Small Business Marketing

Small Business Marketing on a Budget – Easy Technique for Growing Your Customer Base

Hopefully, you’re aware of the value of giving something away for free in order to grow your customer base. When using this tactic, it’s good to know the lifetime value of your clients so you can determine how much, monetarily, you can afford to give away for free.

More than likely, that the lifetime value would be higher if you knew each customer would refer other new customers to you. And that brings us right to our simple technique for increasing your customer base and growing your business:

Create A Surefire Referral Program

A solid referral program is, without a doubt, the least expensive way of generating new customers.

Prospects who are referred to you are “easier” to convert into customers since they are, in effect, pre-sold. Recommendations from friends are always more trust-worthy and credible than any advertising you could ever do.

Additionally, the customers who do the referring become more loyal to your business. They’ve identified with you and staked their own reputation on your. It’s very unlikely that their psyches and their egos will let them back down from this public statement.

Don’t rely on word of mouth to generate your referrals. While word of mouth does work, it’s slow and hard to control; it will never bring in enough referrals quickly. You must have a systematic plan in place and you must follow it on a regular basis.

One of the easiest ways to get referrals – and the one most mall business owners are the most afraid of using – is to just ask. I think many of us are afraid to ask for referrals because of fear of rejection. We’re afraid our customer will think we’re pushy and that they’ll say “no”. But let me share a little secret with you. Most of our customers want to give referrals. It makes them feel special, like “they belong”, like they’re a personal part of your business. And it allows them to be a hero to their friends by sharing an “insider’s tip” or a “secret resource”.

OK, we know we should all be asking for referrals, but there’s a little more to it than that. You can’t just ask, “Do you know anyone who could use my service?” You’ll get lots of blank stares and you’ll hear lots of “Not right now, but I’ll think about it.” You’ve probably been down that road before and you took that response as a rejection. Which is why you’re now afraid to ask for referrals.

But the blank stare wasn’t because you asked, it was how you asked. Your question was too vague. “Do you know anyone…” You’re basically asking your customer to think of everyone she knows. That’s overwhelming and confusing. You need to help her focus on specific people she knows.

We’ll use the quick lube center again as an example. Try this: “Kathy, do you have any neighbors who drive hybrid cars like you do who might be interested in using our service?” Do you see how that helped her focus? You narrowed down a demographic (where they live) and a psychographic (what type of car they drive). If Kathy still says “no” you can try one more appeal: “Well, how about co-workers?”

Now you’ve got Kathy focused on three things: neighbors, co-workers, and hybrid cars. It should come as no surprise when Kathy says, “A guy at my church drives a hybrid car.” or “My co-worker Jim was complaining about the condition of his wiper blades the other day. I’ll tell him to come here and get some new ones.”

Great! You’ve got Kathy focused on specifics and she even mentioned particular people she could refer. Now you might want to take the extra step to get those prospects into the door. You can hand Kathy some coupons to give to her referrals, or, if you’re bold enough, you can even ask for their phone numbers.

If you want to use the coupon approach, here’s an amazing tips that works on so many levels: on the back of the coupon, quickly jot down “special friend of Kathy Smith”. The persuasive cleverness behind this is brilliant:

1. You made Kathy feel special by implying that her friends deserve exclusive treatment.

2. You’ve allowed Kathy to become a hero to her friends and acquaintances.

3. Kathy is more likely to encourage her referrals to come in for service since there is now a tracking method in place. (Remember the law of reciprocity.)

4. The referred prospect is more likely to come in since he now believes he’ll get “special service”.

Want a more covert way of asking for referrals? This may not be as effective as asking outright, but it’s a good way to “get your feet wet” if you’re too afraid to ask. Remember that free give-away we talked about earlier? Now would be a great time to pull it out. As Kathy is paying her bill, simply say, “Kathy, I have this new report ‘Which Funny Noises That You Car Makes Do You Really Need To Pay Attention To?’ Here’s one for you, and here’s one to share with a friend.” When Kathy gives the report to a friend, it’s sure to spark an endorsement of your services.

The key to generating tons of referrals on a consistent basis is to have a system in place that you use each and every time. If you decide to ask for referrals, ask every single customer. If you decide to use a freebie, give it to everyone, every time. It’s also very important to reward the customers who send you referrals. (Remember writing the name on the back of the coupon? That’s a very easy tracking mechanism. Why not send Kathy a free oil change for every three customers she refers?)

Karen Scharf

View all articles by Karen Scharf

Small Business Marketing Strategies And Small Business Marketing Tips | 888-890-8920

10 Secrets Of Mobile Marketing Every Small Business Owner Should Know To Reach More Customers $19.95 Mobile Marketing can easily bring you customers and traffic that you never even dreamed of.Including:- What you need to know about mobile marketing that your competitors don’t know…- Coupons, surveys, contests, textimonials.. Now, you’re talking…- Grab customers and drive traffic with click to call, click to video, click to cash…- Connecting with your market will bring you new business…- M…

Entrepreneurs Always Drive On Empty – Chapter 5 $9.98 Chapter 5 – For many years I have looked down at my petrol gauge wondering how long it would be before I next had to refill. Not because I didn’t have the money to fill the tank but because I focused more on making my money work for me rather than stagnating in my tank.Have you ever wondered why some small businesses seem to propel from nothing to something faster than others. Why some business ow…

Entrepreneurs Always Drive On Empty – Chapter 1 $9.98 The Ultimate Business Bible – For many years I have looked down at my petrol gauge wondering how long it would be before I next had to refill. Not because I didn’t have the money to fill the tank but because I focused more on making my money work for me rather than stagnating in my tank.Have you ever wondered why some small businesses seem to propel from nothing to something faster than others. Wh…

Marketing: Winning Customers with a Workable Plan (Volume 1 in Small Business Video Library) A video detailing the steps to create a successful marketing plan….

