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From social media marketing to content marketing and Google advertising, these days, there are a myriad of ways to market your small business. And, small businesses that want to grow need to utilize them all.

While all of the modern small business marketing channels are important for future growth and success, none of them compare to the power of good, old-fashioned referrals.

Here’s a closer look at why small businesses need referrals and how to get them.

What are referrals?

A referral is simply when a satisfied customer or client tells their friends, family or colleagues about your small business.

The best referrals are unsolicited — meaning, the customer wasn’t asked to leave a review or give a testimonial — because they carry more weight. After all, if someone goes out of their way to tell you how much they love your product or service, that says a lot.

Why do referrals matter for small businesses?

There are countless reasons why referrals matter for small business owners, but here are a couple of the most important ones:

Referrals are cost-effective

One of the best things about referrals is that they’re essentially free. You don’t have to spend any money to get them, unlike most other marketing channels.

Of course, you may need to invest in some referral-generating activities, like giving away free samples or hosting a contest. But, overall, referrals are a very cost-effective form of marketing.

Referrals are more likely to lead to conversions

When someone is referred to your small business by a friend or family member, they’re more likely to become a paying customer than someone who found you through a Google search.

This is because referrals come with a built-in level of trust. If someone we know and trust tells us about a great product or service, we’re much more likely to check it out than if we just saw an ad for it.

Nothing compares to a word-of-mouth referral when it comes to trust. A simple referral can carry more trust than even the most well-crafted marketing message.

How to get referrals for your small business

 

Asking for referrals for your business is probably the most straightforward way to get them.

But, if you feel awkward about the idea of asking a customer or client for a referral, you’re not alone. Many small business owners feel the same way. And, as we said, unsolicited referrals are gold for your business.

Luckily, there are lots of things you can do to get more referrals without having to come right out and ask for them.

4 tips for getting referrals without asking for them

#1. Send a thank-you gift package

After someone has made a purchase or received a service from your business, saying thank you for their business can go a long way toward improving your customer experience and making a good impression.

In addition to writing a thank you note, include a little gift, like a piece of candy, branded magnet or pen.

One of the best ways to show your thanks while also increasing the chance that you’ll get a referral is to send a gift card or a discount for a new customer that they can pass along to a friend, neighbor or family member.

This way, they’ll not only get the message that you’re thankful for their business, but you’ll also give them an incentive to refer someone to your business, and you’ll be top of mind when they do.

#2. Send a follow-up email

Sending follow-up thank-you packages to all of your customers through the regular mail can get expensive, and fast. Luckily, there’s another option that costs a lot less and works just as well — email marketing.

After a product has been purchased or a service has been completed, send a follow-up email to thank the customer for their business, ask for feedback about their experience and send a small gift.

Just like we previously mentioned, in addition to sending something your customer can use and enjoy, send them a gift card or a new customer discount they can pass on to someone else.

Even if it’s just a small amount, like $5 off, no one wants to waste a discount! Most people will be more than happy to pass it on to someone else, and that’s an easy referral for your business.

#3. Run a giveaway on social media

Not only is social media the perfect place to build awareness in your brand, get you in front of more people and connect with your community, but it’s also a great place to drive more referrals for your business.

One of the best ways to do this is by running a social media giveaway. People love free stuff, and if you’re giving away something your target market wants, they’ll be happy to enter.

To make the most of your social media giveaway, be sure to include an entry requirement that will help you generate referrals. For example, you could require entrants to share the giveaway on their own social media channels or refer a friend to enter.

This way, you’ll not only get more people interested in your business, but you’ll also get referrals from people who might not have found you otherwise.

Pro tip – Offer gift card for referring and being referred

One great giveaway you can use is that same $5 gift card approach. Offer your social media followers a $5 gift card they can use when they share a $5 gift card with a friend.

This way, not only are you getting a referral, but you’ll also generate more repeat business since you’re encouraging the person who referred your business to come back, too.

#4. Use an all-in-one small business marketing platform

There are a lot of ways you can generate more referrals for your small business, but if you do it all manually, it can take more time than may be possible for your schedule.

That’s where an all-in-one marketing platform, like Marketing 360®, comes in.

Marketing 360 has all of the tools you need to get more referrals for your business, including:

• Email marketing software – Send follow-up thank-you emails and promotional offers to your customers with the click of a button. Plus, monitor. the performance of your email campaign to ensure the best results.
• Social media tools – Schedule and publish social media content, and track your results, all in one place. The Marketing 360 Social app helps you save time and get social media management right for your business.
• CRM software – Small business CRM (customer relationship management) software is a must for getting referrals. Keep track of your customers, their contact information and purchase history, and segment them into lists for targeted marketing.
• Reputation management software – Online reviews are the modern-day word of mouth, and most people trust them just as much as they trust personal referrals. The Marketing 360 Reputation app helps you get more five-star reviews and build a strong reputation for your business.

Referrals can be a great way to grow your small business, but only if you have a plan in place to make it happen. With Marketing 360, you’ll have all of the tools you need to drive referrals for your business.

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Every small business needs referrals. They’re the most powerful form of marketing available to you, and the best part is that they don’t have to cost a lot — if anything.

With the right strategy, you can drive referrals and take advantage of word-of-mouth marketing for your business.

Learn more about how Marketing 360 can help you master referral marketing for your business, and see our plans and pricing.