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Understanding Word-of-Mouth Marketing

One of the most effective, low-cost ways of promoting your business is by using referrals from satisfied customers and by using word-of-mouth marketing.

Important steps for maximum effectiveness

Here are some important steps you could take to ensure maximum effectiveness of this marketing strategy:

1. As we have referenced earlier, join professional organizations and other networking groups of which your prospective customers are also members. You can thus become more visible and active in the community that actually matters to your business.
   
   
2. You could also have a list of small and home-based businesses that are complementary and non-competitive to yours. For example, if you run a legal consulting business, you could refer your clients to local accountants or financial planners. They in turn would reciprocate by referring their clients to you.
   
   
3. Using word-of-mouth marketing is about developing a relationship with people so that they grow to trust you. Research has indicated that people usually do business with people whom they trust and have confidence in. You, therefore, not only have to convince people of the benefits of your product, you also have to convince them that you have their best interests at heart.