Lei Jun's Entrepreneurship Course · 6 / 14

The True Nature of Word-of-Mouth: Exceeding Expectations

The internet makes word-of-mouth spread incredibly fast: if something is genuinely good, consumers will share it quickly. But what earns word-of-mouth? Lei Jun spent a long time working this out, and the answer came from two personal experiences: a disappointing trip to the Burj Al Arab, and a meal at Haidilao that moved him deeply.

WOM = Exceeding ExpectationsBurj Al Arab vs HaidilaoHigher Expectations, Harder to WinExceeding Expectations Isn't Hard
Why Did a Place You've Dreamed About for Years Disappoint?
Lei Jun had always wanted to visit Dubai, having heard about the Burj Al Arab hotel. He "thought about it for years" and heard endless rave reviews from people who'd been. When he finally went, he was quite disappointed. He walked in and it was all over-the-top opulence. "That kind of ostentatious grandeur sounds impressive, but think about it — what’s your first instinct? It feels gaudy, because nobody actually thinks that style looks good."

The problem wasn't the hotel itself. The Burj Al Arab's service was actually excellent. The problem was those "years of dreaming": expectations had been raised to the sky.

Interactive Demo 1 · Expectation vs. Experience: WOM Calculator

Word-of-mouth is not a function of experience alone — it's a function of "experience minus expectation." Drag the two sliders to see how the same level of experience generates different word-of-mouth under different expectations.

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Expectation
Experience

Both presets have the same experience score. Only the expectation differs. This is what Lei Jun meant: "When expectations are extremely high, you can never earn genuine word-of-mouth."

Interactive Demo 2 · Two Sides of Two Restaurants

Click the cards to flip them and see the surface impression versus the truth Lei Jun experienced firsthand.

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Burj Al Arab

7-star · Opulent grandeur · Dreamed about it for years · Heard endless rave reviews

Click to flip — see the truth

The service was actually exceptional

When you entered the restaurant, they first asked "Where are you from?" Answer Chinese, and a Mandarin-speaking server appeared immediately; first-time guests received gifts with a photo card to sign; dishes from around the world were introduced, and there was even a chef specially brought in from Suzhou, China, invited to chat with the head chef.

But expectations were sky-high: "After spending all that money to go there, if this is all it is, it’s no better than Haidilao." Conclusion: quite disappointed.
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Haidilao

A hotpot restaurant · Is the service really better than a five-star hotel? Probably not...

Click to flip — see the truth

One thing no five-star hotel can imitate

The servers' smiles that came from the heart. Hotel and airline smiles are trained, artificial; Haidilao's smile can't be faked. Lei Jun asked a server why she was so happy. She said: "I'm a laid-off factory worker, and Haidilao was willing to take me in and pays me 4,000 yuan a month. Do you think I wouldn't smile?" That moment moved him.

Does Haidilao do marketing? Have you ever seen a Haidilao ad? It lives in every single one of us.
The Word-of-Mouth Formula
"Word-of-mouth is simply exceeding expectations. When expectations are extremely high, you can never earn genuine word-of-mouth." Conversely, exceeding expectations is not actually hard: everything Haidilao does, you can do too — if you genuinely care. The most critical thing is whether you actually put in that thought, actually worked it out, and actually did it. Users can see it. When they discover these touches, they say: oh, so that's what it is.
OPC Perspective
WOM · The Solo Founder's Edge

Independent developers hold a card no large company can ever have: low expectations. Nobody expects an indie developer's product to be perfect. This is not a disadvantage — this is Haidilao's starting position.

  • Don't raise expectations: every time you write "best-in-class," "disruptive," or "redefining," you push yourself one step closer to Burj Al Arab territory. Say 80% of what you could say and leave 20% for users to discover themselves.
  • Care is visible — the same principle as the headphone jack detail in Xiaomi 1S: not every thoughtful touch gets noticed, but the moment a user finds one, it becomes an "oh, so that's it" word-of-mouth moment.
Exceeding Expectations · Near-Zero Cost

When users come in with "just trying it out" expectations, every ounce of genuine care you put in exceeds them.

  • Human authenticity — your version of "a smile from the heart": reply to feedback emails yourself; when you fix a reported bug, reach out to the user proactively; write changelogs like a human, not "improved certain experiences." These things corporate process can't produce — just as five-star hotels can't imitate Haidilao.
  • Cheap surprises: a paying user receives a handwritten thank-you; a feature requested late at night appears in the next release; near-zero cost, but users will screenshot and share it. Word-of-mouth spreads fast on the internet — and that applies to solo companies too.
Key Takeaways

WOM = Experience − Expectation: Word-of-mouth is simply exceeding expectations; when expectations are extremely high, genuine word-of-mouth is impossible.

Two-restaurant contrast: The Burj Al Arab lost because expectations were raised to the sky; Haidilao won on a smile that cannot be faked.

Exceeding expectations isn't hard: The hard part is genuinely caring. Every industry still has room to exceed expectations — the question is whether you do it.

Source: Compiled from Lei Jun's public entrepreneurship lectures