired object,

the more desirable it becomes.”

Ernest Dichter writes

By withholding the source or details

about your product, you’ll create intrigue

in customers.

The more unattainable an object is, the higher it s

perceived value is.

Gmail was highly exclusive during it’s first 3 years

of service, requiring an

invite to sign up.

Social media was abuzz with request s

for invites.

Gmail currently has

425m users and it s mobile

app experiences

29% year on year growth

Word of mouth has been shown to

improve marketing effectiveness by up to 54%!

Visit

for more tips andstrategies on using word

of mouth to acquire more customers!

SOURCE:

http://blog.getambassador.com/word-of-mou

th-marketing-statistics/

Blog.ReferralCandy.Com