Alan Gayle is a sales and marketing consultant specialising in the construction industry. In this column he offers advice on how to make an impact in the market. This time he considers New Year resolutions.

Many (myself included) consider word-of-mouth to be the holy grail of marketing – as long as it is marketing and not just an excuse for doing nothing in the fond belief that your customers are doing all the work for you. That is likely to lead to the gradual loss of your customers to companies that are making more of an effort.

In the digital world, word-of-mouth (WoM) is known as viral marketing, because your message can spread across the internet like an unchecked virus. But no matter what you call it, it’s all about getting people to talk about your product or service in a positive way so they refer friends and colleagues to your business.

Despite what the online specialists might tell you, WoM has been a prime marketing objective since the earliest days of advertising. And with good reason. Statistically, a potential customer is seven times more likely to try your product or service if they have been referred to it by someone they know. 

There are several internet marketing specialists who rate viral marketing as the No1 marketing objective for small and medium sized businesses. 

With legions of marketing execs and business owners subscribed to his daily blog, Seth Godin is probably the best known. I am among their number and I went to see him speak on the subject last month in London.

Seth’s message is simple. The internet has changed everything. No matter what we want, Google et al have given us almost instant access to more buying choices than we are ever likely to need. For both business and pleasure, finding and researching suppliers online is now commonplace for all but the most die-hard computerphobe. 

To take advantage of the digital revolution, Seth tells us the first step is to create a product or service that is remarkable enough to be talked about. Hmmmmm.

Having done that, use WoM marketing to spread your message. Apple is the shining example that everyone aspires to follow. Nike, Ikea or the latest Quentin Tarrentino movie have all successfully employed the method.

There have been many well documented cases of great results using blogs, Twitter and Facebook. The most successful viral marketing campaigns have used videos on YouTube. If you haven’t seen Nike’s advert featuring Ronaldo and the Brazilian team showing off their skills in an airport you’re in for a treat. Even if you don’t like football (or Nike for that matter) you’ll probably still enjoy it. 

It is easy to get carried away. But ask yourself: “How well will this approach work for small businesses, with small budgets, in the building industry?”

In my experience, WoM can be highly successful in the building industry but you must know your market and stay focussed on your objectives. An advert with a gorilla playing the drums might work for Cadbury’s but might not achieve much of an RoI (return on investment) for most companies in our industry.

If you have the budget to fail a few times before you succeed, and social media is a key element of your marketing strategy, you can join countless others and use Twitter and Facebook to spread your message, although, except for LinkedIn, I’m not a big fan of social media for construction industry marketing. 

That is not to say I am not a big fan of WoM – because it is so effective. I am continually developing new WoM techniques to promote my clients more effectively.

Whether you’re a contractor, consultant or supplier, with a good knowledge of your target market and some creative thinking, WoM will certainly pay dividends.

This is a subject I will continue next month. In the meantime you can read Seth Godin’s blog here: www.sethgodin.com/sg/

Alan Gayle has worked in sales and marketing roles in the construction industry since 1983. Following a successful career with some of the UK’s leading building product manufacturers, he has worked in the stone sector for the past 10 years. He now runs Keystone Construction Marketing, a marketing agency specialising in the construction industry. The agency works with building contractors, subcontractors and building product suppliers to help them increase their sales and improve their margins.