Business referrals are important for any Business because they provide you with a way to grow your business with less cost and effort. It’s the very best way to increase your Business through word of mouth marketing.
A referral strategy is simply introducing new customers to your Business for a low acquisition cost. The ultimate goal is a referral based business that relies largely on referral strategies to generate business.
Referrals are the process through which Entrepreneurs can grow their businesses by encouraging their existing customers to promote their business for them.
To obtain Referrals, you need to identify who your target market is and who your ideal customer profile is. You must be clear on what you are offering and give people a good reason to assist you, i.e. they must get some benefit (what’s in it for me).
For a referral based Business to work, your service and products must be extraordinary. Just being good won’t do. If you want people to refer, your service and products have to be fantastic.
Thus for any Business, it is worthwhile to spend some time and resources to generate referrals.
Over time, referrals will not only make your Business more profitable, but shift costs and resources away from conventional marketing strategies into more personalised and cost-effective marketing strategies.