The Power of Word-of-Mouth
In 2011, I was fortunate to check a major item off my bucket list: Visit New Zealand’s South Island. Knowing it would be an expensive adventure, I meticulously researched each hotel, restaurant and activity using TripAdvisor.com to ensure that I would get the best experiential value based on the reviews of others.
Advertising spent on brochures, web design, billboard advertising, TV or radio had no influence on me and where I chose to spend my money. Every decision I made was based on the opinions of others.
Well, I wasn’t let down. I had the time of my life!
Recently, while visiting a drop zone in the Midwest, I pulled into the parking lot of a recommended hotel and read reviews about it on Yelp.com. Had the reviews been negative, I would have carried on with my hotel search. My consumer behavior is consistent with Generation Y which places a premium on experience over expense and makes decisions from quick research using a smartphone.
This behavior is not limited to the service industry, as I, and others like me, have conveniently selected dentists, doctors, computer repair techs and a myriad of other services using review sites.
There has been a lot of criticism in the media about review sites like Yelp and others because of so-called review padding by owners of establishments who create positive reviews for themselves. If a business operator delivers a poor product or service, no amount of padding can outweigh the tidal wave of negativity that will crash on a business from savvy consumers.
Review sites are here to stay and effectively utilizing them is a key to a drop zone’s success today and in the future.
Word-of-mouth (WOM) has always been the most credible and effective mode of marketing, but its transmission beyond our small social circles had been limited by our interactions. Prior to the smartphone, an average consumer would tell three friends about a great experience and 10 about a bad experience.
Today, Facebook and Twitter deliver opinions, both positive and negative, to thousands of people in seconds. A company’s survival centers around great service, selling an excellent product, and using new mediums for marketing.
Once considered to be in a different category from marketing, customer service has transitioned from being an extremity to being at the heart of influencing consumers on where to spend their money. Inspire your customers through exceptional service to utilize the technology available and create rave reviews.
Gaining Competitive Advantage: Leveraging WOM
Leveraging word-of-mouth is both effective and inexpensive when attempting to raise a company’s profile in a busy marketplace. An example of this is the story of my family and how they utilized TripAdvisor to transform their business.
My parents operate an eco-kayaking tour on the island of Antigua, competing with 67 other tour companies vying for cruise ship passengers arriving each day between November and April. How does a literal mom-and-pop compete with no advertising budget and thrive? The answer: Craft a five-star experience complemented with superior service and then ask your customers to review the trip.
The result? Their business tripled after they moved up the TripAdvisor rankings from 26th to number one in the country. Their customers became the marketing team and word spread virally about the Antigua Paddles experience. Any drop zone in the skydiving industry can adopt this strategy and be successful if implemented correctly.
The advent of the smartphone is a game-changer. At no time in history have consumers had the power to effect the success or failure of an organization. The very survival of a company not only depends on a product or service but also how the customer feels and most importantly, how that feeling is shared.
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