Blog Layout
Word of Mouth Tactics – Part 2
July 5, 2020
The power of word of mouth and how to mold it to your advantage.
In the last post we started our series on word of mouth and talked about how to make your customers purchasing experience a short, easy one. We are going to continue with that theme a bit today.
We’re going to talk about the power of word of mouth and how to mold it to your advantage.
The reality is everyone needs an advisor to guide them to make a decision. We rely on the expertise of others to make the right decisions as they are explained to us.
When you take the time to understand exactly what and how word of mouth works, you’ll see all the great advantages it has to offer you. Remember this path when working to understand word of mouth:
- Accelerate the decision making process for increased profits.
- You can accelerate product making decisions by making the process easier.
- Instead of low-ball advertising and the used car salesman approach, try delivering on your word of mouth promises.
- Traditional advertising draws about one response for every thousand ads and most of those are to ask for more information before the customer even considers purchasing.
When you get information from a friend, you are more likely to take their word for it and act. On average customers purchase two out of every five recommendations their friends make.
That’s a HUGE difference.
So, what exactly is word of mouth?
Well, we know how powerful it can be, but to define it: Word of mouth is a communication that happens between a customer and a potential customer. There is usually a relationship of some kind between these two people with an established level of trust.
Now, compare this to advertising where you are providing a message to a potential customer where they have not established relationship with you or level of trust.
Who are they more likely to take advice from? The answer is clear!
We talked above about the benefits of word of mouth now let’s take a look at some reasons why it works. Some of these are:
- The information is custom tailored to the potential customer because of the friendly relationship of the referrer.
- It’s more personal, relevant and believable.
- It’s customer driven.
- It’s self generating and can take on a life of its own, especially with the information age of the Internet.
- It becomes part of the product’s description.
- The source of word of mouth can be important and more effective when coming from an expert.
- Word of mouth saves you time and money.
- To fully utilize word of mouth you need to understand:
Where is your word of mouth coming from?
What products are being affected by word of mouth?
How is your word of mouth traveling?
Once you know these things you can work out a plan on how to trigger more word of mouth.
This wraps up this lesson on word of mouth. If you need help understanding word of mouth and how it can impact your business, try our FREE test drive to access our wealth of resources and tools.
Next time we’re going to dive into the nine levels of word of mouth. These levels help you understand which word of mouth is positive and which is not.
Carl Spruyt - iKULUTU.com
iKULUTU.com
Share on...
How To Give Your Business
THE EDGE
With Founder of iKULUTU.com
Carl Spruyt
FREE SPECIAL EVENT
VIA ZOOM
Register your interest by clicking the REGISTER NOW button below.
We'll be in touch with you to book a suitable time.
The body content of your post goes here. To edit this text, click on it and delete this default text and start typing your own or paste your own from a different source.
In today's business landscape, an often-overlooked factor that can have a profound impact on the value and salability of a business is the demographic shift towards an aging population. As the number of retirees increases and the pool of potential buyers decreases, business owners may find it more challenging to sell their businesses at a desirable price. Understanding this shift and taking proactive steps to prepare your business for sale in light of these changes is critical for securing your financial future. Understanding the Demographic Shift The demographic shift refers to the changing composition of a population over time. In this context, it signifies an increase in the proportion of older individuals within the population. According to data from the United Nations, by 2050, one in six people in the world will be over the age of 65, up from one in 11 in 2019 ( https://www.un.org/en/development/desa/population/publications/pdf/ageing/WorldPopulationAgeing2019-Highlights.pdf ). This increase in the aging population has broad implications, including a shrinking workforce and changing consumer preferences. For business owners looking to sell their businesses, this demographic shift can result in a more competitive market, with fewer potential buyers and a possible decrease in business valuations. Understanding these trends is essential for positioning your business favorably in the market. Challenges for Business Owners As the population ages, business owners face several challenges when preparing their businesses for sale: Reduced Buyer Pool: With more people retiring, there may be fewer entrepreneurs looking to purchase existing businesses. Changing Consumer Preferences: An older population may have different needs and preferences, affecting the demand for certain products and services. Increased Competition for Buyers: As many business owners from the baby boomer generation reach retirement age, there is likely to be an influx of businesses for sale, making the market more competitive. Workforce Considerations: As the population ages, companies may face challenges in recruiting and retaining a younger workforce, which can be an important consideration for potential buyers. Economic Impact: The aging population can affect the broader economy, potentially leading to slower economic growth, which can affect business valuations and buyer confidence. Adapting Your Business Model In light of these challenges, adapting your business model becomes a necessity. Here are some steps you can take: Target New Markets: Consider diversifying your target market by including products or services that cater to an older population. Leverage Technology: Utilize technology to streamline operations, improve efficiency, and appeal to a broader range of potential buyers. Build a Strong Team: Focus on recruiting and developing a younger workforce, which can be an attractive feature for potential buyers. Offer Unique Value: Differentiate your business by offering unique value propositions that set it apart from competitors, particularly in a saturated market. Develop a Scalable Model: Creating a business model that is easily scalable can be attractive to potential buyers looking for growth opportunities. By understanding the demographic shift and the challenges it presents, and by adapting your business model accordingly, you can position your business for a successful sale, even in an increasingly competitive market. Exit Strategy Options In a tough business climate, having an exit strategy is critical. Here are some options that can be considered for a planned and smooth exit: Management Buyout: Selling your business to your management team ensures that your business is left in experienced hands. Sell the Business Externally: Finding an external buyer could potentially provide you with a higher return on your investment. Pass onto Family: If you have family members capable and willing to take over, this can be a good way to keep the business within the family. Shut the Business Down: In certain scenarios, winding down might be the most viable option, especially if the business is not doing well. Preparing Your Business for Sale To ensure a smooth sale in the future, it is essential to have your business well-prepared. Here are steps to take: Implement Robust Systems: Streamlining operations through effective systems is critical. This adds value to your business by ensuring efficiency and consistency. Ensure Predictable Revenue Generation: Develop strategies that ensure a steady flow of new business. A predictable revenue stream makes your business more appealing to potential buyers. Create a Succession Plan: Develop leaders within your organization who can continue to run the business efficiently even in your absence. This adds a layer of security for a potential buyer. Documentation and Compliance: Keep your documentation, licenses, and compliances up to date. Having all the paperwork in place will build confidence among potential buyers. Build a Brand: Work on creating a strong brand identity. This makes your business more attractive and can fetch a higher price. Optimize Financial Performance: Ensure that your financial records are impeccable and that the business is financially healthy. Exiting a business is a complex process that requires planning and strategic thinking, especially in a challenging market. By considering various exit strategies, and preparing your business for an eventual sale, you not only protect your investment but also ensure that the business continues to thrive. This preparation is critical for making the sale process smooth and beneficial for both you and the buyer. Are you interested in learning more about preparing your business for a successful exit? We invite you to attend our seminar, “Beyond Business: Planning Your Exit,” on July 12th at 12pm at the MACTODD offices in Queenstown. This seminar will provide you with insights, strategies, and practical steps to ensure that you are well-prepared for a successful business exit. Don’t leave your business future to chance - be informed and take the right steps towards securing your legacy. Register now to secure your spot - https://form.jotform.com/231728212827860
There are certain traits that the most successful business owners all seem to share...
