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.