A Rarely Considered Way to Gather New Customers

A strong customer base is something that small businesses always try to develop. Gathering new clients is very difficult to do no matter what kinds of methods are employed. An array of different marketing methods can be one method. Cold calling on potential consumers is another. If you want to you can send mailings directly to target customers at home. Many businesses have untapped resources though. Failing to take advantage of current client referrals is a huge mistake often made.

The back bone of your business development plan can be customer referrals if you use them in the right way. 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. An efficient method to do this can often be the difficult part to figure out.

By using your head you can really think of some great ways to generate referrals from your good customers. Any new customer can be offered a bonus or special offer if they are referred to you from a current customer of yours. This can be done on both ends of the referral. One example would be to offer a buy one get one free coupon to the current customer and the same offer to the referred customer you signed up. This method invokes some added costs, which is really the only draw back.

The normal cost of a new customer is something you must weight though. What was the amount of time you used to get this new client? How much money to you spend on the marketing developed? Both the time you spend and the marketing you develop cost you money. 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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