Marketing Your Small Business – Learn How You Can Run Your Small Business Even Better $38.95 Take your marketing to a new level and gain an advantage over the competition. This tape shows you how to successfully market your business using easy, inexpensive computer technology. The America at Work Video Series shows you how actual small businesses succeed in today’s competitive environment. You’ll see real-life examples of how five small businesses today are getting more done and gaining m…

Something Ventured an Introduction to Small Business Management : 26 Part Television Course VHS This 26-part course provides the tools learners and business people alike need to compete effectively in the world of small business. A combination of case studies, business profiles, and wrap-up discussion segments explore and develop key small business themes as part of a comprehensive approach to small business management….

Neiko 61013 550 Cubic Inch Fit Anywhere Digital Electronic Safe Box for Home, Office, Boat/RV, Gray Color $39.00 Keep your valuables out of reach with the Digital Electronic Safe Box. It keeps cash, jewelry, guns, documents and other valuables safe. It has heavy duty steel construction and allows key or keyless entry. Electronic keypad uses up to 8 digit secret PIN code….

Kenneth Cole New York Women’s KC4745 Petite Chic Classic Square Case Watch $57.50 Gold tone stainless steel case includes a polished link bracelet. The convenient push button deployment clasp brings the band together. Classic white dial has complimentary gold tone hands and hour markers. The precise Quartz movement is protected by a scratch resistant mineral crystal. Water resistant….

Pelican MityLIte 2340 Flashlight $15.71 This 6.25-inch flashlight has a xenon lamp module that produces a tight white beam to penetrate darkness, smoke, and fog. A tail button-switch turns on the flashlight for constant light or momentary blink. Its tough Xenoy body resists chemicals, corrosion, and extreme temperatures. A utility clip secures the flashlight in a pocket or on a belt. Powered by two AA alkaline batteries (included), the …

All the Right Moves $3.08 Most films about high school football players usually fall into one of two categories: glossy jock romance or locker-room sex farce. This one defies the odds and scores both as decent character study and decidedly unsentimental sports melodrama. It’s not only a helluva coming-of-age yarn, but also, like Paul Newman’s Slapshot, it’s a bracing look at the hopes and dreams of blue-collar survivors. T…

HP LaserJet CP4025DN Laser Printer – Color – Plain Paper Print – Desktop $1426.95 This easy-to-use color laser printer offers powerful, professional quality color and black only printing ideal for sharing with small to medium workgroups. Get a great value for the price this printer is packed with performance features. Produce superb color quality and crisp text for your business documents and marketing materials. Meet the needs of your busy printing environment with built in networking, generous on board memory, and an intuitive control panel with auto navigational help.Package Contents:LaserJet Enterprise CP4025DN Printer Power Cable 100-sheet Multipurpose Tray 500-sheet Input Tray HP Jetdirect Gigabit Ethernet Embedded Print Server 1 x Black Toner Cartridge 1 x Cayn Toner Cartridge 1 x Magenta Toner Cartridge 1 x Yellow Toner Cartridge Hardware and Software Installation Guide CD-ROM with Software Drivers and Documentation

HP LaserJet CP4025DN Laser Printer – Color – Plain Paper Print – Desktop $1401.95 This easy-to-use color laser printer offers powerful, professional quality color and black only printing ideal for sharing with small to medium workgroups. Get a great value for the price this printer is packed with performance features. Produce superb color quality and crisp text for your business documents and marketing materials. Meet the needs of your busy printing environment with built in networking, generous on board memory, and an intuitive control panel with auto navigational help.

HP LaserJet CP4025N Laser Printer – Color – Plain Paper Print – Desktop $1094.95 This easy-to-use color laser printer offers powerful, professional quality color and black only printing ideal for sharing with small to medium workgroups. Get a great value for the price this printer is packed with performance features. Produce superb color quality and crisp text for your business documents and marketing materials. Meet the needs of your busy printing environment with built in networking, generous on board memory, and an intuitive control panel with auto navigational help.

Marketing Small Business Advantage Premium Suite, Traditional Disc $59.99 Gives your business an edge Helps you run your business better. Whether you are starting a business or expanding your company, this suite has everything you need to build, manage and run your business successfully! Combines advanced marketing and small business tools. Includes over 30 tools to organize and run a small business. Includes a full version of “Time & Bill Professional.”

Marketing and Small Business Advantage $59.99 Individual Software Marketing and Small Business Advantage Premium Suite Software – For Windows

Marketing and Small Business Advantage $75.59 Individual Software Marketing and Small Business Advantage Premium Suite Software – For Windows

MyMailList(TM) Postage Saver, Traditional Disc $49.99 Ensures that your business is delivering its message For use with both postal mail and email. Great for the home office or small business. For use with both postal mail and email. Pre-sorts all of your bulk mail, saving you up to 80% on postage. Includes tools to manage your direct mail and email marketing campaigns. Features over 200 matching mail designs, 90 email templates and a mail design wizard.

Sage ACT! PRO 2011 $229.99 Provides an organized view of the people you do business with Designed specifically for small businesses and sales teams. Even consultants, realtors, financial advisors, manufacturers’ reps, recruiters, and fundraising managers can benefit! This software helps you engage in meaningful conversations with your customers so you can build long-lasting, profitable relationships. You’ll always be prepared with recent emails, meeting notes, task reminders, and social media profiles with all the details in one convenient place. Works like your personal sales and marketing assistant to help you get the right leads, send striking marketing campaigns, and track your overall performance. Simple to customize by changing design views, adding fields and tabs, editing drop-downs, and personalizing templates.