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The Art of Startup
Marketing
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Article 5: Pump Up Referrals
About the lowest cost marketing you can employ
is to have others market for you.
Unless you’re an utter failure, you’ll
eventually get a customer. That customer, if
pleased, can become your best marketing tool, at
no additional cost.
Satisfied customers unselfishly spread the
goodwill you create with them. But don’t wait
for them to think of it. Although
customer-initiated word-of-mouth marketing is
bound to occur among pleased clientele, it costs
little for you to prod them along.
So, as soon as you get happy customers, ask them
to refer other potential customers to your
business. Offer them incentives, such as a small
fee or gratuity for every sale they send you. If
they’re uncomfortable hawking your wares, ask if
you may use them as references instead. It’s
more passive, but also effective. Again, sweeten
the experience by offering an appropriate reward
for sales they help close.
You’ll find that most happy customers are happy
to pay you back in this small way, particularly
if they stand to gain from doing so.
The rub is that you can’t rely on even your
happiest customers to act on their own. Be sure
to ask them to do this for you, as a favor. You
will find most are more than willing.
Tip: A twist on this practice is to make
referrals yourself. If you have customers
needing something you can’t provide, but you
know of a quality provider, don’t miss this
opportunity. Let customers know where they can
get what they seek if you can’t provide it. By
fulfilling their needs, you’ve provided a
value-added benefit at no cost to you. Parlay
this by getting other merchants to reciprocate,
sending you referrals just as you send them.
Mutually beneficial back-scratching is
networking at its best.
Caveat: Don’t send your customers to lousy
merchants. They will associate the bad
experience with your advice.
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