Thu, 11 Mar 2010 11:08:07 +0000

Word of Mouth Versus Key Influencers


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Word of Mouth Versus Key Influencers

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

This summary of an article from the December issue of the Journal of Advertising Research (good luck finding the issue online because I couldn’t) says that common word-of-mouth advertising by regular folks is more powerful than “key influencers.” Which is to say that sucking up to A-list bloggers may not be all that it’s cracked up to be. It seems like it’s bad day for celebrity endorsements.

James Coyle, assistant professor of marketing at Miami University’s Farmer School of Business, Elizabeth Lightfoot of CNET Networks, and Ted Smith and Amy Scott of MedTrackAlert conducted the study by surveying website visitors, conducting in-depth reviews, and analyzing website usage patterns. Said Coyle:

“We find that trying to track down key influencers, people who have extremely large social networks, is typically unnecessary and, more importantly, can actually limit a campaign or advertisement’s viral potential. Instead, marketers need to realize that the majority of their audience, not just the well-connected few, is eager and willing to pass along well-designed and relevant messages.”

I agree. I think that most key influencers are pompous, insecure jerks who take themselves way too seriously. And I say this knowing that you can rightfully accuse me of being one of them. The marketing lesson is this: Create something great, sow fields (not window boxes), “let a hundred flowers blossom,” and pray that “regular folks” will spread the word.

Guy Kawasaki is a managing director of Garage Technology Ventures, an early-stage venture capital firm. Previously, he was an Apple Fellow at Apple Computer, Inc. Guy is the author of nine books including Reality Check, The Art of the Start, Rules for Revolutionaries, How to Drive Your Competition Crazy, Selling the Dream, and The Macintosh Way.

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Thu, 11 Mar 2010 10:59:49 +0000

The Soft White Underbelly of Referral Marketing


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The Soft White Underbelly of Referral Marketing

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

Not that I want to be a wet blanket during referral week, but sometimes there’s room for reminders when things are not necessarily all that rosy. I love referrals and referral marketing, and I believe in the cause of referral week. Still, it’s good to keep the full spectrum in the picture. There are some dangers there.

1. Don’t recommend without knowing who you’re recommending

Back in the early days of Palo Alto Software we included a list of business planning consultants on bplans.com, our free business planning resource. The listing was free for users and consultants, and we certainly had no resources to check and validate the information included. So we offered it as a useful resource to some with some obvious buyer beware and check references advisories.

One day eight years ago I got a call from somebody saying a consultant on that list had taken $3,000 from him and never completed a business plan. He was blaming us for listing the consultant. I knew nothing about him and next to nothing about the consultant. Although we had put everything we could on the site to make it clear we were listing, rather than recommending, how do you think I felt? How satisfied do you think our customer was to be told that using somebody on our list was his fault, not ours? Technically, we were right. Commercially, we lost a customer. And we didn’t know the people on the list. Bad move. Business mistake.

Another time I got a similar call from a different customer making almost the same complaint about a different consultant. That second time, unlike the first, I knew that consultant. He had done business planning for an old college friend of mine, and my friend was very happy with the results. He was involved with getting several of our bplans.com sample companies financed. He was a good professional consultant.

So this second time, I called the accused consultant. And he said he’d been trying to give the client back the initial money because he couldn’t stand working with him. The client, my friend said, had been exaggerating the truth in the plan, had “sketchy ethics,” and, in a nutshell, wasn’t somebody he wanted to work with. But the client wouldn’t take the money back, because he wanted the consultant to get him financed, not to give him the money back.

The second story was better than the first, but neither is much fun. We pulled the consultant listings off of bplans.com as a result.

2. Don’t risk dollars for nickels and dimes

The saving grace for us in both of the two stories above was that we weren’t taking any money. That makes a huge difference. When things go bad (and sometimes they do) your situation is way worse if you’ve been taking money for referrals. In that case, maybe you have legal language like disclaimers and all, so you might not be legally liable (I’m not an attorney, I don’t know).

I’m always amazed when I see experts whose time is worth hundreds of dollars per hour getting involved with small shares of add-on products worth a few extra dollars. Does it make sense to stake your professional reputation on what amounts to as much as a free lunch every so often? I don’t think so. I say recommend cleanly, without financial interest, to preserve your credibility as an expert.

3. Don’t call revenue sharing or comarketing referral business

I think this is basic ethics, and doesn’t need saying. Still, especially during referral week, let’s agree that when you get a cut or a commission that’s not a referral. That’s a revenue share or a sale. And it’s not fair to pretend you’re just recommending somebody out of good will or generosity.

Tim is the president and founder of Palo Alto Software, founder of bplans.com, and a co-founder of Borland International.

