Referral marketing- the easy way to get more customers
A powerful and inexpensive way to get
new customers is to harness the power of referral
marketing. Referral marketing is a systematized approach
that maximizes the power of word of mouth. Referral
marketing asks, promotes, and rewards customers, suppliers,
and other contacts for referring potential prospects
to a company. Here are some specific tips on how to
put referral marketing to best use:
1. Make it a condition of new customers
doing business with you to provide referrals- One
proven strategy for insuring an ongoing stream of
referred leads is to make getting referrals a condition
of new customers doing business with you. For example,
you would explain to your new customers that rather
than investing money in advertising you would rather
invest in providing new products and services for
your existing customers. That's why you have chosen
to build your business by asking that all of your
customers refer at least three prospective customers
to you. When asking for this from new customers, you
explain that you will not ask for these referrals
until your new customers has been a customer of yours
for 2 months- and you only would expect referrals
if your new customer was totally satisfied with the
service your company provides.
2. Prime the pump when asking for referrals-
Rather than simply asking for referrals, you should
describe to the referrer what an ideal prospect would
be for you. For example, Do you know of any companies
who have problems including (describe a problem your
company can solve)?
3. Install an automated referral program
on your web site-Install a script on your web site
where you offer a free gift to website visitors if
they refer others to your company. The script provides
a form for the website visitor to complete where names
and email addressed can be entered. The program provides
a place for the user to enter a message introducing
your company and then sends an email address to all
the names that are entered into the form.
4. Inform everyone that you build your
business based on referrals. For example, a doctor
placed a sign in his waiting room that reads We build
our medical practice by other satisfied patients telling
others about us. If you are happy with the care we
provide, we would appreciate you referring others
to us who need a doctor's help.
5. Exceed the expectations of your current
customers. There is no better way and easier way to
get referrals from your customers if they are more
than satisfied with the products and services you
provide.
6. Stay in constant touch with your
current customers. In a recent survey by the Chamber
of Commerce it was found that 85% of the reason customers
left their current supplier was because of a perceived
attitude of indifference. It is unreasonable to expect
referrals from your customers if you don't stay in
regular contact with them. Another secondary benefit
of staying in touch with your current customers is
that your customer attrition rate will decrease.
About the Author:
Frank David is a small business marketing
reporter. He focuses on methods and tips to help small
business market more effectively. http://www.smallbusinessmarketingworld.com/Club
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