Referral marketing is using the power of mouth to advertise the products and services of your company. Referral marketing adopts the strategy of promoting and rewarding customers, suppliers and other contacts for referring prospective clients to the company.
Here are a few tips on how to get the best out of referral marketing:
1. When you do business with a client, make it a condition to provide referrals to you. Instead of investing money in advertising, explain to your customers about your products and services. Then ask them to refer at least three prospective customers to you. When asking for this from new customers, you should explain that you will not ask for these referrals until they have been a customer of yours for at least 2 months. You should also make it clear that you would expect referrals from them only if they are totally satisfied with the services provided by your company.
2. Specify your target while asking for referrals: Instead of simply asking for referrals, ask them for clients who might be an ideal prospect for your business, i.e. explain what problems your company can solve and ask them to refer clients who are facing such problems.
3. Install an automated referral program on your website: Provide free gifts to customers who refer other clients for your company. There should be a form to enter the details (names and e-mail) of the proposed client and a small message of introduction about your company. Then send the mail to all whose e-mail addresses have been entered in the form.
4. Provide them with best results: Exceed the expectations of your present clients. This is the best and easiest way to get referrals from your customers. If they are more than satisfied with the products and services you provide they will surely refer you to other customers.
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