Marketing: Referrals and Small Businesses

Small businesses thrive off of referrals. It is the best and easiest way to increase their amount of clients and get the word around about what they have to offer. Because of this, it is crucial that one is informed of how to properly and successfully obtain them.

The first and most important aspect of this part of marketing is to simply earn them. Make sure that the company or product being marketed it referral-worthy. This is something that can be review when building its marketing mix. The company or product should have something that would make people want to tell everyone they know about it. It seems so simple but neglecting this step can make the biggest impact.

Once that is established and is explicitly stated, one should choose a specific time and situation that is adequate to ask the customer for a referral. Consider that person’s situation and experience with the product or company and make sure that they will be willing to provide a positive referral. Start off by informing them why it would be both in the company and their own best interest to provide them with that referral. It could be something as simple as, this will help the company and product grow and will allow restocking in the future, or an incentive can be thrown in too. This includes something like a raffle where every person who refers another customer will be entered to win a big prize. In doing so, the customer will be motivated to speak highly of the company or product and will play a big part in the expansion of the company.

Furthermore, it is important to keep track of one’s referral including where they came from and in what form. This can simply be part of checking out as a new customer where they will be asked if they were referred and if so by who and in what form. By doing so, a company can see what form is easiest to reach their potential customers and alter their marketing mix accordingly. Additionally, it is a nice gesture to explicitly thank the customers who have referred people to that business. Inform them exactly why is means so much and express gratitude. In conclusion, one’s customers is the easiest and most inexpensive way to grow a business and is one aspect that should be carefully thought out in order to see a clear path of success!

By Sofia Gonzalez