Here at Referralcandy, we're advocates of the power of word of mouth in acquiring new customers. We also believe it could be more effectively utilised with an understanding of how it works. We love how Brand Autopsy’s article “Ernest Dichter on Word of Mouth Marketing” explains the process, so we distilled the key points of the article with illustrations and statistics. Enjoy!

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/
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