We all know that customer loyalty means repeat business, which we all need to stay in business. We also need to grow our business, which means adding new customers. In addition to all the advertising, direct mail, signs, and so on, are we overlooking the least expensive source? Satisfied and loyal customers can increase your business by referring new customers to you.
Referred customers are usually less apprehensive than other new customers are when first purchasing from you because they have friends, relatives, or acquaintances who are already pleased with your products or services. And when referred customers become satisfied customers, they too will send referrals, and your business can grow exponentially!
Provide some incentive for those who send you referrals that then become your customers. It can be a small discount, a free gift, or more points on their loyalty card. Some people may be very loyal to your business but won’t refer other people unless you ask them, so ask them. If they don’t want to be involved, ask for the referral name and call or mail that person and mention your customer’s name. This type of free word-of-mouth advertising is one of your best marketing tools. The power of a referral is stronger than most advertising.