The Simplest Way to Grow Your Business…for FREE

Posted on: October 16, 2013 by in Uncategorized
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Word-of-mouth is the best form of advertising because not only is it free but customers who have been referred make the best customers. Its been proven that they have a higher lifetime value, are more loyal, less sensitive to price and are more willing to refer others.

But most companies pay little attention to this source of easy profits. If you’re not taking advantage of this opportunity, you’re missing a potentially huge area of growth. Implementing a formal referral system is the best approach to making the most of word of mouth advertising. In my first business I saw a 25% boost in referrals once I put a formal system in place. And I regularly asked customers for referrals before creating the system.

Create a Formal Referral System

Your referral system needs to be tailored to your business but in general you should offer incentives to customers to refer their family, friends and associates who could benefit from your products or services. Incentives might be credit towards products and services, a chance to win a prize, a gift card to a local restaurant or whatever makes sense for your customer base. You can use referral business cards that provide company information on one side and spell out the referral program on the other.

The key to making the system as effective as possible is to make it a company wide policy and standard operating procedure. All sales staff, employees, vendors, customers and other associates, need to understand the program and be able to communicate it effectively to others. Results need to be tracked and the system needs to be tested and tweaked until you find what works best.

Make creating a formal referral system a priority and if it is cemented into your company, you will grow your business in the best and simplest way possible.

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