The Importance Of Referrals & Reviews For Small Business

The Importance Of Referrals & Reviews For Small Business.

Do you choose when looking for a new dentist, the best store to find locally-crafted products paired with excellent customer service, or a restaurant with THE best pizza in town? You can dive right in, cross your fingers, and hope you make a good choice. Or you could research and check online reviews to get some feedback. But one of the best ways to get an accurate take on whether any business might work for you is to get a recommendation from a friend or a personal referral. This social proof helps to share the love of what you do with others!

What Is The Difference Between Customers & Advocates?

Our friends are a trusted source. They are our friends for that reason – they try to offer good, sound advice and wish the best for us. Who better to turn to when finding the best service, product, or brand to trust?

Hearing about a business a friend supports and recommends makes us more likely to consider it ourselves. People believe what others say about you more than what you say about your small business. Word-of-mouth advertising is priceless – a good word or review can sometimes make or break a small business. People are 90% more likely to trust and buy from a brand recommended by a friend.

As small business owners, we want customers who see us as reliable and worthy of their hard-earned dollars. Having brand advocates or vocal customers willing to spread the word about our business is invaluable.

Referral Advertising Shows Results

When you have loyal customers willing to spread the good word about you, it only makes sense to show them some appreciation for helping to promote your business. Whether you choose a simple thank you email for a new customer referral or have a more established program offering incentives, and rewards for referring new business, offering your customers the opportunity to support your business by referring your services or products to a friend has a few benefits:

• It reinforces your business advocate’s choice to continue to be a loyal customer and your value to them as a customer.
• If you couple their referral with an incentive, you further solidify your customer-provider relationship. We all like to feel appreciated.
• You have an excellent possibility of attaining new customers. When referred by a friend, people are four times more likely to purchase and have a 37% higher retention rate.

So if you still need to tap into this excellent resource for your brand, consider establishing a Referral Program. It’s a great way to attract new customers by breaking through all of the advertising noise in a genuine and impactful way. If you’d like to establish a referral program for our small business but need help figuring out where to start, contact our BC & Associates team at i[email protected]. We can help you create a plan to attract new customers while rewarding your current loyal followers.

Sources: 

• https://www.forbes.com/sites/danielnewman/2015/06/23/love-it-or-hate-it-influencer-marketing-works/?sh=39d536bc150bb
• https://www.extole.com/blog/15-referral-marketing-statistics-you-need-to-know/