No matter what your business does – customers, clients, and general interest from your target audience are all bare requirements for business success.
Advertising. Marketing. Targeted campaigns. These strategies can be effective – especially when managed by an expert. But, there’s hardly any business move that has the lasting power of the referrals.
Need more convincing? Here’s just a few things referrals can do.
First things first. Word of mouth matters. In fact, according to a 2015 Verizon poll of small business owners, 85% reported that word of mouth is how the clear majority of customers find out about them.
While there’s little that can replace truly organic word of mouth – encouraging your existing customers to refer you to friends, families, and colleagues is sure to lead to conversations and name dropping. Current customers or clients are like walking billboards – all you need to do is provide products and services worth referring.
In other words, referral programs, incentive plans, or loyalty programs are all positive ways to put your business front and center in the minds of existing customers – meaning you’ll be worth mentioning.
Another hidden benefit of customer referrals? They can save you money. According to the Better Business Bureau, it can cost “…between 4 and 10 times more for a business to gain a new customer as opposed to keeping one.”
For your business, this means that by encouraging existing customers to refer their friends – potentially accomplished through referral rewards – you can gain new customers without shelling out more money for advertising efforts.
While referrals alone won’t free you from the need to advertise completely, they can be a great way to get your message heard – for free!
Just as referrals can promote the all-powerful word of mouth exchange e between customers and their social circles, it can also be boon to your connections with your existing customers.
Consider this: when you ask a customer to refer your services or products, you’re indirectly telling them that their opinion matters. In the words of one small business expert, this creates the positive feeling that “customer and company are working together.”
The effects of this current customer connection can be staggering. Made to feel like a trusted part of business, customers will envision your brand as a community – especially after they get their friends involved. This means more referrals, more interest, and more business for you.
Get Business Help
Your business is your passion – it’s what you do and who you are. That means it deserves the best.
Whether just aiming for more referrals or searching for a total business overall, the experts at Vision Marketing and Consulting can help. The brainchild of marketing guru Ethel Baumberg, Vision Marketing takes a holistic look at the small business ecosystem. With a team of experts well versed in everything from advertising to content creation, these pros can handle it all.
To schedule a consultation or for more marketing tips, contact Vision Marketing and Consulting today!