Referrals - Having Your Customers Get More Customers For Your Business

The Author of the most practical business book - Secrets To Retail Riches – provides the following article on how to have your customers actively refer other customers to your business!

Referrals –

It cost you money to obtain new customers. This article discusses how those new customers can attract you more new customers, without having to go through the same expense to obtain them.

One of the most powerful tools you can have to market your business is – your customers! If they have bought from you before and are happy with the purchase, then they are likely to deal with you again. They are also likely to tell their friends and family about you.

Remember people have become quite jaded to most forms of advertising and what businesses have to say about themselves. So you can spend copious amounts on marketing and advertising promoting your message that people may never believe. Yet if a close friend or family member tells them the same message, they are likely to believe it.

So ask your customers to recommend you to their friends. Ask them if they know anyone who could also benefit from your products. If so, ask them to speak to them on your behalf.

I need to cover a simple examples here to show you how important this is and how much of a difference this will make to your bottom line. It will show you the true value of certain repeat customers.

Few businesses are able to determine who their repeat customers are or how much they would spend. You however, should have started building your database and would have a basic idea of how much your average customer spends with you.

If you do have these sort of figures available for your business, use those figures as I have below, to see the true value of your repeat customer.

Example 1

If John X purchases from you (on average) once every two months and spends (on average) $100 each time, then John X is obviously worth $600 a year to your business. This would equate to $6000 he would spend with you over 10 years.

However John X could be worth a lot more to your business, if he were to bring extra clients (his colleagues, friends or family) to you.

Lets say he just introduced 2 new people to your business who spent as much as he did, as often he did. The value to your business is now $1800 a year (3 people now spending $100 every 2 months), for virtually no cost to you! This would equate to $18,000 over 10 years.

What if he introduced more than 2 people. What if he introduced 10? John X plus 10 others, all spending $100 every 2 months equals $6,600 a year and $66,000 over 10 years. All because of one customer.

So why would John X do this and what can you do to get him and many other customers like him to introduce many more regular buyers to your business?

You need to have great products and extraordinary service. You have to have a standout USP and a strong and unique guarantee. These things are what makes your business stand out from the others. It is these same traits that allow you to sell at a higher price than your competitors, but still attract more customers.

Having done all that, you now need incentives to encourage your loyal customers to remain loyal and to introduce new customers to your business.

This can be done through a referral program.

You need to make your loyal customer feel special. Some would even say you need to make all your customers feel special in order to make them loyal customers. Introduce the personal touch, give them chocolates, birthday cards, champagne etc… free gifts or special privileges for special members – Platinum VIP members.

To become one of these Platinum VIP members, your customer needs to actively refer new business to you. In doing so, you will reward them with free gifts or services. Why? – because this is the cheapest and most effective way of bringing in new business.

One friend recommending your business to another friend has far greater impact than any other forms of advertising combined. The free gift or service you give away will be relatively insignificant, given the increase in customers and sales this generates for your business.

The customer when referring his friends or family to your business, must let them now that he is being rewarded for doing so. This prevents the new customer from feeling like this is a trick or a scam. It also entices them to then refer friends for the same rewards.

I can help you with that and every aspect of your business through my step by step, hand holding mentoring program. If you would like more information about this, go to www.SpecialtyShopSuccess.com

At this site you can access over $2,000 of bonuses for FREE to help you and your business.

© Andrew Carter 2008 – not to be reproduced without including the Authors Bio with the article.

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