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The Value of Word-of-Mouth Referrals for your Business

by Bob - SU on 29 Apr 2011 09:06 AM

The most cost effective way to market a business is by word-of-mouth referrals.  People want to help others, and if they have received a great product or service, they will be more than happy to pass on their experience to their friends, family and sometimes complete strangers.

As a mortgage broker in California, Emery Financial found out almost by accident the power of social media, way before Facebook was even conceived. It came with simply understanding the needs of our clients. The referrals followed once they realized that our goals were more about building a loyal customer base than just making money.

Once you become known as an industry leader with the knowledge and skill to make the customer experience a special bond, something that sets you apart from all the big box competitors out there, you become more than a product or service. You become essential. 

Here are some ways to make your company worthy of the highly coveted word-of-mouth referral: 

1. Be honest. If you are up-front with your clients and let them know exactly what they can expect from you, and in turn what you expect from them, it will lead to a trust that builds the relationship.

2. Keep learning. You must think out of the box and stay one step ahead of industry trends. Knowledge is power, and profitable too. 

3. Be self-aware. Know why the customer decided to go with you and what sets you apart from the competition. They chose you for a reason. Build on that. 

4. Become a good listener. The value of someone who actually listens to the needs of the customer is passed on to others. 

5. Ask. If you have had an exceptionally good relationship with a client, it doesn’t hurt to ask for a referral. In fact, it can often be flattering that you think that much of them. 

6.  Forge business relationships. Someone who works in a related field can spread the word like wildfire. 

This alliance was built within the same client target base and is more valuable than any paid advertising could ever generate. Some experts say that word-of-mouth marketing is ten times greater than any other form of marketing.

The best sales team you could ever find is satisfied customers. You don’t have to pay them to spread the words of praise. When they become passionate about your reputation, it means you’ve earned it. They feel like they’ve become members of a special club, and will become advocates for your business to people who they think are special too.      

 

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