Education/training

Reap the rewards of referrals

Word-of-mouth advertising is the least expensive and the most effective form of marketing for your new small business. However, many entrepreneurs don't know how to encourage word-of-mouth referrals, or worse, don't invest any effort in this excellent promotional tactic.

ROGER PIERCE -- www.bizlaunch.ca
[ 2007-11-14 ]

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You can't expect people to naturally talk up your fantastic product or service -- they need a little encouragement. Here's how:

  • Ask for referrals. The first step is simple ... if you don't ask, you won't get referrals. Reach out to satisfied customers to ask them to please refer three people to your business. Be specific in your request by asking for mailing addresses, e-mail introductions or telephone numbers.
  • Make contact. Do what you told your customer you would do and make contact with their list of referrals. It's amazing how many entrepreneurs intend to contact those golden leads, yet don't do it. Remember that your customer has gone out of their way to help you.
  • Report back to your customer. Let the source of each referral know what happened when you contacted their leads. "Thank you for introducing me to your friend Bob. He may be interested in our services in three months, so I'm going to contact him at that time."
  • Reward your "referrer." It's never a good idea to offer a commission or "finder's fee" to your referring customer, who may feel cheapened by your cash compensation. However, surprise your customer with a gift certificate, hand-written thank-you note or similar gesture.

    • Thinking about starting a business? Learn how to create a successful one in the free Bell BizLaunch Seminar, How to Create Your Million $ Idea, delivered on Thurs. Nov. 22 from 6:30 to 8 p.m. at Metro Hall, 55 John St.(at King) in downtown Toronto. To register please visit www.bizlaunch.ca/bellseminars.

    Startup expert Roger Pierce advises startups at BizLaunch.ca.




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