Building a business through referrals

www.brandongaille.com

There is absolutely nothing more powerful than having your business being recommended by a satisfied customer.  A satisfied customer is one of the best assets that a startup can have in its marketing arsenal because that customer just by sharing his great customer experience can increase awareness about your company’s offerings thereby resulting in increased sales for your business.

For startup companies, referrals or word-of-mouth marketing as this activity is called, is critical to your business’s marketing strategy.   Referral Marketing or ‘word-of-mouth’ is the method of promoting products or services to new customers through a business' existing customer base, rather than through traditional advertising.

Referral marketing is also considered as one of the most effective methods of marketing.  Added to that, is also the fact that it is one of the least expensive methods because it relies heavily on the opinions and influences of someone else’s who share their good experience with other potential customers.

Referral marketing however works through customer engagement.  A business makes referrals a significant part of their business’s marketing by writing the element into their overall marketing campaign.  This means that the referral must affect every part of the marketing campaign i.e. sales, customer relationship management and anywhere else you can issue a call to action. 

Startup businesses are therefore encouraged to incorporate a referral marketing programme in their marketing campaign and to mention it whenever and wherever they can.  If you are producing a new ad or sending out an email blast include the offer and list the benefits.  Remember no matter how great the customer experience, customers are not always thinking of you.

Referral marketing is also boosted by the fact that consumers operate in the digital age where everything is ‘tweeted’ and shared via multiple online platforms.   We take advice from friends and associates about where to eat, where to shop and which smart phone is better; we look to the pop stars to see what they’re wearing and what’s trending. The response to your product may therefore be swift and this makes referral marketing an even more important factor in your business’s marketing campaign.

Referral marketing can be used by a wide cross section of businesses including restaurants, gyms and spas, retail stores and businesses in the hospitality sector.

As the method is dependent on good customer experience, the onus is therefore on the startup to ensure that the customer always has an outstanding experience.