How do I drive more word-of-mouth marketing?

Personal recommendations have always been the lifeblood of small business, but in the era of Facebook, Yelp and Google reviews, word of mouth (WOM) has taken on a different meaning and is now even more important to attract new customers and patients (studies show prospective customers attach as much credibility to an anonymous star rating as to a friend’s suggestion). It also requires a new, more tech-savvy response. Start by looking into an online review platform like Podium, Yotpo or Grade.us that centralizes the process and reaches out to customers via text messages to encourage them to leave reviews (search the phrase “online reputation management”). Of course, a larger megaphone won’t do you much good if the message is less than complimentary, so there’s still no getting away from the bedrock of WOM — excellent service. You can juice people’s experiences with your brand via community events, customer appreciation events, personal follow-ups, handwritten thank yous, and other random acts of generosity and goodwill that create delight and referrals. Keep in mind that WOM is so fluid it requires constant testing and experimenting: What stories to tell people about your store, what offers, what inside incentives will work? For example, a “Thank you for the referral” card that includes a voucher for $25 off the next purchase might work in one market. In another, giving an existing customer the opportunity to pass on the discount to a friend — or share it — may yield better results. Keep testing!

I’ve used my free email address for years and don’t really want to change it but I worry it looks unprofessional. Thoughts?

True, a lot of people don’t care, but a not insignificant portion of your customers will make a judgment of some sort. And these aren’t completely unfounded. Numerous marketing studies have found Gmail users to be predominantly younger city dwellers with more liberal views. Hotmail and AOL users are more likely to be found in the suburbs, while rural inhabitants are more likely to use Yahoo! Recently, The Times newspaper in Britain reported that a major insurer, Admiral, was quoting a higher rate to car owners who provided a Hotmail address. The firm argued some domain names were “associated with more accidents” than others, raising applicants’ risk profile. Given the way people make irrational assessments, and how important it is for an ECP to be viewed as professional and trustworthy, we’d recommend you make the change. It doesn’t cost much. For $3 a month, Gmail, for example, allows you to upgrade your account to get your own domain name.

 

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I carry two competing sports frame brands. Now one is implying I should drop the other slightly less popular brand or it will cut off supply? Is this legal?

There are some instances when you could take such a case to court — such as when an unreasonable restraint of trade or similar antitrust violation can be established, or when a store’s ability to conduct business is damaged. But these are exceptions; the law allows a miffed vendor to cut you off cold. “In general, companies in the U.S. are free to decide when to do business and when to stop doing business with another company,” says attorney Barbara Mandell, a member of Dykema Gossett PLLC, which focuses on antitrust law.

If an employee is consistently late (usually 30 minutes), can I dock his pay? Are there legal ramifications?

From a legal standpoint, it depends on whether he is a salaried or hourly employee. If the latter, he should be punching a clock, which will automatically deduct his time. If he is salaried, you have to pay him, late or not, says Suzanne DeVries, president of Diamond Staffing Solutions, adding that you should have the issue — and the consequences — covered in your employee manual. “You may need to make some tough and important decisions,” DeVries says. “It is never a good idea to let an employee get away with such behavior. It sets a bad example for those who are always on time.”


This article originally appeared in the September 2018 edition of INVISION.      

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