Referrals Rule

When you hear the words “so-and-so referred me/or suggested I see you”, it’s almost like money in the bank!

You’ve probably heard that it can cost five to ten times as much to attract a new customer as it costs to maintain and keep an existing customer.  And, that 80% of your business comes from 20% of your customers.  While finding new customers is important, finding more new customers and keeping them is the true secret to success!

Bain & Company and Harvard Business School reports that 80% of businesses believe they deliver a superior customer experience to capture repeat and referral business, while only 8% of their customers agree that these companies provide superior service.  They also suggest that a 5 percent increase in customer retention can lead to an increase in profits of between 25 and 95 percent.  Both sets of numbers should grab your attention!

While your customers are bombarded with messages from your competition, it makes sense to craft your advertising to attract new customers, but also keep you front and center with current customers.

Many businesses use internet tools like email or social media to pursue customer loyalty and use intrusive broadcast media to attract new customers. While that strategy is certainly valid, they often under-estimate what intrusive media, like radio, can do to serve as a reminder to their current customer base.

What do you do, or can you do, to provide “over the top” customer service?  And, do you tell people what you do?  Customers expect good service, but it’s when you go over and above that they start to tell their family and friends.

In business, customer perceptions become their realities. If 92% of customers don’t perceive you deliver superior service, they are vulnerable to the aggressive appeals in your competitors’ advertising.

There is a reason that successful businesses like McDonald’s, Home Depot, and GEICO continue to invest more in broadcast advertising…. they understand that to GROW their business they not only need to keep their current clients, but they also need new customers.  New customers come from one of three ways: referrals, advertising, or luck!

Want to get luckier by getting more repeat and referral business?  Click here to read 12 Ways to Generate More Repeat and Referral Business.