Word of Mouth Marketing Has Built Many a Profitable Company
by John Jantsch
Word of mouth is one of the best ways to get new customers, but most businesses don't do much to systematically put it to work. These marketing ideas can help you get more referrals.
It's just human nature isn't it. If you get a good deal on something you want to brag about it. Or if someone asks you who painted your house and you were really happy with how the job went you have no problem telling them what great service the company provided.
That word of mouth advertising is invaluable and that's what I'm going to talk about today. In Duct Tape terms I call it referral marketing. Most business owners are familiar with this type of marketing and in fact when I ask business owners how they built their business they almost always tell me that initially it was through word of mouth.
Yet rarely do I find businesses that take this fact and turn it into the business-generating powerhouse that it is. The key, like most Duct Tape marketing strategies, is a systematic approach. While businesses know that they receive referrals few do much to systematically generate them. By that I mean making the generation of leads through referrals an integral part of their marketing. So how do you do that...first you make giving you high quality referrals easy. Show them how to do it. In fact, do it for them.
A financial advisor wants to do more business with individuals from a certain neighborhood so instead of - Do you know anyone to recommend to me? He says here is a list of your neighbors do you see anyone on this list that you could send this note to. Different isn't it.
Think referral system and make it part of how you do business. Make referrals a condition of doing business with you. A dentist only takes on new clients that come to him by way of referral. Each new client also agrees to refer two more customers within the first 6 months. He charges 30% more than the average for his services.
Offer your clients discounts for referring new business. Even pay for referrals. It is the most cost effective marketing you can do.
Best of all if you build an effective referral system you will never cold call again.