Did you know that some 85% of small business owners agreed they that they solely depended on word-of-mouth referrals to strengthen growth and increase clientele. As shocking as that number might initially seem, on further consideration it makes sense. In fact, it might even be a higher number than that. Word of mouth marketing (WOMM) such as referrals and introductions are imperative to securing growth and profit for small businesses.
They also help humanize your business and the experience that you offer. You’re no longer just some company, you’re the small business owner who is running your business offering a great product, service, and overall experience.
We took some time to investigate why this is the case and how you can employ referral strategies in your own business (or enhance the ones you already have).
Who Do You Ask?
Ask any individual or group that you know will be invested or interested in your business and what your company offers. Seriously. Sell your business to anyone who will listen.
To ease yourself into the process, ask your friends and family to put the word out about your goods or services and start building your referral and review momentum. The added value that comes from someone being able to say “I know the guy who owns this store, or I know the lady who runs this website” is HUGE. Take advantage of it!
Having now built up some confidence, always, always, always ask customers to refer your goods and services on to other individuals, there is absolutely nothing odd about it. Next as your neighbours, other people in the same industry who have different services than you, friends of friends…talk to everyone you can about your business and why it is great! People know people, and people love to help people they know.
Another way to build up your referral community is with neighbouring businesses. As long as they are not direct competitors there’s no shame in asking them to refer their customers to you when the circumstances are right, and vice-versa.
How Do You Ask?
Understandably, most people may feel super awkward asking others to help promote their business, but it is super important. Referrals and positive reviews have a direct impact on profit and your business’s ability to grow and expand. Just do it.
It might feel weird the first time you ask someone to tell their friends about your business, product, or their experience, but those few seconds of discomfort is worth the potential revenue it will bring you. Plus the more you do this, the more used to it you get. It will be come second nature and you’ll just be asking for referrals all over the place. Think about all the times that you’ve been asked to recommend or review something…it’s really not that uncommon at all!
You could offer a few business cards and let your customers know they are free to hand them out to whoever they believe may be interested. If you and your customer are both business owners, within similar industries, then it may also be wise to set up some kind of referral partnership where you can both support each other in the marketplace. The sky is the limit.
Email Referrals, Links, and Social Media
Help amplify your word of mouth marketing efforts by also being intentional with your targeted asks. It is extremely easy to profit from email referrals and introductory links. Make sure you are collecting the email addresses of your customers so you can send them offers. Encourage them in the email to forward it to their friends!
Get on social media and ask for follows, shares and likes. Remember that social media is one big referral network. There are multiple ways people can refer you on social media either by leaving a review or commenting on a post. You can also ask customers to share about their experience on their Instagram stories and tag your business. Use it to your advantage!
A great way to make the most of reviews is to find additional ways to utilize them. This can be done in a few ways such as featuring them on your website or turning the best ones into social media posts and sharing them there. That way when anyone searches your business or your profiles online, they’re sure to see the positive things that others have to say about you.
Incentivize
To help get your customers to refer your business consider offering a discount or freebie should their referred friend make a purchase. I’m sure you’ve seen programs where if your friend signs up, both of you get some sort of discount or reward, so why not try that strategy out yourself. Alternately an effective and simple option is to run a contest and draw for a winner for every month or three months. Customers who already had a positive experience with your business will simply have an additional reason to recommend your business.
Engage
Be sure to always say thank you! Respond to the positive comments or reviews online, and acknowledge them for taking the time to recommend your business. It both validates the process and again shows others that you appreciate and really care about what your customers think of your business.
Final Words
Especially in precarious times when individuals are more caution about where they spend their money, you need to continue to engage your customers and the local area. Get out there and ask your friends, community, and customers to support your business. A face to face or personalized ask for a purchase or referral will drive your business forward. Trust us.
Since we’re on the topic of referrals, did you know that Merchant Growth has a referral program? If you are one of our clients, and you refer a friend, family member, supplier, or neighboring business owner, we will incentivize you (seriously, we love helping friends so the incentives are pretty good)! Get in touch with our customer success team at success@merchantgrowth.com to send us a referral – It’s worth a conversation!
And if you’ve had a positive experience working with us, we’d also appreciate if you would let your fellow small business owners know and leave us a review here. Or you can read more about what others have said about getting financing from us.
