 | Byron Stokes is the owner of Stokes Consulting, a Pittsburg based employment consulting company. Stokes Consulting assists individuals with resumes, cover letters, and job acquisition. Also, Stokes Consulting provides hiring services to small and medium size businesses. For more information about Stokes Consulting please call 620-778-5447 or visit www.stokesconsulting.biz. |
Business
2011-11-30 15:30:59
Why are referrals so important- The power of referrals - series - part 1
Q: Can you tell me about the importance of referrals in business? I have always just rather assumed that the referrals would come naturally. I am wondering how much effort I should put into this, or should I use my resources to beef up my marketing?
A: I talk to many business owners in exactly your position. The question is, "Is it worth my time to gain referrals?" and the answer is—absolutely.
One of the biggest contributing factors to successful businesses is an active referral campaign. Many independent businesses, such as beauty professionals, financial services professionals, interior designers, landscape designers, caterers, or personal trainers – grow their business nearly exclusively through referrals.
Why are referrals your best resource for consistent business and loyal customers? There are several great reasons. Let us consider the most prominent:
• A referral is typically in your geography and sphere of influence and more likely to use your services
• Your reputation precedes you since they come from happy customer or clients
• You typically have a good idea that they are a good potential customer because they are often similar the current customers who referred them.
• They cost very little to produce and deliver a high Return On Investment (ROI)
Without leveraging referrals, your business is relying solely on the power of your marketing. Many business owners believe that their good reputation, along with their marketing, is enough. In some cases, it may be. However, for most businesses it is a shortsighted strategy. Whatever your goods or services, you as the business owner, are always the best asset. Simply put, people respond to people and remember personal relationships much longer than products and services. My advice, don't underestimate the power of referrals.
