Many savvy business owners know a secret that allows them to spend less on advertising, yet still enjoy increased profits. They know that their existing customers are a great source of new leads.
In many cases, the business owner hasn’t even asked for referrals. Their customers just naturally tells other people about the company’s products and services. These referrals and “word of mouth advertising” are extremely powerful. And they’re free!
It is commonly known that a person needs to see an ad several times before they really notice it and act upon it. As you know, it can be very costly to invest in an ad on a regular basis, especially if the conversion rate is not very high. However, if ten of your current customers each tell three people about your products or services, that is thirty new customers who are ready to buy your products or services. They trust the opinion of the person who referred them to you and probably won’t waste any time on getting other quotes. They will buy from you on the knowledge that their friends won’t steer them in the wrong direction.
And these customers also become potential team members.
Simply providing great products and services as well as friendly and efficient customer service are easy ways to keep your customers happy, and this makes them more likely to spread the word about your business.
Some business owners choose to implement a rewards program to help stimulate their customers into telling their friends and family about them. For example, a business owner may send each of their customers a coupon for 25% off one item, as well as a rebate slip for the same amount. In order to use the rebate slip, the customer would need to give one of the coupons to a friend, and once the friend uses that coupon, the original customer could use their rebate slip.
Even if a business owner doesn’t have the time to implement a formal rewards program, they can still ask their current customers to tell their friends and family about their products and services. When asked for this type of simple favor, many customers are more than willing to comply without receiving anything in return.
You might also like these posts:
Affiliate
link (
March 18th, 2008 at 11:03 AM
To get repeat business and referrals you must be the first name to come to a customers mind. In order to be the first person or business that comes to a persons mind you need to express interest and appreciation in them in a personal way.
The world today has become very impersonal. People are busy. The technology that makes all our lives easier also isolates us at times by removing the need for personal contact.
Think of ways to show appreciation for your customers.
Add in some unexpected “extras.” One of our clients gives each customer a little piece of candy or chocolate with every invoice or business proposal – a very nice touch. Small gestures like this often have a huge impact. And, of course, it’s so easy.
Always remember people on important days. Holidays are great, but every one’s up on them. Remember birthdays and anniversaries, as well. It will be appreciated.
March 18th, 2008 at 12:12 PM
Very good point. I think providing personal contact and personalized service is how home based businesses can compete and thrive. We may not be able to compete with the big chains on price, but there’s a lot to be said for getting some quality, personal attention from a consultant. In my experience, superstores don’t provide much customer service at all.