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Thu, 11 Mar 2010 10:57:27 +0000

How To Use Surprise To Generate Word Of Mouth


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How To Use Surprise To Generate Word Of Mouth

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

Your customers live their life in a routine. I mean, we all do. We wake up at the same time; start our day off completing the same rituals; and then take the same route to work, switching on autopilot as soon as we get there. We’re creatures of habit. Our job as marketers is to both use and break these habits, replacing bad ones (not being our customer) with good ones (being our customer). But to do that, we first have to get their attention. We have to find a way to wake our customers from their zombie slumber and make them see us. We have to disrupt their routine.

And that’s where surprise marketing comes in.

Surprise breeds word of mouth by attacking the “been there, done that” mentality of customers and shattering it with something designed to cause a reaction. Because, the only thing to give the person who has everything is something they’ve never seen or thought of before.

How Surprise Breeds Worth Of Mouth

It’s said a lot that if you want people to talk about your business that you need to give them something to talk about. Well, that’s pretty much what surprise marketing does. It breaks up your customer’s every day and it gives them something new – tangible or not – to remember and hold on to. It ties you to an experience. As a small business owner, surprise marketing is perfectly suited for your business because it requires that you really know the people that you’re targeting. No one knows their audience as well as someone who lives in it every day. And once you know what they’re expecting, it’s your job to give them what they’re not.

Oprah utilized surprise marketing when she gave away 276 Pontiac G6s and offered Pontiac “immediate recognition as the feel-good automaker”. But in the real world (as opposed to Oprah-vision), surprise marketing doesn’t have to mean big dollars. It means creativity.

Surprise marketing works by giving someone something they needed at a time they weren’t expecting it. It’s chilled milk and cookies after a long day at Disney. It’s a person hiding in the Coke machine to hand deliver you and your friends a soda. It’s the bottle of water you’re handed by the hotel when you come back from a run.

It’s about creating experiences that people are going to want to share with their friends.

How To Surprise Your Customers

You surprise customers when you create something that is both personal and valuable to them. Decide what feeling you’re trying to inspire (awe, joy, excitement, disbelief, horror, etc) and then get creative about how you can deliver that. And when you’re doing it, think small. Don’t go for the elaborate plan. Go as small as you can with it, because it’s the little things done better than someone would ever expect that create the biggest buzz. That’s how you get people talking about you and inspire someone to make that referral – you tie an emotional response to what you’re doing.

How can a small business owner incorporate surprise marketing to inspire referrals from customers?

Show Up Where They Don’t Expert: When you drove to work today, there were certain things you expected to encounter– traffic, the usual landmarks, your same parking spot. You weren’t expecting to see, say, a 27-foot-long hot dog parked outside your building. And if you did, it would take a pack of wild dogs to stop you from talking about it. . And that’s exactly why Oscar Mayer created the Wienermobile and why they park it in random cities across the country. Because while you may have heard about it, you’d never expect it to show up in your hometown. And when it does, you talk about it.

Go Further Than You Have To: Go that extra step to create a WOW moment. Zappos does this by offering surprise overnight shipping so that customers unexpectedly receive their order just hours after they placed it. It creates an experience of “awe” when exactly what they wanted shows up when they weren’t expected it. Virgin America created its own WOW moment, rescuing 15 Chihuahuas from California. They did more than was required or expected and people talked.

Give Them Something Different: Lots of businesses offer free gifts along with a purchase. It’s the coupon slipped into the bag at the register, the free makeup brush someone gets with their purchase, a trial of a new scent, etc. What about giving them something they wouldn’t expect you to? Like chocolate-covered grasshoppers, perhaps. You don’t have to get pricey to surprise someone, you just have to deliver something they weren’t expecting.

Listen When They Think You’re Not: A young woman was sitting in a P.F. Chang twittering about how much she loves P.F.Chang’s chicken lettuce wraps – a pretty normal occurrence in today’s social media-heavy world, right? What she didn’t know was that an employee in the P.F. Chang’s Corporate Office saw the tweet, figured out what restaurant the customer was at and tracked her down to her specific table with the help of onsite staff. P.F. Chang’s then purchased the woman’s dinner for her and bought her dessert to say “thanks for visiting”. The Twitterer was shocked that the restaurant was listening so closely to customers and the story is now legend. Pretty cool, and not that difficult to pull off.

Make The Little Things, Big Things: Disneyworld left milk and cookies in Scott Stratten’s hotel room when he was there with his son so they could have a snack to enjoy together. The Westin Long Beach hands out water bottles to guests who walk into the hotel after a run. By getting those tiny, personal gestures correct you set up those moments that your customers will take home and want to brag about later. You create an experience and a memory by making the little things big things in your organization.

