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A recent issue of Global Internet Marketing News
(http://linz1.net/GIM.html)
reported an interested piece on how word-of-mouth advertising is
statistically getting more nods from the online business community let
alone the marketplace. Entitled "Word-of-Mouth Drives E-commerce," the
article pulled some interesting facts from a recent three-part study.
Conducted among U.S. consumers by ORCI
(Opinion Research Corporation International) and originally
commissioned by "priceline.com" [May, 1999], the study appears to
corroborate the fact that third party referrals are fast becoming an
essential part of doing business online.
For instance, one of my previous articles entitled "Negative Bytes Can
Come Back and Bite You" (see
http://successdoctor.com/articles/article28.htm) explained
that a person who is satisfied with a product will tell 3 others about
it. But if that person is dissatisfied, 10 others will get an earful.
However, the article did not neglect to emphasize that, "Online, those
numbers are easily multiplied." And not surprisingly, ORCI's study has
proven that reality.
It found that Internet consumers are more likely to tell their friends
and family about their online shopping experience than about others,
such as favorite restaurants and movies. The study also found that the
typical Internet consumer tells 12 additional people about their
online shopping experience. (This compares to the average U.S.
consumer that tells 8.6 additional people about a favorite film and
another 6.1 people about a favorite restaurant.)
According to GIM's article, word-of-mouth referrals are likely to
continue to be a very important source of business for e-commerce
merchants, particularly given consumers' anxiety about the security of
online transactions. With credit card fraud on the increase (although
at a crawl when compared to the explosive number of online
transactions), the importance of referrals from people we know and
trust is increasing significantly on the web.
While online consumer fears overall are on the decline, referral or
network marketing is still the surest way to develop and communicate
instant credibility -- and credibility is what it's all about. Thus,
good old word-of-mouth advertising is becoming not only an essential
component of doing business on the web but also exceedingly vital to
successful, long-term marketing.
The moral? Get others to refer you and refer
you often. Get out and about -- both online and off. Focus on a
specialization, a niche. Get yourself known as an expert in your
field. For example, write articles for newsletters, publications, and
ezines in your industry -- especially those read by your target
market. And actively participate in discussion groups and lists.
In other words, proliferate the knowledge of your existence through
third parties by getting others to talk about you and to link to you.
Probably the most important step in that direction is to first focus
on a niche and targeting your market. Have your site centered on a
specific theme or concept. By doing so, you will anchor your business
or product in the mind of the marketplace. The next step would
obviously be to render superior customer service.
Ultimately, make it simple for people to refer you to others, such as
by using referral services -- for example, visit
http://SuccessDoctor.com/referral.htm. And, most important,
set up your own affiliate program. What better way is there to sell
your wares than through those who know your clients better than you
do? In short, multiply your marketing.
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