Advantages of Word-of-Mouth Marketing
By Anthony Cirillo, FACHE, ABC
According to
McKinsey, two-thirds of the U.S. economy is
influenced by word-of-mouth. The management
consulting firm notes that:
- One word-of-mouth referral is equal to 600
advertising exposures.
- 71% of people prefer a friend's recommendation
to advertising.
- Advertising market saturation accounts for a
37% decrease in advertising effectiveness.
Get the picture? Hospitals are spending millions
of dollars on mass media advertising that is often
influenced by competitor practices, knee-jerk
reactions, and physician demands. There is a better
way.
WOM
Word-of-mouth marketing. It is spread by what I
call “customer crusaders,” those who use your
services, are passionate about you, and recommend
you to others. You can leverage word-of-mouth
marketing by ensuring that those who encounter your
services have a great experience and spread the
word.
Collect data
When you collect detailed data about prospects
and customers, you collect information that helps
create a better experience. You gather information
that can help tailor and target your marketing
programs. There are no privacy concerns as long as
people willingly opt in to what you have to offer
and you remain compliant with HIPAA regulations.
Audit the experience
Take inventory of your audiences – community
residents, patients, donors, suppliers, regulators,
physicians, and others. Then conduct in-depth
interviews with selected audiences to uncover their
touch points.
Ask them to define their ideal experience. You
now have a blueprint for mapping a great experience
that people will then talk about.
Monitor the environment
People are talking about you, and you don’t know
it. Google your facility and see what search engines
unearth about your facility. In addition, research
negative phrases related to the industry, such as
medical errors, and see if your facility pops up.
Engage loyalists
Build relationships with loyalists by giving
something away. By giving something away, you create
“tipping points” for people to choose you. Let’s say
you and a competitor offer essentially the same
services at the same price. Quality and satisfaction
ratings are equal. How do people choose? Of course,
word-of-mouth is one way. But they also reflect back
on any experiences they may have had directly with
your facility. If it was a positive experience, then
you have created a tipping point and an advantage
for that person to consider you over your
competitor. Here are some examples:
- Offer an in-home safety assessment to seniors,
and introduce your hospital to people who may need
your services in the future. Local vendors might
participate and benefit.
- Start an affinity program and offer discounts
from local stores.
- Create community. Harley-Davidson has its road
rally; Saturn has its picnic. Both companies bring
together communities of people who congregate and
communicate.
- Develop services that naturally extend your
brand. Having a pharmacy or fitness center in your
facility is a brand extension. So is having a
concierge service for patients, families, and
employees.
Word-of-mouth can be managed for success through
a systematic process that requires rigorous data
collection. The endeavor really is as simple as
asking customers what they want and giving it to
them. Psst. Pass it on.
