Growing Your Business Through Customer Referrals

Building a customer base for your small business is very difficult. Regardless of the methods that are used, it is hard for them to gather a lot of new clients. One method can be an array of different marketing techniques. Potential client cold calling would be another one. You can even use direct mailings to potential client’s homes. Yet there is an untapped resource for many businesses. They fail to recognize the potential of the current customer referral.

If they are used in the right way customer referrals can become the main portion of your businesses plan to develop. The best advertisement for your business is your current customers who are pleased. Finding a way to generate referrals out of your customer base can allow you to grow your new customer base drastically more than you have in the past. The difficulty is in finding a efficient method for you to do so.

There are a few different ways that you can efficiently generate current customer referrals. One of the best ways is to offer a bonus or special offer to any new customer that is generated as the result of a referral. The perk can be given to the referrer and the referred. A $10 bonus can be offered to the new customer that you acquired and then you can turn around and give the same thing to your current client. This method invokes some added costs, which is really the only draw back.

Weighting the cost of new customers is something that must be done to compare. How much time did you spend gathering this new customer? How much money to you spend on the marketing developed? Marketing and time are both high cost methods for you to spend on. Offering a referral bonus often ends up being equal to the amount of money you spend on these other methods. A happy new customer is one benefit of a referral bonus and so is the fact that you are making your current customer happy as well.

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