There are many merchant programs on the market that claims to boost sales by referrals. The way I see it, nothing tops the actual "word of mouth" referral. Although we live in a large city like Toronto, it is a stunning fact that commercials do little to no effect for merchants. Each commercial costs $1000 to $10,000 but the actual sales generated is minimal. Here are some of the reasons:
1. Everyone sells the same product lines: I get calls from people asking "Do you have Pronovias bridal gowns?" or "Do you carry Maggie Sottero?". As soon as I said "No, we are couture and have our own line." The other end hangs up. This city has become so self absorbed in brand names, that no one wants to see or try something different. Price comparison has run rampant, both on and off the internet.
2. "Word of Mouth" or the big brands removes sensible decisions: A neighbour of mine got married, but bought a $1200 brand name dress from another store. She asked me what I thought about her dress. Well, according to me, her dress was only worth $600 tops. Because at my store, you can get much higher quality and better style for $1200. Why did she buy the brand name? It's because this brand appeared in a magazine. Why did she go to the other store? It's because she was introduced by her friend. I am not saying "Word of Mouth" isn't good. It's that it appears as though women tend to lack the ability to think on their own when it comes to wedding dresses.
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