There’s a lot to be said for word of mouth.

One of the most effective ways to grow a business is through referral or word of mouth marketing. After all if an existing client is pleased with the service or product that they are receiving why wouldn’t they pass your company’s details on to others with similar needs?

Referral marketing is something that all businesses, large or small, should be making use of in order to grow their business. It is one of the most powerful and cost effective tools that a company can use. Every business owner, if they are doing a good job for their clients, should expect to receive referrals.

One of the easiest ways to generate referrals is to ask for them. This could be as simple as when a client congratulates you on a job well done responding with a request for them to tell others about your good work or asking if they are aware of any companies that they think might benefit from your services

Referral marketing is one of the most powerful and cost effective tools that a company can use.

In the long term referral marketing can be built into your business strategy – if customers know that you will be asking them for referrals implicit within this is the knowledge that you will also do everything that you can to provide them with a high level of service so as to warrant the referrals.

If you don’t ask you won’t get

Your current clients might not be aware that you would welcome them passing your details on to others. Letting your clients know that you would welcome referrals is the first step towards receiving them.

This doesn’t need to sound as if you are desperate for business rather that because you provide customers with a high quality service you have found that most of your business comes from referrals.

Do a good job

It might seem obvious but you can only expect people to recommend your company if the service that you are providing to them is of a high enough standard to warrant it. You should set standards for the way you do business and ensure that they are achieved. It should go without saying that a satisfied customer is likely to speak in glowing terms about your company whereas an unhappy customer could do your reputation a lot of harm.

You should also consider asking clients to provide you with testimonial letter. These can add a lot of weight to a pitch for new business.

Here’s a few excerpts from some of our own testimonials.

Reciprocate

Reciprocal referrals can also be used to promote your business. This can be as simple as putting reciprocal links on yours and the client’s website along with some information about the company.

Take action

Once you start to receive referrals it is important to make sure that you act on them. When one of your clients passes a business referral on to you it is vital that you don’t waste the opportunity. You should find out from your contact what information about your company has been passed on to the person your business is being recommended to, whether they are aware that you will be contacting them. If possible the person who is doing the referring should make the initial contact so that your call is not unexpected.

Customers will generally praise products and services that are of a high quality, when they receive good service or find a superior product or service at a competitive price. Businesses should make the most of this tendency by using referral marketing to expand their customer base.