Word-of-Mouth Advertising.It seems appropriate to kick-off our Agency’s new Advertising Blog with a comment on one of the oldest and most powerful forms of advertising – Word-of-Mouth.Over the years, we’ve observed and learned that nothing beats Word-of-Mouth Advertising.Why? Because people trust personal recommendations more than any other form of communication.Unfortunately, few advertisers… and even fewer advertising agencies… plan for and actually integrate Word-of-Mouth Advertising into their overall advertising campaigns.To be clear, building a business by Word-of-Mouth doesn’t just happen. A pro-active Word-of-Mouth Advertising effort is not for the faint of heart… or for the faint brand. Building a business with positive, Word-of-Mouth Advertising takes planning and execution. So… if you have the heart for it… and the brand to back it up, read on:First. An effective and efficient Word-of-Mouth Advertising effort requires a solid base of loyal customers. Why? Because Loyal Customers are more likely to personally recommend your company and its products to family, friends, neighbors & colleagues. Our research also shows that Loyal Customers are more likely to post positive recommendations online about your company and its products.(Note: Before we launch a Word-of-Mouth Advertising campaign for a client, we measure the company’s level of Customer Loyalty. If the Loyalty Metric falls below a certain threshold, we cancel the Word-of-Mouth Advertising effort and focus on helping the client address their Customer Loyalty issues.)Second. An effective and efficient Word-of-Mouth Advertising effort requires a well thought-out Strategic Plan of Action. Over the years we’ve observed and learned that the quality of your strategic thinking in this area can really drive a competitive advantage.Third. An effective and efficient Word-of-Mouth Advertising effort requires a robust Customer Relationship Management focus.(Note: I did not say expensive… I said robust. We’ve helped many small companies, with a well-earned brand reputation, beat larger competitors with bigger budgets.)Fourth. An effective and efficient Word-of-Mouth Advertising effort requires a robust, working understanding of Social Media Marketing & Advertising. These are the advertising tools that change the old adage about a satisfied customer telling 3 other people. With the growth of social networks of like minded people, Word-of-Mouth Advertising gets Turbo-charged.Finally. An effective and efficient Word-of-Mouth Advertising effort requires the capability and inclination to monitor and measure the performance of your Word-of-Mouth Advertising efforts. It also requires a couple of hours each month, from senior management, to engage in the Performance Review Process and subsequent action planning.