Here are 5 key reasons why growing by word of mouth is one of the smartest ways you can go…

1. Word of mouth is one of the cheapest way to get new clients. You can get referrals without spending any money! Get the mindset right and you will suddenly see all the opportunities for referrals just lying around in your business and your current buyers. It is worth planning for.

Are your word of mouth referrals a lucky accident, or a deliberate, planned result?

2. Studies have shown that referred clients come back more often and spend more than clients brought in by any other marketing method. A client coming from word of mouth can be worth much more so don’t just measure the quantity. Check the life-time value of your referred clients and compare that to any other method you use. Almost always you will find a significant difference.

You are measuring where your clients come from, and how much they are worth to you, aren’t you?

3. Word of mouth clients tend to complain less, pay on time more often, and are generally more enjoyable to work with, when compared to clients from any other method. This is primarily because your best clients usually refer the best people to you. More often than not, clients refer you people who are very much like them.

You are very clear on who your ideal client is, aren’t you?

4. A systematic word of mouth strategy can double the size of your business in less than a year. After all, if every one of your clients refer, on average, just one person each year, then you’ll double your client base every year! You can create referral opportunities, and also arrange to be right there in a person’s mind when someone they know has need of you.

Do you follow-up, are you memorable, and have you made it drop-dead easy for people to give you a referral?

Finally, and best of all…

5. A client who comes by referral is far more likely to send you more referrals. There is a virtuous cycle. A referred client already understands you accept referrals, they have experienced how you will treat someone they refer, and they are already proven to talk to others about what they needed when they came to you.

How are you leveraging that first referral into a growing chain of additional referrals?

With all theses benefits of word of mouth, can you see why creating a system to get the maximum number of high-quality referrals is going to really benefit your business?

-Martin Russell

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