Discover how a business coach can provide valuable insights and ideas to help you take your business to the next level while balancing your personal life. Learn how a coach can help you set realistic goals, stay accountable, and achieve greater work-life balance.
How to Utilize the Latest Technology and Spot Opportunities Before Anyone Else
How Knowing Your Customers Can Help You Achieve Success in Business
The power of a consistent and reliable pricing model
And Yes , it’s easy to get distracted by it all. And Yes , it’s easy to fall into the trap of feeling that you are not in control anymore. And that SUCKS! It’s an awful feeling. But none of the world’s craziness at the moment is your fault. And you definitely can’t control any of it. So why stress over something beyond your control? Makes no sense, right? But there is something that you can control…. What you do Today, Tomorrow and the Day After! (aka “Your Daily Habits”) That’s It! Nothing else matters… AND, you are the only one in control. The 10 Habits of Successful Business Owners That Only YOU Control TTT which stands for ‘ Time To Think ’… create a question and take 45 minutes in a quiet room with zero distractions to write down your thoughts and solutions to it. This will perform like MAGIC for you. Exercise … go to the gym, or just go for a walk. It will fire-up your daily productivity and your income. Identifying your 80 / 20 (50% / 1%). Everyone says they know the 80 / 20 rule but very few apply it. Things that are directly related to your ultimate vision . See #1 if you are not clear on your ultimate vision. Acknowledging “ small wins ” (small wins are proven to lead to your BIG wins) High productivity tasks (think 1% / 50%) that ‘move the needle’. Exploring innovative , new ways of doing something that will increase your effectiveness and productivity. Doing things that heighten your creative juices . Getting others to complete your low-end tasks (cleaning, cooking, driving, laundry etc…). Identifying high productivity individuals and working with them. If you need help to get back in control of your business, reach out, I’m here to help. Changing lifetime work habits is hard to do by yourself. Most people need a coach to lock it in. Carl Spruyt – iKULUTU.com
Let’s be honest, we’re all guilty of wasting time on stuff that doesn’t really matter. As a Business Owner you can not afford to be distracted and lose focus on your big vision. It’s the old saying….”Time = Money”. So, if you are doing things that are holding you back then you have a real problem. Take the test. How many of the 7 biggest time wasters below are you doing EVERYDAY….? The 7 Biggest Time Wasters Most Business Owners Suffer From…. Doing things, you HATE doing Doing things you are NOT SKILLED at Doing things OTHER PEOPLE ask you to do Continuing to do something that has already TAKEN TWICE AS LONG as planned Stopping something and then planning to COME BACK to it Doing things where you need to rely on OTHERS THAT ARE UNRELIABLE Doing something THAT’S ALWAYS BEEN DONE THIS WAY If you need help getting off the time-wasting treadmill, reach out, I’m here to help. Changing lifetime work habits is hard to do by yourself. Most people need a coach to lock it in. Carl Spruyt – iKULUTU.com
This type of marketing is used to answer questions, present your branding, products and the reason you do what you do. Customers love this, as they are offered the opportunity to respond, whether that be in the way of signing up for a newsletter, posting a comment on your site or blog, or purchasing a product from you. So, what does direct response marketing look like? Well, it comes in many forms, including: Direct mail Print ads Radio and TV ads Coupons or other incentives Some of the advantages of direct marketing are: A great way to use free time during lulls in business Productive way to communicate and empower you to create more relationships Great way to up- and cross-sell to current customers Low cost way to rustle up new business Used as leverage to turn small sales into large sales Supplement your current marketing program Cost-effective way to reach target markets Offers measurable results Reach outside your local area for new business Increase the effectiveness of your sales force These are all great things that can come from just taking a few simple steps to putting together a direct response marketing plan and executing it. “I honestly don’t think you’ll ever find a safer, lower-risk, higher-profit method of increasing your business or profession than direct-response marketing.” Jay Abraham Direct response marketing is one of the best ways to launch your business on a large scale and reach out to everyone in your target market whether they are in your local area or not. Our FREE test drive can help you put together a great direct response marketing plan and get you on your way to heightened success. Carl Spruyt – iKULUTU.com
Let’s talk!
Have a question or comment? Let us know.
You can also find us here:
