Absolutely, positioning can be a powerful driver of word-of-mouth growth for Australian SMEs. It’s not just about what you do, but how you’re uniquely understood in the market. Many businesses underestimate this, focusing solely on features and benefits. But truly effective positioning creates a clear, compelling story that customers want to share.

Think of it this way: people don’t just buy products or services; they buy into ideas and narratives. A strong position gives them something to talk about, something that differentiates you from the competition. It’s the foundation for becoming ‘the’ choice, not just ‘a’ choice.

Here are a few key insights for SMEs looking to leverage positioning for word-of-mouth:

• Focus on a specific niche: Trying to be everything to everyone rarely works. Identifying a well-defined target audience and tailoring your message to their specific needs makes you more memorable and shareable.
• Highlight your unique value proposition: What do you do differently, and why should customers care? This isn’t about being ‘better’ overall, but about being uniquely suited to a particular customer segment.
• Create an emotional connection: People share experiences that evoke feelings. Positioning that taps into customer aspirations, values, or pain points is far more likely to generate conversation.
• Ensure consistency across all touchpoints: Your positioning needs to be reflected in your branding, messaging, customer service, and even your pricing. A disjointed experience undermines trust and reduces shareability.

We often see businesses attempt to ‘position’ themselves based on internal perceptions rather than customer understanding. Thorough market research – understanding how your target audience currently perceives alternatives – is crucial. This isn’t a one-time exercise; ongoing monitoring and refinement are essential, especially as the market evolves. Looking ahead, businesses that proactively analyse customer conversations and adapt their positioning will be best placed to capitalise on organic growth opportunities.

Ultimately, a well-defined and consistently communicated position transforms customers into advocates. It’s the fuel for word-of-mouth, and a far more sustainable growth strategy than relying solely on paid advertising. Your next step should be to review your current positioning statement – or create one if you don’t have it – and validate it with your target audience.