How to Get More Word of Mouth Referrals

There is a strong correlation between customer loyalty and getting more word of mouth referrals.1

So what are you doing to retain your existing customers so you can increase your business’ profitability? Here are some quick facts on Customer Retention.

  • Getting new customers is 5 times more expensive than retaining existing customers.
  • Repeat customers are less expensive to service because you’ve already created files and set up their account.
  • Long term customers aren’t easily swayed by a competitor and are less sensitive to pricing fluctuations.
  • A 2% increase in customer retention has the same effect as cutting costs by 10%.
  • A 5% decrease in customer defection can increase profits anywhere from 25% to 125%, depending on the industry.

Call me today at 817-521-8570 to ask about our Customer Reactivation campaign that can help you identify past customers to reactivate and/or retain and convert them back into customers.

References

1 Leading on the Edge of Chaos”, Emmett C. Murphy and Mark A. Murphy

Your Online Reputation Is Your BRAND

Word-of-mouth is a great marketing channel; however, it’s changed a little in the past few years.   We did a survey of 300+ consumers and asked them “After being referred a business, what do you do next?”

An overwhelming majority said they go online to find information on the company.  Then we asked them, “When looking online, what do you do next?”

Buyers look online for reviews and ratings

 

 

 

 

 

 

 

More than half said they look for online reviews & ratings.

A lot of consumers turn to online reviews to determine the quality of the referral.  This is great news for local business owners who have a great reputation in the community.  All you have to do now is convert that positive feedback into online reviews on Google or Facebook, and then market your 5-Star Reputation on your website and all over social media sites.

In fact, according to another recent study (BrightLocal), your customers will read up to 10 online reviews before feeling they can trust you.   It’s never been more important to collect and market your reputation online as more and more consumers think of your online reputation as your BRAND.    For more info, visit our Customer Reviews page here.