If you were to ask many small school owners or probably the vast majority of small business owners in general what their number one source for leads and new students are, they are likely to say they came from word of mouth. Word of mouth is really another way of saying referral, however in the case of most people this means one thing: that they aren’t doing any marketing at all. They’re depending on the fact that on occasion, one of their clients (who likely just wandered in one day and stayed) is going to recommend them to a friend. They’re making the mistake of believing that one of the last three people they signed up in the last four months was a referral (or that when the new person came in, they happened to recognize someone in the business) that they’re marketing when a successful Word of Mouth Marketing Plan is much more than that. As such it has to be treated just as importantly and with as much discipline and deliberate action as any of the other channels for marketing your program.
What is a Word of Mouth Marketing Plan?
Word of Mouth Marketing is generating new business through referrals from others. They referrals can come from either clients or community partners that you’ve developed a relationship with. What makes the difference between an active and effective WOM plan and, as my Dad put it, the Oyster Method (you know, cause oysters have no propulsion and sit at the bottom of the water and eat whatever floats by—which isn’t usually the best stuff) is developing a systematic approach to generating consistent referrals. In the next few sections we’ll discuss different components of a good WOM program.
The Referral Continum:
It’s important to note that when someone refers a person, it’s the person that is making the referral, not the person receiving it that has the most to lose. This is because when someone refers someone else into your program they’re the one that is actually putting their reputation at risk because they have lent you their credibility by telling another person about your program. For this simple fact, people have a tendency to only refer people that they “know, like, and trust.” In order for your clients or community partners to be at all three they have to know you and what your program is all about (not necessarily have to be clients), they have to like you (because they’re referring YOU not your program), and finally they have to trust you enough that when they refer someone to you that you won’t damage their reputation by embarrassing them or dropping the ball on that referral.
So, the first step in developing a Word of Mouth program is a gut check—you have to ask yourself an important question and most importantly, be honest about the answer:
Am I referable?
Like me, your first reaction was “of course!” But, we can’t just be satisfied with that answer because it’s not about us. We’re already here. In order to get a true answer, you’re going to have to do a couple of things.
1) Examine every aspect of your facility and if you didn’t know what you know, would you want to train there? If you had no previous experience would you feel comfortable allowing your child to work out there? Is your training area clean? Like, really clean, I mean hospital disinfectant clean? Not just, is your equipment new or dilapidated, but is it safe too? Is it well lit or are their bulbs out? Is your space open and inviting and free of clutter or does it look one tep away from being one of those self-storage facility with an open space in the middle? Is your bathroom/changing areas clean? Do adult men and boys change in the same room at the same time? Does your ceiling have water stains where the roof previously leaks every rain storm?
All the time you have to be thinking “What impression would I get of this place if I had never been to a martial arts school and just walked in?” Many people that run club programs out of recreation centers, churches, the YMCA, health clubs etc. don’t have as much control over their training facilities as those that have their own place. If this is the case, you’re not off the hook. Get with the facilities manager and see what can be done about the upkeep. Anything that enhances their professionalism will only help you. If they’re uninterested or unwilling, find a new place for your program OR take it upon yourself to upkeep the place you train in. I once had a program attached to a daycare facility in a steel building at the back of the property. It was basically like training outdoors because to keep it from being like an oven we had to open the four large garage bay doors. We would get there two hours early every day before our classes. The first hour was spent cleaning, the second was spent prepping and getting ready for the actual classes.
2) Next, Examine your classes. This is where the rubber meets the road. Everything else is window draping but our classes are where we deliever on all the promises we’ve made. Again, taking away all of what you know and thinking about it from the perspective of yours students and someone who’s coming in and seeing it all of the first time. When you sit where the parents sit, do you classes look organized, orderly, and safe or does it look like the instructor is barely containing chaos? Is the class fun or could it qualify as lifeless and boring (regardless of how serious or important the information being taught is)? Is it a good workout? Do the students leave smiling and sweating? Is what’s being taught in each class related to what’s required to get to the next level? Is there variety? Would anyone call what comes out of your mouth during class (or any of the other instructors’ mouths) positive, negative, or verbally abusive? How would they characterize you? Do you seem bristly or friendly, focused or distracted, arrogant or passionate? How do the students interact? Are they friendly or cliquish? Are you cultivating a culture of inviting or one that’s closed off?
All of these factors and more, not only affect whether someone signs up with your school, but also whether they refer someone. Think about it. Have you ever been someplace because it was cheapest or because of some other unique place but wouldn’t recommend it to someone else because of how it would make you look? I’ll give you an example. I have a guy here in town that supplies t-shirts and other screen printing and embroidery items. He’s cheap, will let me order low quantities and is usually pretty fast. However, I have to ride him like Zorro. Otherwise, my order will be wrong or something else will be amiss. Consequently, I go to him because he’s cheap and we’re friendly, but I would NEVER recommend him to anyone because of the damage it would do to my credibility when he inevitably screwed up my referrals’ order. Your reputation is the most important thing and you wouldn’t just recommend anyone to your clients, similarly, they won’t just recommend you because they’re your clients or you’re friendly.
Beyond examining your program for yourself, you’ll need to bring your spouse or significant other through the school and ask them (especially if they’re not involved in martial arts) to give you their honest impression and what sort of things they would change or make better. Explain to them (and mean it, because they may be afraid of hurting your feelings) that you are committed to making your program better in all ways and need their honest opinion and advice. Get your mom, best friend or anyone else who can be honest with you. Don’t explain why or be defensive in any way. Simply take notes so that you can reflect on your own about how best to use the information. Of course, thank them for their help and take them out to lunch or something to let them know you’re not holding any kind of grudge. The reason I’m emphasizing all this last part is because this can be a very touchy subject for you (it is for me) and we don’t like hearing that what we’re investing our time, heart, and soul isn’t the best it can be. So, remove your emotions and really listen. If what others say makes sense, then take action. Don’t let fatigue be your excuse to not take action.
If you can do all of this, ask a few select clients or give everyone a parent survey that can not only get testimonials but give you vital info into how people see your program. Remember to be careful to not open the door for it to be a less funny version of a roast.
Required Reading: Business by Referral – Ivan Misner
Good explanation on the basics of referral marketing for martial arts schools. You’ve got to be worth referring to get referrals, no matter how many incentives you give.