Your Customers are a Great Source for New Leads

Many savvy business owners know a secret. This secret allows them to spend less on advertising, yet still enjoy increased profits. These business owners know that their customers are a great source of leads.

These leads come in the form of referrals and word of mouth advertising. In many cases, the business owner doesn’t even need to ask their customer for this favor. The customer just naturally tells other people about the business owner and their products and services.

Not only is this a free form of advertising, it is also extremely powerful. It is commonly known that a person needs to see an ad several times before they really notice it and act upon it. As you know, it can be very costly to invest in an ad on a regular basis, especially if the conversion rate is not very high.

However, if ten of your current customers each tell three people about your products or services, that is thirty new customers who are ready to buy your products or services. They trust the opinion of the person who referred them to you and probably won’t waste any time on getting other quotes. They will buy from you on the knowledge that their friends won’t steer them in the wrong direction.

Simply providing great products and services as well as friendly and efficient customer service are easy ways to keep your customers happy, and this makes them more likely to spread the word about your business.

Some business owners choose to implement a rewards program to help stimulate their customers into telling their friends and family about them. For example, a business owner may send each of their customers a coupon for 25% off one item, as well as a rebate slip for the same amount.

In order to use the rebate slip, the customer would need to give one of the coupons to a friend, and once the friend uses that coupon, the original customer could use their rebate slip.

In order to keep track of this, the coupons and rebates could be printed in different colors. This will make it easier to sort through them as they come in. On the back of both the rebate and coupon could be a place for the coupon user’s name. When a rebate slip comes in, the business owner can look through the stack of coupons and see if a new customer was actually referred by that original customer.

Even if a business owner doesn’t have the time to implement such a program, they can still ask their current customers to tell their friends and family about their products and services. When asked for this type of simple favor, many customers are more than willing to comply without receiving anything in return.