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When you are in a store to buy, say a refrigerator, what’s one question (along with other trivia) that you ask the salesman before you decide on buying a particular brand? You guessed it right… It is “What’s the brand people are buying these days?”

That question underlines the key factor governing business-consumer relationship- TRUST. The answer to that question shows where consumer are placing their trust and that’s more likely where you want to place your trust as well.

Think of it. You have plenty of advertisements trying to convince the consumers that a particular brand is the best. Whether or not a consumer is convinced, s/he is surely left confused. So how do most of us decide on what to buy? Reading the literature of all brands of a particular product is surely not an option. Well… most often than not, we get convinced by what our friends, neighbours, colleagues, relatives and other of our associates say. Their recommendations matter a lot to consumers.

This is word of mouth. In technical terms, this type of marketing of a particular product, where products are get referrals informally, is known as word of mouth marketing (WOMM).

Interestingly, while big businesses can rely on large scale expensive advertising, small businesses, to gain momentum,

need to make sure people know about them. This is where word of mouth comes in handy as the most effective means of advertising and bringing in more of consumers.

Let’s look at few advantages of word of mouth marketing.

1. Low-cost affair

   It’s perhaps the most effective and the oldest way of advertising. Yet, it costs nothing. Consumers tend to recommend something on their own, without the businessman having to invest on anything but quality service. This is especially effective for small businesses.

2. Builds trust

   When you provide quality service, you are making people happy. In return, they favour you and recommend you to their kith and kin. As their recommendations matter more than anything else, they are ready to trust you over others.

3. Helps create a market for your business

   When consumers share their experience they had with your services, they are advertising your services to other people and in turn building up a good network, hence creating a good market for you.

4. Speeds up the business

   Consumers often tend to take quicker decisions and quicker purchases when their associates share with them a timely and creditable experience. This in turn speeds up your business and is good for you.

Ways to promote word of mouth marketing for your business.

1. Networking

   

   The more people you are in touch with, the more they know about you and the more they know about you, the more they know about your work. So if someone you are in touch with (and of course, are in good books of), comes in touch with a third person who needs the particular service you provide, s/he will refer the person to you. So get busy, you have work in your hand!

2. Self promotion

   To create a buzz about your work, it is vital that people know you. This is even simpler these days with sites like LinkedIn etc. Say, for instance, if you have come up with a blog and want people to have a look at it, just add its link at the end of the mail you send to people, or, mention it as your status message. Majority of us are curious people and will take a look at it. You could also build your website with your name as the domain name. Or tweet what you are up to and see what responses you get.

3. Organizing events

   You could organize an event, like a run, or a blood donation campaign. A charitable work is a good and noble way to connect to people and make people talk about you.

4. Responding

   Interacting with your consumers is an effective way of giving them an experience to share with others. Ask the people for their feedback, respond to their complaints, if they appreciate your work, accept it gracefully. Sending personalized notes on special occasions, like New Year, etc, too invites them to talk about you.

Word of mouth is a great technique to get your business across and create a large market for yourself. However, you must ensure excellent quality of service. A negative impression could just backfire. In case of a complaint, you should make sure you address them readily. After all, you do not want any one to be bad mouthing you, do you?

Today, you have cut-throat competition to get your business across people and connect with them.  But there is a hitch – how do you strike the right chord with the public? The best way would be to involve them in your business.

Now, in the current economic scenario, where your financial planning does not allow hiring more, and yet your business needs creative ideas, Crowd sourcing is the way to go.

What is crowd sourcing? In a lay mans’ language, it means outsourcing the work to the crowd, the general public.  A simple example of this would be Jimmy Wales’ Wikipedia, which uses open source software to allow its users to read as well contribute and edit articles on the site.

On a larger scale, you have Victor & Spoils, the first advertising agency built on crowd sourcing principles. Providing an alternative to the present model of advertising agencies, it intends to engage their customers for creative solution and build up a creative department made up of the world’s most talented people. The co-founders of Victor & Spoils are John Winsor, Claudia Batten and Evan Fry.

There are a number of ways you could go about crowd sourcing. Here are a few of them.

1. Competitions

   You could organize contests and invite people for, say designing a graphic or a print ad for your business.

2. Customization

   You could offer your customers personalized products by engaging them to design a product keeping their interests in mind.

3. Inviting suggestions

   You could ask the customers for feedback and ask them for their suggestions. You could use these suggestions for the improvement of your business.

Why crowd sourcing works?

Crowd sourcing works well for both your business and the crowd.

Here is how your business would benefit:

1. Get more from your employees

   When you open a particular department for the crowd, and you promise an incentive for the selected idea, it’s likely to get you responses from your own employees. This helps you harness the talent present in your own organization.

2. Get an insight on consumer desires

   Crowd sourcing would perhaps be a more effective way of getting to know what the consumers want rather than a survey.

3. Allowing innovation

   Consumers are attracted to things that are new in the market. Repetition bores them and puts them away. By crowd sourcing, you give space to innovative ideas. That way, you also allow your business to grow.

4. Pocket friendly resource

   Crowd sourcing would fit in even if you haven’t planned a large budget for your business. Here, you just have to reward a customer for his/her idea once and not pay a nice salary to a copywriter or a graphic designer.

Crowd sourcing has its reasons to attract the crowd as well.

1. Space for unemployed workers

   There is a large population of unemployed workers, who would like to participate where their area of interest lie. They definitely wouldn’t mind showing off their creative skills to perhaps their prospective employers!

2. Opportunity for amateurs

   Most of the places while hiring look for experience. This is where crowd sourcing can come to the rescue of freshers. They are desperate to get their talent across and remuneration is not a big issue for them at the initial stages. Crowd sourcing helps them do exactly that and get some experience as well.

3. Helps create a market

   Crowd sourcing helps create a market for both your business as you have a new idea in your kitty that will help you extend your business and your customer as he gets a market for his talent.

4. Revenue for talent

   Many of the ideas you need might be what others’ hobbies/talent revolve around.  Crowd sourcing might just get the customer value for his talent.

So you see, crowd sourcing could perhaps lead your business to a new level al-together. What you do need be careful about is extracting the right kind of idea from the crowd that will boost your business and compensating fairly to the participants.

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