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Home Blog Updates Small Businesses – Are You Asking for Referrals?

Small businesses are always on the hunt for leads and enquiries from potential customers, whatever the shiniest, newest marketing technique is – many of us jump on board, focussing our time, attention and marketing budgets on these new tools to find these new customers, instead of actually drilling down and focussing on what really does offer a positive ROI.

While many businesses focus on these new techniques, ‘bread and butter’ marketing and sales methods such as direct mail and telephone sales fall by the way side.

One example of this is referral marketing.

Put basically, it’s simply asking your previous and current customers, those that know, love and continue to work or buy from you – if they know of anyone else, one of their contacts, who would be interested in buying from you.

It’s an often overlooked technique, but as the old saying goes…

“If you don’t ask, you don’t get.”

Referral Marketing Statistics

Here’s some interesting statistics which back this up:

  • 92% of respondents trusted referrals from friends they knew – Nielsen
  • 77% of consumers are more likely to buy a new product when learning about it from friends or family – Nielsen
  • 83% of consumers are willing to refer after a positive experience, yet only 29% actually do – Texas Tech
  • People are 4x more likely to buy when recommended by a friend – Nielsen
  • The lifetime value of a new referral customer is 16% higher – Wharton School of Business

And finally, according to Gigaom Research – only 39 percent of marketers and small businesses actually use referral marketing regularly, but 43 percent of those who do use it acquire more than 35 percent of their new customers with it.

When you’re looking for your next lot of leads, remember – just ask!

Shane Atkins
Hello! I want to show you how to get more traffic from blogging, and social media by helping you grow your subscribers and social influence by using a mix of best practices with trail and error. I'm going to be talking about blogging and social media a lot as I love them both 🙂 Want to know more? Check out my about page.
Shane Atkins

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