The Purpose of Business is to Create a Customer who Creates Customers

If you ask people about the best form of marketing, most would say it is word of mouth, and they would be correct. Unfortunately, however, many companies don’t capitalize on this wonderful opportunity of having their clients do the legwork for them. Businesses spend thousands of dollars trying to reach their target market when they have a whole army of sales reps right at their fingertips. Without even knowing it, your current and past customers act as sales reps for your company, selling your products or services on your behalf by referring their friends and family to a company they trust. How can you capitalize on this you might wonder…

  1. Ask for Product/Service Specific Reviews. This is slightly different from a testimonial where customers give feedback that more general to their experience with your company. Although this type of review is still valuable, directing people to give specific feedback about a product or service will give you a much more credible review. For instance, in my company, instead of asking a customer to give a review about their experience, I would ask them to give a review specifically about the service I gave them. Asking a customer, “Would you take a moment to give me a testimonial about the website I designed for you?” will get a more specific testimonial than simply asking for feedback.
  2. Add Product/Service Specific Reviews to the Specific Website Pages. Most companies create a single testimonial page for all their reviews. This is good to have, but I suggest taking it a step further and putting the specific reviews on the relevant product/service pages. Larger companies like Walmart and Amazon already do this for their products as it helps funnel sales better because it keeps the customer on one page.
  3. Encourage your customers to spread the word by setting up a referral program. Offer them a dollar amount or discount off their next purchase for each new client they bring in. With a referral program is it a win-win situation for everyone involved; you not only get to establish a longer term client but your current clients will be motivated to spread the word about your client because they get something in return.

Not convinced? Here are a few statistics to blow your mind:

  • Word-of-mouth has been shown to improve marketing effectiveness by up to 54%. [MarketShare]
  • When specific case studies were analyzed, researchers found a 10% increase in word-of-mouth (off and online) translated into a sales lifts between 0.2 – 1.5%. [MarketShare/ Keller Fay Group]
  • 84% of consumers reported always or sometimes taking action based on personal recommendations. 70% said they did the same of online consumer opinions. [Nielsen]
  • The average value of a Facebook fan in certain consumer categories is $174. [Syncapse]
  • 43% of social media users report buying a product after sharing or favoriting it on Facebook, Twitter, or Pinterest. Over half of purchases inspired by social media sharing occur within one week of sharing or favoriting, and 80% of purchases resulting from social media shares occur within three weeks of sharing. [VisionCritical]
  • Millennials ranked word-of-mouth as the top influencer in their purchasing decisions about clothes, packaged goods, big-ticket items (like travel and electronics), and financial products. Baby Boomers also ranked word-of-mouth as being most influential in their purchasing decisions about big-ticket items and financial products. [Radius Global]

Statistics are from

How is your Word-of-Mouth Advertising? If you are interested in learning more about this form of advertising or need help setting up a referral program that works for you give us a call, 734-273-9301 or send an email to

The title is from a quote by Shiv Singh

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