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Referral Marketing for Small Businesses

The most influential and powerful way of Referral Marketing for a small company is Word of Mouth (WoM). It also happens to be the most affordable. It gives people 3 great reasons to talk about you as well as make it more easy for the dialog to occur. 
  1. When they like your organization and you as person, they will wish to share, with their relatives and friends, the excellent experience with your service. 
  2. Conversations about your business bring them good feelings. Sending referrals over makes them feel bright and important. They feel nice if they could assist in solving problems. Give your loyal customers, a motive to talk. It makes them feel intelligent and unique. 
  3. They identify with a group. Some products have followers because people love discussing with others, who share mutual interests (sports fans, musicians, motorcycle owners, frequent flyers).
Below are 5 key reasons why WoM is still one of the brightest ways for Referral Marketing for Small Business 
  1. WoM is certainly one of the cheapest strategies to get new customers. It is easy to get new referrals without spending a fortune ! Open your eyes, get your mind set accurately and you will see all those chances for referrals, lying about your business – from current customers along with the other centers of influence. It's worth taking a chance. 
  2. A customer who comes in and is sent by someone, is worth a whole lot more. Hence, don't just measure the amount but compare this to any other technique you also use and measure the life-time value of your referred customers. In nearly all occasions you'll find there's a significant difference. 
  3. WoM customers are typically more interested to do business as compared to customers delivered through other methods. They are inclined to take less time to finalize a decision and crib less. Reason – because your finest customers refer (or send) only the finest people your way. Most often, customers refer people who are very similar to themselves. So, you need to be crystal clear about who your best customer is. 
  4. Imagine, if each of your present customers sends, only one individual in a year, you double your customer base each year. It is simple to design referral opportunities, when someone they know needs your service or merchandise, you come first to their mind. Question is – Are you unforgettable ? Do you do follow ups ? Have other people give referrals to you and also you made it really easy for customers ? Ask these questions for a leap in business. 
  5. A customer who comes by referral is more likely to send some more referrals. It becomes a virtuous cycle, an upward spiral. A sent customer already understands that referrals are welcomed by you and they have also experienced how you handled them (somebody who has been sent). 
How will you leverage your first referrals into growing pipelines of extra referrals ? How will you convert this trickle into a stream and then into a river ? Let us work together on this.

 Call now for a FREE 30 minutes Strategic Consultation. 

About the Author
Dr.  Sunil Pevekar  is a PGDM from IIMA and  a PhD from USA. He is an expert
on  10X Business Growth and Non–Traditional Marketing Tools & Techniques. He 
can be contacted on marketing@drsunilpevekar.com or +91 7983826309.

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