Obviously there are many other ways to surprise and capture the attention of your audience, but those will help get you started. Perhaps it’s the child in me, but I love using surprise marketing as a way to spread word of mouth and bring in referrals. It challenges you to look inward to change the course of someone’s day in a way that they’ll remember and positively associate with your brand. Not every profession is in the habit of creating memories. It’s the power of the unexpected and it doesn’t get much better than that.

Lisa Barone is Co-Founder and Chief Branding Officer at Outspoken Media, Inc., an Internet marketing company that specializes in providing clients with online reputation management, social media services and other Internet services. When she’s not blogging daily over at the Outspoken Media blog, you can find her guestposting on popular blogs like Search Engine Land, BlogWorldExpo, Sugarrae and a host of others.

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Wed, 10 Mar 2010 14:58:17 +0000

Build Your Brand So People Will Refer You


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Build Your Brand So People Will Refer You

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

As part of John Jantsch’s Referral Week, I’d like to focus on personal branding, as a way to become someone that people want to refer to others. I agree with John that the best way to grow a business is to get referrals because of how powerful word-of-mouth is. These days, it’s become more and more obvious that referrals can help you substantially build your brand presence, your web properties and your cash flow. The reason is because of the viral nature of the web, and how one video review of your service can morph into seven blog posts, six hundred tweets and a front page story on BusinessWeek.com within twenty-four hours. Five years ago, this line of events was impossible, but today it happens all of the time.

Here are some ways to become a brand that people want to refer:

Be interesting: People, who are interested in you, as a person, are more inclined to connect with you, do business with you and refer you to their own personal network. Your personal brand is not only defined by your job or company, but also by the activities you participate outside of the office and your hobbies. It might be hard to connect with someone on a professional level, but you might be able to bridge the relationship by talking about your golf game or the last season of Lost.

Be valuable: There’s no question that experts are judged based on hard and soft results. It’s not just being valuable though, because all of your competitors can do that. You need to be unique and offer something your competitors don’t and compete on prestige and quality, rather than price. Online, if you’re seen as a valuable resource, the press will call on you, customers will be to work with you, and when all is said and done, and people will refer you to even their third degree network.

Be generous: It’s rare that people share others products and services before they receive a sample for free. “Free” builds trust, authority and generates attention. If you want to be referred by others, then you’re going to have to give before you receive. The more generous you are with your network, by providing them with resources, helpful links, reports and advice, the more you will get back in return.

Be enabled: How are people going to refer you to their network, unless you enable them to do so. By providing your email address on your web page and by allowing people to share your content through Facebook, Digg, Twitter, Google Buzz and others, people can find you. If you don’t enable your network and empower them to refer you, without much effort, then you won’t get as many referrals.

Be networking: The more people you meet, the larger network you have and thus, the more people that can refer you to others. Meeting people is quite easy now due to the connectivity of the internet. Try and locate people that you’re actually interested in and can benefit from your services, instead of someone random you see on Twitter.

Dan Schawbel is the bestselling author of Me 2.0: Build a Powerful Brand to Achieve Career Success, an award winning blogger at Personal Branding Blog, the publisher of Personal Branding Magazine, a national speaker and consultant on branding and a BusinessWeek columnist. He’s been called a “Personal Branding Guru” by The New York Times and has been featured in over 150 media outlets.

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Wed, 10 Mar 2010 14:40:52 +0000

5 Ways to Make Your Business Easier to Recommend


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5 Ways to Make Your Business Easier to Recommend

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

If I were to ask you what the secret was to getting someone to recommend and refer your business, what would you say? Perhaps you might focus on the experience that you provide. Or you might believe that this is a behaviour that you should focus on illiciting from only your best customers. Now what if I told you that the single biggest reason someone chooses whether or not to refer your business has very little to do with their experience with you? That seems counter intuitive. Yet if this were false, then everyone who had a positive experience would share it with someone else. And everyone who had a negative one would do the same.

The point is, people don’t inherently share positive or negative experiences – they need an incentive to do it. The main problem is that anger or frustration IS an incentive. That’s why you hear the often repeated adage that it is much easier to get a customer to post a negative review than it is to post a positive one. Satisfaction, apparently, is not as powerful of a motivator as dissatisfaction. Yet despite this behaviour, there are ways to stack the odds in your favor. You probably already know that online opinions make a difference for your business. So the question you need to ask yourself (especially for Referral Week) is how you can make YOUR business easier for someone to share with a friend, family member or colleague. In other words, you need to be easier to recommend!

