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Translating the power of word-of-mouth

The success of the New Vanderlyn was gratifying no matter how Martin looked at it: revenues were up, vacancies were practically unheard of, guests paid their compliments to the manager and then repeated their praises to cousins and neighbors in Philadelphia and Boston. - Martin Dressler: The Tale of An American Dreamer

That's a Pulitzer Prize winning description of WOM, word-of-mouth, and its benefits for customers, the cousins and neighbors of those customers, and the businesses who make it their goal to generate an inspiring experience for their customers.

And here's a list of possible translations of this passage and these WOM-phrases that can be used in presentations to business leaders considering a word-of-mouth strategy.

* Revenues were up...

  • positive cash-flows are generated
  • consistent revenue growth
  • expansion can be financed from these growing internal cash-flows
  • Debt-free balance sheet 
  • Additional cash generated from reduced or eliminated interest expense.

* Vacancies were practically unheard of...

  • production's at full capacity
  • optimized asset utilization
  • increasing return on assets
  • demand exceeds supply
  • premium prices are justified
  • customers are willing to pay premium prices
  • premium experiences, services, can be delivered and done so profitably

* Guests paid their compliments to the manager and then repeated their praises to cousins and neighbors in Philadelphia and Boston

  • reduced marketing and advertising expenses resulting in higher, positive, cash-flows for the company
  • employees inspired and motivated from the positive feedback
  • lower employee turnover
  • lower employee recruiting costs
  • constantly improving talent pool
  • improved ability to recruit A-Players
  • new geographic markets penetrated at no additional costs
  • accelerating demand
  • premium prices sustainable
  • sustainable business model

My sense is that the power of word-of-mouth, as a sustainable, cash-flow, positive business model is not being translated into a language the owners and executives of businesses speak. I hope this list helps.


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