Referral Marketing is one of the least appreciated marketing efforts out there. Yet is also the biggest concern most small business owners have. How to get more referrals!?! Small businesses are always on the hunt for leads and enquiries from potential customers, whatever the shiniest, newest marketing technique is – many of us jump on board, focussing our time, attention and marketing budgets on these new tools to find these new customers, instead of actually drilling down and focussing on what really does offer a positive ROI. For greatest ROI - nothing beats free referrals from happy evangelist clients.
Referral marketing is easy.
Put simply, it’s asking your previous and current customers, those that know, love and continue to hire you or buy from you – if they know of anyone else, one of their contacts, who would be interested in buying from you.
It’s an often overlooked technique, but as the old saying goes…
“If you don’t ask, you don’t get.”
Referral Marketing Statistics
Here’s some interesting statistics which back this up:
- 92% of respondents trusted referrals from friends they knew – Nielsen
- 77% of consumers are more likely to buy a new product when learning about it from friends or family – Nielsen
- 83% of consumers are willing to refer after a positive experience, yet only 29% actually do – Texas Tech
- People are 4x more likely to buy when recommended by a friend – Nielsen
- The lifetime value of a new referral customer is 16% higher – Wharton School of Business
And finally, according to Gigaom Research – only 39 percent of marketers and small businesses actually use referral marketing regularly, but 43 percent of those who do use it acquire more than 35 percent of their new customers with it.
When you’re looking for your next lot of leads, remember – just ask!
If you are a digital platform or run a larger operation, capturing emails from prospects and existing clients to nurture through various email campaigns is a sure way to increase profitability, long term value from each customer, and increase overall branding and satisfaction amongst your clients.
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