Effective Word Of Mouth Tactics – Part VI

I was first introduced to the world of multi-level marketing (“MLM”) or “network marketing” about 25 years ago when I was invited to a friend’s house for what turned out to be an Amway opportunity meeting. As the presenter drew circles on a whiteboard and talked about the explosive growth of the company and its incredibly bright future, I remember thinking “Wow! This sounds great! I can’t wait to let everyone know about this amazing opportunity!”

Oops.

I quickly discovered that unlike me, just about everyone I knew had already heard of the opportunity (and formed a negative opinion of it) – even though at that time, there had never been a single penny spent by the company on advertising.

(*One of the classic explanations of a MLM pitch is that “we cut out the middleman in the distribution chain – retail stores – and we don’t need to spend any money on advertising, so we pass on all of that money to our distributors.” Once MLM companies become huge, they do advertise a little bit – but Amway will never come within a zillion miles of out-spending rival Procter & Gamble on advertising.)

I stubbornly persisted with my attempts to build a successful Amway business, following “The Plan” by investing thousands of dollars into books, tapes and events promoted by my “upline” advisors, in addition to filling my apartment and trunk with boxes and boxes of products (distribution was done in-person back then – unlike today, where most MLM companies ship products directly to the members of each distributor’s “downline”).

Although I didn’t profit financially from my Amway business experience, I did learn plenty of real-life lessons about business, sales, marketing and leadership from all of the great materials I read and listened to and the sharp businesspeople I met and worked with.

And I came away with a lot of great stories to tell.

I’ll save those for another time, because I want to get back to the topic of this series…

Unless you’ve been hiding out on a remote island for the past few decades, there’s no doubt you’ve heard of more than a few multi-level marketing companies – all through Word Of Mouth. In fact, “word-of-mouth-marketing” is commonly accepted as a term interchangeable with multi-level marketing or network marketing.

It’s estimated that MLM is a $30 Billion industry in the U.S. alone – and $90 Billion worldwide – almost entirely thanks to the power of Word Of Mouth.

Are you convinced yet that you should invest a significant amount of time and energy into leveraging the power of Word Of Mouth for your business?

You can start by studying, formulating a plan and then taking action on as many of the “40 Ways To Harness The Power Of Word Of Mouth” that I shared in last week’s post.

Next, I’ll help you shorten your customers’ decision-making process with positive Word Of Mouth.

Here are the five stages in the decision-making process…

1. Mentally giving the product or service a chance, transitioning from a “no” to a “maybe.”
2. Check out options – investigating the different products or services available.
3. Observing the product or service to figure out if there is a fit with one’sneeds.
4. Becoming a customer by making an initial purchase and experiencing the product or service in action.
5. If satisfied, starting to spread positive Word Of Mouth about the product or service.

Let’s take a closer look at each one of these…

1. From “No” to “Maybe”

This stage is crucial, because if your potential customers don’t even take a second look at your products or services, then of course you have no chance of sealing a deal. This is why you need to offer credible information and well-thought-out pricing, guarantees and incentives. Properly positioning yourself as an expert, authority or celebrity and using compelling testimonials and case studies will greatly improve your effectiveness in this stage.

2. Investigation

At this stage, your prospects are taking a closer look at your various products or services to see if there is anything they feel could actually benefit them. This is where you need to make sure that you are providing persuasive information and proof for your prospects to consume while they compare and consider their options.

3. Trial Period

Customers often feel more at ease and ready to purchase when there is some sort of a trial in place. People like to test their options vicariously through someone else, so they feel as little risk as possible. You can provide this “trial” in several ways, including illustrative videos, product demonstrations or an online or in-person tour. If done properly, at this stage your prospect may respond by telling someone else, “I tried it and liked it. You should check it out.”

4. Initial Purchase

At this stage, they have taken the risk of purchasing one of your products or services and are now evaluating how easy, convenient, cost-effective and satisfying your product or service is for them. At this stage, a typical positive reaction would be, “It was really easy to use. It’s really great – you should get it!”

5. Becoming A Raving Fan

In this final stage of decision-making, the customer is immensely pleased with your product or service. He or she continues to use it and often makes repeat purchases. They are likely to tell everyone they know things like, “I love it, I use it all the time and I’ll be a customer for life.”

In next week’s post, I’ll go into detail about the particular characteristics your prospects and customers have during each stage in the decision-making process, and help you figure out which tactics are best to use for maximum results at each stage.

*HINT: My suggested tactics will NOT include over-promoting a network marketing opportunity or inflating potential income claims, as many MLM’ers unfortunately do. If I suggest that you do that, you have permission to wash my mouth out with soap.