How To Build A Brand | Referral Strategy – MORE Referrals | Small Business Marketing | Subscribe To This Channel To Receive Our Regular Brand Strategy, Branding, Marketing & Business Growth Tips 🙂

Hello and welcome to your Branding Advice Centre at How to Build a Brand. Today’s advice is about referrals and how important they are to your business and how you can get more.

When we think about referrals, we really are referring to the big term, the “word of mouth,” that helps business get more business through the word of mouth of people who have experienced or heard of the experience of your product or service.

Let’s look at referrals and how valuable they are because one thing you really want to do is work out what is your CLV, your Client or Customer Lifetime Value, because then you could find out how much a referral is really worth to you. In truth, if you get this right, it doesn’t necessarily have to cost you anything or very little at all just to get people giving their word of mouth out to a wider audience than they are right now.

If you were to think about every single customer that you have or in your mind, if you’re a new business, the amount of customers that you want to have in a given period of time, think about if each one of those just found you one more customer, just one. Imagine what that would do to your business. Imagine then that if those people again found just one customer each because they were talking about your business and actually proactively referring you to somebody else for what you provide. Now think of the numbers. As you can imagine, basically you get this right, it can go viral. That’s how you can do this in person with word of mouth, but of course, word of mouth doesn’t always have to be just in person, that’s the great thing about this. It can be through social media where people start talking about what you’ve done for them, with such passion and such belief that of course the people that are listening to it are going to think, “My god, I’ve got to check this out!” That’s what’s amazing about word of mouth. So think about the CLV, the Customer or Client Lifetime Value to your business and you can work out how valuable just one referral from each one of those is.

Now, how can you possibly incentivize people to give referrals, to spread that word of mouth, that little bit further than they would otherwise normally do? Because when we think about it, if you’ve been to a good restaurant or you’ve watched a good film, when it comes up in conversation, you really do avidly express just how fantastic that was and why they should go at the next opportunity, right? It’s like you’re selling the restaurant for the restaurant, you’re selling the film for the director and the producer. It’s amazing what affect that can have and you can have your customers doing that, too, if you incentivize them. That might mean that thinking about a reward scheme that you might have for referrals.

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