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Any Business Can Benefit From Referral Marketing In These Three Ways
No matter what sort of business you are in (a business coach, auto dealer, attorney, etc.) you can gain a great deal of business from referrals.
Lots of industry professionals will tell you that it costs a lot less to convert a referral. Referrals will more likely make a purchase and are more prone to be repeat customers, and they can even bring in more referrals! Ignoring referrals is not a wise move, as they are a critical aspect when it comes to marketing. Referrals are a very affordable way for bringing in new leads that often result in new customers.
It can be very expensive to create and run even a minor ad campaign. It has been well-established that someone needs to see an ad at least 7 to 9 times before he or she considers acting on it.
Many business owners and firms understand that using referrals is an ideal way to obtain new customers and expand their company. Doing so is not as difficult as some may believe.
Consider these three important factors that explain why you need a referral marketing program:
- People usually get referrals from those they know and trust, so they are usually easier to convert into a paying customer. Once they are your client, you will usually find them loyal and may well refer friends and family to you as well. Lots of people referred wind up becoming customers over the long term.
- There is no more cost-effective method to bring in new customers, and there is almost no cost involved. It is much less costly, both time-wise and money-wise, to get new customers through referrals. If for no other reason, every small business should focus on referral marketing as a top priority in the marketing section of their business plan.
- Every customer you get can benefit your business beyond the simple one-time purchase they make from you. The additional customers that get referred to you are the added value. Your existing customers evolve into more than customers; they become your advertisers and, as such, are far more valuable than a one-time buyer.
In summary, referral marketing programs are more likely to provide a higher ROI than the majority of other kinds of marketing programs.