Word of mouth or referral marketing is a key tool for building your company's customer base. Unfortunately, many people don't understand why this type of marketing is so important. Here are 3 reasons your company needs word of mouth or referral marketing and why you should be prioritizing it in your business.
Reduce Your Sales Cycle
Referral marketing will cut your sales cycle significantly. For every customer sent to you by word of mouth or referral marketing, your sales team will save time making a cold call to that individual. When you prioritize referral marketing, you may reduce the efforts of direct sales calls that often reach disinterested people. Referrals lead to a perpetual sales cycle as more satisfied customers spread the word without any necessary involvement from you or your sales staff.
Increase Sales Revenue
When your business grows based on referral marketing, you won't have to offer as many new-customer incentives. Referral customers are often more willing to pay full price for your services than random leads might be. When your customers come to you already understanding the value of your product or service, they won’t look for or need a discount incentive to work with you. This leads to increased sales revenue and the potential for higher profits for your business.
Close Sales More Easily
Customers referred to your business by someone happy with your services are more likely to close a sale than random, non-referred or cold-called leads. The referral builds a level of confidence in your business. Since consumers are more likely to buy from a company that they have reason to trust, this is a great sales and marketing tool.
These are only a few of the benefits of referral marketing for your company. For more information about what referral marketing can do for your business, contact us today.