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The importance of referrals to grow your business

Posted by HOP Group on May 23, 2016 10:00:00 AM

Referrals play a huge part when small businesses are growing. It is the most cost effective way of getting more awareness of your brand and to maintain a constant growth of your business. It is important to treat referrals extremely well; if one of your customers likes your service or product enough to refer it to other people, then you are doing a great job. This potential new customer is expecting a lot from you because of the great experience he or she heard customers have. So make sure you give them the best possible service to ensure the referral keeps a good image of your business.


You can encourage referrals in various ways; a typical strategy is offering discounts to customers who bring a new client in the business. It is not the only method but can be a great channel to increase your brand’s visibility in a very effective way.

When starting a business, be aware that your first customers will be your own employees. They will be the first few people who can refer your product to other people. If your employees believe in their company they will sincerely refer your business to people who are interested.

This is the most natural way of obtaining top quality leads and it’s a strategy a company may use to enhance their awareness. It is important to recognize those referrals and treat them in a more specialized way. Let them know you can deliver them what they are looking for and offer the best possible customer service. Eventually referrals can help you span through a significant segment of your local market.

Another way to encourage referrals can be through a special referral program. You might have friends or relatives that have not necessarily been your customers but they know you offer a high quality product or service. Try motivating those friends or relatives with a special bonus or commission if they refer a new customer to your business, you will soon realize the importance of referrals to grow your business.

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Topics: HOP Group, Digital marketing for small businesses, Small Businesses

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