Recently, a client of mine referred one of his colleagues to me. This got me thinking about the value of word of mouth.
Referrals can be a powerful way to build your business. Think about it, you’re much more likely to go to a restaurant a friend raved about over one you heard about on the radio.
After all, if your current customers don’t feel comfortable recommending your product or service, you probably need to be doing a better job.
There are several ways to get things started:
1) Create a Member-Get-A-Member or Refer-A-Friend Program. These types of programs encourage customers to refer others to you and reward them when they do. Oftentimes, the reward can be minimal either as a free gift or a discount off their next purchase.
Web site. People want to know that other people have tried your product or service and liked it. If you have happy customers, make sure others know about it.
3) Besides tapping into your client base, develop relationships with other businesses that might have similar clients but aren’t competitors. For example, an accountant and an insurance agent.
Other things to keep in mind:
1) Take good care of your current customers. It’s much easier to keep an existing one than acquire a new one.
2) Be sure you thank the person that referred you the business. It will make them want to do it again.
3) Remember that the type of product or service you provide will be a reflection on the person who gave the referral. Make sure you deliver.