Referral marketing is a proven key to new business
Referral marketing is a proven key to new business and should be used at every possible opportunity.
Wikipedia defines referral marketing as the most trusted marketing strategy. It is often defined by word of mouth.
Because this does this work so well and what can you do about it?
Know like and trust
First of all most selling is completed under the rules of know like and trust. If any of these apply you have a greater opportunity for success.
In addition, If someone is referred to you they immediately have trust as they have been conditioned to accept you and after a few words, you will be like old friends. Like is up to you.
Most of all referrals can be almost viral in their acceptance of a statement of quality or benefits.
A new Restaurant can be packed within days of opening with the word of mouth praising the new Chef or location.
Furthermore how often do we ask a question like, do you know a good Dentist or perhaps Doctor and then take the word of the information giver because they said he/she was good.
About know like and trust in business.
Repay the favour for referrals
It is Important for a business to acknowledge where possible the contribution or the party making the referral. Due to the fact that we all like to be acknowledged and made to feel good with a thank you for our effort.
In addition, my Chiropractor has a prominent whiteboard stating the latest referrals so everyone going to the surgery can see the names.
As a result, this acts as a promoter to be on the board and to be seen as helping.
Furthermore, I have a business buddy in an occupation a bit like my own. When I am asked do I do this job I just say no but my mate will fix it, he will call you back shortly. He pays me a generous commission if they sign on and this forms part of my regular income. I never miss an opportunity to make a referral.
Use referrals at every opportunity
The cost of customer acquisition is really the sum of all your promotions, signs, materials divided by the number of new customers. Take a few minutes and you will soon realize the cost of getting a customer.
Especially relevant is If they walk through the door from a referral they are a free start, make the most of it.
Ways to get referrals
ASK. Nothing easier than asking for referrals, if your customer likes you it is not a problem.
Send out a newsletter or flyer with an incentive for people to add referrals. It works.
Set up a sign or newsletter rewarding those that refer people, it encourages others.
Offer a good incentive or reward for referrals. Makes me jump I am sure it will with others
Refer me on
Finally my Site www.newbusinessonline .com is full of ideas for all business owners. We talk about websites, marketing. Sales and much more.
In conclusion, share the site with friends and sign up for more articles that support small business
Peter Hanley
home
