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The Power of Referral

Power of Referral Marketing from The Startup Garage

The process of getting new clients for a small startup is known to be one of the most intense struggles for a begging entrepreneur. As the doors of your startup open, marketing funds tend to be limited, brand awarenessbarely exists and new customers are hard to come by. However, if you own a small startup business you or your employees likely have gotten to know your customers well and even personally, so you have the opportunity to leverage these relationships to get referrals. The ability to use personal referrals could be your competitive advantage in a competitive market. The use of the following strategies could help you provoke some more referral customers for your business.

  • Start with consistent great service. No one is going to refer you if your products and services are average or vary in quality. Remember, when someone refers your business to a friend, that person is putting his name on the line too. So, if you want to get more referrals, you need to first make sure your services are truly worth referring. Give every customer the outstanding service your business is capable of providing.
  • Look for networking opportunities. You dont want to be considered the one who is always pitching and selling. However, you should let people know who you are and what you do. Even if they dont need your services, they may know someone who does.
  • Partner with complementary businesses. We refer local businesses all the time because this is our job to find other businesses that can help our customers grow their startup businesses. We have benefited from the working relationship that we have created with those businesses and we know they will bring referrals back to us.
  • Give customers incentives for referrals. Motivate your customers into referring you. The way to do this is to give them something in return for doing so. One of the most common ways to do this is to give them a discount on future purchases for each referral they give.
  • Create a list of customers who might want to help refer your business. If you know that you have done a good job and that your customers were happy, ask them if you can use their names and what you have done for them on your website or another prominent place where others can see it. Client testimonials are an important factor that can turn a possible lead into a new customer.

Most customers today have an incredible array of information to consider when choosing a product or service. Still, the most trusted source of information is the personal referral and your small startup business should take advantage of it.


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