Here are 5 tips you should consider to help you achieve that:

Ask at the right moment. There is one moment when your customer is likely to be happiest of all, and that is the moment right after they buy something. The decision has been made, and anticipation is likely to follow. Why not ask them to share their experience with a friend right in that moment? Use a post-purchase survey online or encourage your customer to write a review or even take some extra business cards with them as they walk out of your retail location. The more you can do to get someone to recommend your business right after purchase, the more referrals you can generate.

Create different levels. It is tempting to think of recommendations and referrals in strict terms. Say online review, and your mind probably goes straight to the sort of review you might find on Amazon or TripAdvisor. In reality, there are many different levels of engagement when it comes to online reviews, and hand written experiences are the most extreme. A much simpler style is what you may have seen on Facebook … the simple thumbs up or thumbs down. Star ratings are another easy method. The lesson is simple … to create more likely situations where people will share their opinion, try to accommodate for different levels of effort and complexity.

Let them save your details. The magnet for your fridge that your real estate agent always gives you is the prime example of this idea. The opposing idea to #1, the philosophy behind letting your customers save your details easily is that you want to be there in the moment when they do get asked by someone to refer a business or service. Aside from fridge magnets, for the growing digital savvy customer, another way you may be able to stand out is to always include important keywords in your email communications (and always send email receipts). Then your customer can search their email account and even if they don’t remember your business name or have your card handy, you’re just a simple email search away.

Have a personality. The basic fact is that people don’t generally remember businesses, they remember other people. For this reason, having a personality is of paramount importance. When you can foster a personal connections with your business, you give them a reason to remember and recommend you to others. This is the power of word of mouth referrals, that we will remember working with someone who we respected and will be more likely to actively recommend that person and their business in any relevant situation.

Admit failure. This last tip will seem like an odd addition to the list. After all, we are generally taught to hide (or at least never admit) our failures for fear that it may make us or our businesses appear vulnerable. The surprising fact is that admitting a mistake can be one of the unintentionally best ways to humanize your business. We all make mistakes, but how you deal with them is the real question. Nothing can endear your business more to a customer than making a mistake an going overboard to correct it (and not making the same mistake again, of course). So the next time you or one of your employees makes a mistake, own up to it and actively fix it. You may find that in the process you converted an unhappy customer into a brand evangelist for life.

Rohit Bhargava is a founding member of the 360 Digital Influence group at Ogilvy and author of the award winning new marketing book Personality Not Included, an entertaining and useful guide for companies on how to use their personality to stand out. He is also a popular keynote speaker on marketing and business strategy and believes in being approachable

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Wed, 10 Mar 2010 14:24:01 +0000

Author of Book Yourself Solid Visits Referral Week


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Author of Book Yourself Solid Visits Referral Week

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest podcast featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

Marketing podcast with Michael Port (Click to listen, right click and Save As to download – subscribe now via iTunes

Michael PortToday’s special guest interview for the Duct Tape Marketing podcast is Michael Port. Michael Port has provided coaching and consulting services to over 20,000 business owners. He is the author of Book Yourself Solid, Beyond Booked Solid and The Contrarian Effect: Why It Pays (BIG) To Take Typical Sales Advice and Do The Opposite and the soon to be released The Think Big Manifesto.

In this episode Michael and I talked about the new ways in which smart marketers are building their expertise and tapping into networks, both on and offline to build marketing momentum.

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Tue, 09 Mar 2010 16:56:35 +0000

Why Word of Mouth Doesn’t Happen


Why Word of Mouth Doesn’t Happen

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

Sometimes, what you do is done as well as it can be done. It’s a service that people truly love, or a product they can’t live without. You’re doing everything right, but it’s not remarkable, at least not in the sense of “worth making a remark about.”

What’s up with that?

Here’s a smörgåsbord of reasons:

  1. It’s embarrassing to talk about. That’s why VD screening, no matter how well done, rarely turns into a viral [ahem] success.
  2. There’s no easy way to bring it up. This is similar to number 1, but involves opportunity. It’s easy to bring up, “hey, where’d you get that ring tone?” because the ring tone just interrupted everyone. It’s a lot harder to bring up the fact that you just got a massage.
  3. It might not feel cutting edge enough for your crowd. So, it’s not the thing that’s embarrassing, it’s the fact they you just found out about it. Don’t bring up your brand new Tivo with your friends from MIT. They’ll sneer at you.
  4. On a related front, it might feel too popular to profitably sneeze about. Sometimes bloggers hesitate to post on a popular source or topic because they worry they’ll seem lazy.
  5. You might like the exclusivity. If you have no trouble getting into a great restaurant or a wonderful club, perhaps you won’t tell the masses because you’re selfish…
  6. You might want to keep worlds from colliding. Some kids, for example, like the idea of being the only kid from their school at the summer camp they go to. They get to have two personalities, be two people, keep things separate.
  7. You might feel manipulated. Plenty of hip kids were happy to talk about Converse, but once big, bad Nike got involved, it felt different. Almost like they were being used.
  8. You might worry about your taste. Recommending a wine really strongly takes guts, because maybe, just maybe, your friends will hate the wine and think you tasteless.
  9. There are probably ten other big reasons, but they all lead to the same conclusions:

First, understand that people talk about you (or not talk about you) because of how it makes them feel, not how it makes you feel.

