Most businesses seek to grow by promoting to the “unwashed masses” to get new customers, and getting new customers is becoming more and more difficult and expensive.
Google, Facebook and other social media are charging more for ads, and the number of social media outlets seems to grow daily, diluting the effectiveness of those advertisements.
Many local newspapers are going out of business, because former newspaper readers are getting their news for free online.
More and more people no longer use traditional media, like the Yellow Pages, to find service providers. They search online instead.
At one time, there were three major television networks. Now there are more than fifty over-the-air television networks and and many former viewers have stopped watching network television in favor of commercial-free online streaming and playing video games.
With the all of the marketing noise and dilution of promotional media, it’s hard to get your message through. And prospective customers have become very skeptical about whether advertisers can be trusted to tell the truth.
One reliable way to cut through the noise and be a trusted choice is referrals from customers.
People tend to believe reports of good experiences from their friends and family members.
How did you choose your family doctor or dentist? The odds are pretty good you chose based on a referral from a neighbor or family member.
The easiest way to double most businesses is to continue serving existing customers and for each customer to refer a friend or family member.
Customers can be shy about making referrals. Sometimes they are afraid their service provider can’t handle another customer. They might be afraid their friend or family member will be disappointed.
Business owners must continuously tell their clients they are looking for new business and encourage customers to introduce them to their friends and family members who might need their products or services.
One way to do this is using a referral promotion contest with prizes for the most referrals. Every referral should be rewarded.
Another way to do this is with a customer appreciation event. Customers are encouraged to bring their friends and relatives to a fun, low-key, non-selling event to get acquainted.
Regardless of your approach, you should express your sincere appreciation for a referral and make a big fuss about it. Depending on your business, a referral might be worth thousands of dollars to you.
Although most customers appreciate thank you gifts, some feel uncomfortable about receiving rewards for referrals as a potential conflict of interest. An alternative is to make a donation to their favorite charity.
Make a regular practice of encouraging referrals and double your business this year.