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Demystifying 
W o rd o f 
Mo ut h 
Er nes t 
Di c ht er 
With 
Marketing 
Legend 
PART THREE 
Why Customers Act 
on Referrals
W o rd O f 
Mo ut h 
Re fer ral s 
are a 
Rec u r ri n g 
3 St e p 
Process
These st eps are : 
Talking 
about 
Listening to
Ac t i n g o n 
t h e Re fer ral 
AND
In this 3 part 
series, find out 
why each step 
happens 
and 
how to use this 
knowledge to 
acquire more 
customers through 
word of mouth 
referrals... 
With the help of 
marketing legend, 
Ernest 
Dichter
W hy 
c us tomers 
ac t o n 
Re fer ral s
A ut h e nt i c 
Passion
“The real meaning of a 
product and of its effect to 
the user is revealed not only 
through the choice of the 
speaker’s words, but also 
through the discharge of 
emotions in inflection, face, 
and body expressions, 
and gestures.” 
Ernest 
Dichter 
writes
Having an awesome 
product and a 
devoted fan base 
will encourage 
passionate referrals.
your business 
is still on its 
way there? 
But what if...
You could back 
a charitable 
cause customers 
can get REALLY 
passionate about. 
(Choose carefully!)
For every pair of 
shoes sold, TOMS’ 
One for One 
campaign donates a 
pair of shoes to a 
child in need.
Since 2006, TOMS 
has sold and 
donated 10 million 
pairs of shoes. 
SOURCE: 
http://style.time.com/2013/06/26/toms-hits-10- 
million-mark-on-donated-shoes/
And that’s a lot of 
happy children!
37% 
of Millennials report 
being drawn to products 
with cause campaigns 
where their purchase is a 
form of support. 
84% 
Share because it’s 
a way to support 
causes or issues 
they care about 
SOURCE: 
http://barkley.s3.amazonaws.com/barkleyus/Amer 
icanMillennials.pdf 
SOURCE: 
http://coschedule.com/blog/why-people-share/
Ge n u i n e 
Compa s si o n
“That the speaker is genuinely 
concerned with the listener’s 
well-being or has his 
advantage at heart becomes 
eminently believable in cases in 
which the recommendation is 
geared to, and takes into 
account, the individual needs 
or special circumstances 
of the listener.” 
Ernest 
Dichter 
writes
This means a 
Referral should 
address specific 
needs, preferences 
or problems that a 
customer faces.
In ecommerce this 
comes in the 
form of product 
recommendations 
based on the 
customer’s 
preferences.
100% of the top 10 
retailers in the 
Internet Retailer 
500 use product 
recommendations. 
SOURCE: 
http://content.monetate.com/h/i/12311883-maximize-online 
-sales-with-product-recommendations#axzz2IdJfsKau
70% of Amazon’s 
homepage 
are product 
recommendations! 
SOURCE: 
http://content.monetate.com/h/i/12311883-maximize-online 
-sales-with-product-recommendations#axzz2IdJfsKau
Ac t ual P roo f
“Tangible evidence” that a 
product works, as seen in 
real life, “…serves to 
strengthen the impact … of a 
recommendation in cases in 
which personal intention or 
product relationship are not 
sufficiently convincing 
in themselves.” 
Ernest 
Dichter 
writes
Proof in marketing 
used to take the 
form of 
infomercials on TV
In ecommerce, 
customer reviews 
are your proof.
The average 
customer consults 
Eleven 
consumer reviews 
before a purchase. 
61% of US consumers 
have made 
purchases based 
on a blog review 
SOURCE: 
http://www.webershandwick.com/news/article/consumer-reviewe 
rs-wield-more-power-than-professional-critics-in-driving-pu 
SOURCE: 
http://www.social4retail.com/the-blog-econom 
y-blogging-stats-infographic-2014.html
Sembl a n c e 
o f Sec recy
When the speaker displays a 
“reluctance to divulge the source or 
brand name of a product” it can serve 
as sign to the listener that the 
product is so uniquely desirable the 
speaker doesn’t the want masses to 
know about this secret brand. “This 
refers to the well-known 
psychological phenomenon that the 
harder it is to get a desired object, 
the more desirable it becomes.” 
Ernest 
Dichter 
writes
By withholding the 
source or details 
about your product, 
you’ll create intrigue 
in customers.
The more 
unattainable an 
object is, the 
higher its 
perceived value is.
Gmail was highly 
exclusive during 
it’s first 3 years 
of service, 
requiring an 
invite to sign up. 
Social media was 
abuzz with 
requests 
for invites.
Gmail currently has 
425m 
users and its mobile 
app experiences 
29% year on year growth
Word of mouth has 
been shown to 
improve marketing 
effectiveness by 
up to 54%! 
