One of the easiest yet most overlooked sources of new business for small businesses is referrals. While many small business owners are hesitant to ask for referrals, if they better understood the value of word-of-mouth advertising or referrals, they’d see how impactful the effort can be. Let’s look at several ways small businesses benefit from referrals.
Cost-effective
Referral marketing is often more cost-effective than traditional advertising and other marketing methods. When satisfied customers refer friends, family, or colleagues to your business, you don’t need to spend money on advertising, which can be expensive. Referrals essentially serve as free word-of-mouth marketing. The largest investment in referral or word-of-mouth marketing is time. While some companies may opt to provide a “spiff” or other acknowledgment to those who refer new business, it’s not always necessary. Other companies might choose to reward both the referrer and the referred; a great idea that’s very effective but not necessary for a company to benefit from referrals.
READ MORE: https://azstrategicmarketingservices.com/how-small-businesses-benefit-from-referrals/
