There are countless ways to generate business and some ways work better than others. How do you know where to invest your time and money, and whatβs right for your business?
As the owner of the Tucson Business Club, I get to see firsthand how powerful direct referrals can be for virtually any business or nonprofit. Generating referrals should be a big part of your marketing because referrals provide added benefits you do not see with most other forms of marketing. Here are a few of those benefits.
When people are recommended to you, it is usually from someone the client trusts. A recent Nielsen study shows 83 percent of people trust a recommendation from someone they know.
This element of trust allows for much higher conversion rates, creates instant credibility and saves you time converting the lead into a client.
People are recommended when they are ready to buy. They know what they want, and they want to buy it from you. In many cases yours is the only call they make and they are not shopping around for the cheapest prices.
People who do business by referral appreciate value, and are willing to pay for it. Because you are not competing on price, referrals provide a higher profit margin than many other forms of marketing.
Finally, people who do business by referral usually tell other people about you. Referrals are the only form of marketing that has an element of exponential, organic growth built in.
As your business grows by referral, it continues to grow without additional time and money being invested. All you need to do is take great care of the client, provide exceptional service and let everyone know you appreciate referrals.
Take a look at your marking plan and budget. How much time and energy are you investing in building business by referral? Read next weekβs Biz Tips article to learn specific tips on how to build your referral business.
