Talk to practically any marketing expert, and most will say the same thing-that referrals are crucial for a young business to find success. When it comes to most new customers, the process of wooing them to buy your product or service may be long or drawn out, and at times it may seem like a hopeless effort. That's why referrals are so nice to have. They're prospects who have been pre-prepared to buy and are ready to become paying customers.
Given the importance of referrals, it's surprising how many small business owners pay little attention to this aspect of business. For companies of all sizes, word-of-mouth is a crucial way to maintain and grow business. The biggest companies use brand recognition and reviews to keep the buzz going, but smaller businesses don't always have these options available, which makes direct referrals all the more important.
Staying in touch
Of course, you can't get referrals from existing customers if they have all but forgotten about your existence. Especially if you have the type of business where people usually buy from you only once or very rarely due to the nature of your product, it's pretty easy for former customers to just let your great service slip from their minds. That's why you have to remind them of your existence.
Finding non-intrusive ways to stay in touch with old customers is one of the great challenges of marketing in the internet age. One doesn't want to come across as trying too hard, and there's always a danger that things like e-newsletters will venture into spam territory, but by finding the right balance you can keep your business present in the minds of people who have enjoyed your service.
An email newsletter is the best way to stay in touch with people who have bought from. Put together a newsletter on a weekly basis and send it out to everyone on your email list, making sure to avoid the pitfalls of spam and giving people the opportunity to opt out somewhere at the bottom of the email. Other options include blogs, direct mailing, and social networking feeds.
Asking for referrals
Meanwhile, there will be times when you can simply ask people for referrals. When you are at the end of a positive transaction with a customer, ask if they know anyone who might enjoy your service, and encourage them to refer that person to you. If you plant the seed at the moment when they are most happy with what they've bought from you, then they should be enthusiastic about the idea of referring their friends and associates to you.
And if you think your customers may need a little extra encouragement, don't be afraid to give referral incentives. For example, you can let your regular buyers know that you offer a 30% discount on transactions of a certain size any time they refer another buyer to you. The discount may temporarily hurt your bottom line, but the longer-term prospect of having additional buyers make it worthwhile.
Given the importance of referrals, it's surprising how many small business owners pay little attention to this aspect of business. For companies of all sizes, word-of-mouth is a crucial way to maintain and grow business. The biggest companies use brand recognition and reviews to keep the buzz going, but smaller businesses don't always have these options available, which makes direct referrals all the more important.
Staying in touch
Of course, you can't get referrals from existing customers if they have all but forgotten about your existence. Especially if you have the type of business where people usually buy from you only once or very rarely due to the nature of your product, it's pretty easy for former customers to just let your great service slip from their minds. That's why you have to remind them of your existence.
Finding non-intrusive ways to stay in touch with old customers is one of the great challenges of marketing in the internet age. One doesn't want to come across as trying too hard, and there's always a danger that things like e-newsletters will venture into spam territory, but by finding the right balance you can keep your business present in the minds of people who have enjoyed your service.
An email newsletter is the best way to stay in touch with people who have bought from. Put together a newsletter on a weekly basis and send it out to everyone on your email list, making sure to avoid the pitfalls of spam and giving people the opportunity to opt out somewhere at the bottom of the email. Other options include blogs, direct mailing, and social networking feeds.
Asking for referrals
Meanwhile, there will be times when you can simply ask people for referrals. When you are at the end of a positive transaction with a customer, ask if they know anyone who might enjoy your service, and encourage them to refer that person to you. If you plant the seed at the moment when they are most happy with what they've bought from you, then they should be enthusiastic about the idea of referring their friends and associates to you.
And if you think your customers may need a little extra encouragement, don't be afraid to give referral incentives. For example, you can let your regular buyers know that you offer a 30% discount on transactions of a certain size any time they refer another buyer to you. The discount may temporarily hurt your bottom line, but the longer-term prospect of having additional buyers make it worthwhile.