A common networking theory is that ‘everybody’ is separated from one another by just six degrees of separation but, like the tooth fairy, it’s a complete myth – only less profitable.
Business referrals and word of mouth don’t just happen because we’re all ‘connected’ somehow; they come about through focussed effort.
In the 1960s and 1970s researcher Stanly Milgram arranged a series of experiments whereby people sent letters to people they didn’t know in another part of the country. They first had to send it to somebody who they thought might know the individual the package was addressed to. That person then passed it on.
It took, on average, six connections for some of the packages to reach their destination, hence the six degrees of separation theory. However, few people know that the overwhelming majority of packages never arrived and the most successful attempt yielded a 29 per cent success rate, and another just 5 per cent.
Increasingly studies are finding that people are being overwhelmed by marketing messages on a daily basis and are coping by taking short cuts in their buying decisions – they’re asking people they know and trust for advice.
Research by Intelliseek – a US based market intelligence company – has found that consumers are 50 per cent more likely to be influenced by word-of-mouth recommendations from their peers than by radio and TV ads – and the trend is growing.
This means word of mouth is going to become more and more important as time goes by.
For business owners and salespeople who want to generate word of mouth business, these three steps might come in useful:
1. Cultivate a sharp focus on one aspect of their business, product or service. Talking ‘generally’ about what you do tends to go over people’s heads and doesn’t have stick-ability. Instead, focus specifically on a profile of your ideal customer or, if you’re an accountant for example, on something that makes your specific skill set or service special – perhaps you specialise in a certain industry. Have a case study memorised that you can use as an example. Stories are powerful.
2. Develop a habit of asking people they encounter for specific referrals. Identify the decision maker in an organisation you want to do business with, and then ask around for any contacts who can arrange an introduction. If you ideal customer fits a specific demographic, tell people. Don’t use the word ‘anybody’ – it’s too general and has no stick-ability.
3. Cultivate one-on-one meetings with potential referrals sources. When you meet people don’t just take their business card – invite them to catch up for a coffee. Cultivate one-on-one relationships.