Second, if you’re going to build a business around word of mouth, better not have these things working against you.

Third, if you do, it may be a smart strategy to work directly to overcome them. That probably means changing the fundamental DNA of your experience and the story you tell to your users. “If you like us, tell your friends,” might feel like a fine start, but it’s certainly not going to get you there.

What will change the game is actually changing the game. Changing the experience of talking about you so fundamentally that people will choose to do it.

Seth Godin is author of ten books that have been bestsellers around the world. His most recent titles include The Dip and Linchpin. His books have been bestsellers around the world and changed the way people think about marketing, change and work.

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Tue, 09 Mar 2010 16:52:29 +0000

17 Terrific Tactics to Inspire Customer Love (and Get New Business)


17 Terrific Tactics to Inspire Customer Love (and Get New Business)

This content from: Duct Tape Marketing

This post is a special Make a Referral Week guest post featuring education on the subject of referrals and word of mouth marketing and making 1000 referrals to 1000 small businesses – check it out at Make a Referral Week 2010

There are two fundamental approaches to generate more business: The first is to focus on making your existing customers insanely happy, so that they want to tell others about how much they love you; the second is to simply be a resource, or be helpful, to those who aren’t customers yet.

Specifically, here are 17 tactics:

1. Have a goal. Set a clear goal with a specific timeline – for example, you want an x increase in referrals over the next six months. You know that old adage about how you can’t get there if you don’t know where you’re going? It’s true.

2. Monitor the web and primary social channels (Twitter, Facebook, LinkedIn) for people talking about you or your company. Say thank you (if they are saying nice things). Reach out and ask how you can help (if they aren’t).

3. And if they aren’t, BTW: Apologize for mistakes and solve problems fast. Speed is your ally.

4. Monitor the web and social channels (Twitter, Facebook, LinkedIn) for specific keywords relevant to your business. Be approachable, conversational, and helpful there. Engage, don’t sell.

5. Join LinkedIn groups relevant to your expertise or industry, and build conversations with relevant individuals. Chime in when you have something to contribute, and be helpful with your advice, suggestions, opinions. Again: It’s about engaging, not selling. (This bears repeating.)

6. Create a blog with content that helps your customers with a problem, or gives advice on a difficult situation, or walks them through a hard decision, or just takes the customer’s point of view, generally. Be a resource, and don’t simply toot your own horn.

7. When someone comments on your blog, respond. Talk back. Thank them for participating with a follow-up email. This is a dead-simple thing, and something a lot of people don’t do.

8. Read other relevant blogs in your industry, or by your customers, or would-be clients. Comment there, too. How? I almost want to repeat that bit about engaging-not-selling again, but I know you get it.

9. Put something on your front door (if you have one) that reminds people to tell their friends about you. (This is an idea from my friend Andy Sernovitz.

10. Put a “tell-a-friend” form on every page of your website. (Another idea from Andy.)

11. Put a special offer in easily forward-able mail.

12. Add a small gift and a word of mouth tool to every package you sell. Do something unexpected. (Andy once sent me a few packets of Bacon Salt with a copy of his new book, for example, which inspired me to blog and tweet about it.

13. Create a mechanism to keep in touch with existing customers or clients, even if they aren’t in buying mode. Perhaps you publish and “insider’s” newsletter, guest-blog on their blogs, or pick up the telephone and call every once in a while, just to say hello.

14. Be generous in your business practices. Go the extra mile. Offer extra service or follow-up support as a routine way of doing business.

15. Be generous with your own referrals.

16. Say thank you. Someone refers new business to you? Send them a note. An especially nice touch in this digital age is a handwritten card. The kind that arrives in the mail.

17. Be nice. Does this sound lame? It’s not. People refer people who treat them well, are approachable, and likeable. Be that person.

Your turn. How else do you generate referrals, or inspire positive word-of-mouth?

Ann Handley is the Chief Content Officer of MarketingProfs, the world’s largest community of marketers. Follow her on Twitter at @marketingprofs

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