Visit 
for more tips and 
strategies on using word 
of mouth to acquire 
more customers! 
SOURCE: 
http://blog.getambassador.com/word-of-mou 
th-marketing-statistics/ 
Blog.ReferralCandy.Com

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Demystifying Word of Mouth (Part 3) – Why Customers Act on Referrals

  • 1. Demystifying W o rd o f Mo ut h Er nes t Di c ht er With Marketing Legend PART THREE Why Customers Act on Referrals
  • 2. W o rd O f Mo ut h Re fer ral s are a Rec u r ri n g 3 St e p Process
  • 3. These st eps are : Talking about Listening to
  • 4. Ac t i n g o n t h e Re fer ral AND
  • 5. In this 3 part series, find out why each step happens and how to use this knowledge to acquire more customers through word of mouth referrals... With the help of marketing legend, Ernest Dichter
  • 6. W hy c us tomers ac t o n Re fer ral s
  • 7. A ut h e nt i c Passion
  • 8. “The real meaning of a product and of its effect to the user is revealed not only through the choice of the speaker’s words, but also through the discharge of emotions in inflection, face, and body expressions, and gestures.” Ernest Dichter writes
  • 9. Having an awesome product and a devoted fan base will encourage passionate referrals.
  • 10. your business is still on its way there? But what if...
  • 11. You could back a charitable cause customers can get REALLY passionate about. (Choose carefully!)
  • 12. For every pair of shoes sold, TOMS’ One for One campaign donates a pair of shoes to a child in need.
  • 13. Since 2006, TOMS has sold and donated 10 million pairs of shoes. SOURCE: http://style.time.com/2013/06/26/toms-hits-10- million-mark-on-donated-shoes/
  • 14. And that’s a lot of happy children!
  • 15. 37% of Millennials report being drawn to products with cause campaigns where their purchase is a form of support. 84% Share because it’s a way to support causes or issues they care about SOURCE: http://barkley.s3.amazonaws.com/barkleyus/Amer icanMillennials.pdf SOURCE: http://coschedule.com/blog/why-people-share/
  • 16. Ge n u i n e Compa s si o n
  • 17. “That the speaker is genuinely concerned with the listener’s well-being or has his advantage at heart becomes eminently believable in cases in which the recommendation is geared to, and takes into account, the individual needs or special circumstances of the listener.” Ernest Dichter writes
  • 18. This means a Referral should address specific needs, preferences or problems that a customer faces.
  • 19. In ecommerce this comes in the form of product recommendations based on the customer’s preferences.
  • 20. 100% of the top 10 retailers in the Internet Retailer 500 use product recommendations. SOURCE: http://content.monetate.com/h/i/12311883-maximize-online -sales-with-product-recommendations#axzz2IdJfsKau
  • 21. 70% of Amazon’s homepage are product recommendations! SOURCE: http://content.monetate.com/h/i/12311883-maximize-online -sales-with-product-recommendations#axzz2IdJfsKau
  • 22. Ac t ual P roo f
  • 23. “Tangible evidence” that a product works, as seen in real life, “…serves to strengthen the impact … of a recommendation in cases in which personal intention or product relationship are not sufficiently convincing in themselves.” Ernest Dichter writes
  • 24. Proof in marketing used to take the form of infomercials on TV
  • 25. In ecommerce, customer reviews are your proof.
  • 26. The average customer consults Eleven consumer reviews before a purchase. 61% of US consumers have made purchases based on a blog review SOURCE: http://www.webershandwick.com/news/article/consumer-reviewe rs-wield-more-power-than-professional-critics-in-driving-pu SOURCE: http://www.social4retail.com/the-blog-econom y-blogging-stats-infographic-2014.html
  • 27. Sembl a n c e o f Sec recy
  • 28. When the speaker displays a “reluctance to divulge the source or brand name of a product” it can serve as sign to the listener that the product is so uniquely desirable the speaker doesn’t the want masses to know about this secret brand. “This refers to the well-known psychological phenomenon that the harder it is to get a desired object, the more desirable it becomes.” Ernest Dichter writes
  • 29. By withholding the source or details about your product, you’ll create intrigue in customers.
  • 30. The more unattainable an object is, the higher its perceived value is.
  • 31. Gmail was highly exclusive during it’s first 3 years of service, requiring an invite to sign up. Social media was abuzz with requests for invites.
  • 32. Gmail currently has 425m users and its mobile app experiences 29% year on year growth
  • 33. Word of mouth has been shown to improve marketing effectiveness by up to 54%! Visit for more tips and strategies on using word of mouth to acquire more customers! SOURCE: http://blog.getambassador.com/word-of-mou th-marketing-statistics/ Blog.ReferralCandy.Com