Growing Your Business Through Customer Referrals

A strong customer base is something that small businesses always try to develop. It can be hard for you to gather new clients regardless of the methods being used. Marketing methods that are varied can be one of these techniques. Another one would be cold calling your target client. 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.

Customer referrals, if used in the correct manner, can become the backbone for your business development plan. Current customers who are pleased with your business can be your best form of advertising. You can drastically grow the amount of new customers your business generates if you are able to start getting referrals through you current customer base. The difficulty is in finding a efficient method for you to do so.

You can efficiently generate current customer referrals in a few different ways if you think of them. If a current customer of yours refers a new customer, you can offer a bonus or special offer to them as a reward. Both ends of this referral can receive the perk. 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.

Weighting the cost of new customers is something that must be done to compare. What was the amount of time you used to get this new client? Marketing you used also cost how much to develop? Spending time and developing marketing both end up costing you some money. Spending money on these methods usually doesn’t cost any more or less than offering a bonus for referrals. Do not forget that this referral bonus is mean to bring in a new customer, but also makes your current customer base more pleased with you.