Power Of Referrals Gets Results

Word-of-mouth referrals always have been part of the B2B and B2C scenes because it just makes good sense for all concerned. But such links are even more vital for business and customers in today's tough economic climate.

For a business getting a referral, it offers the opportunity for continued income and success by attracting new customers and gaining repeat work. For customers, it provides a measure of assurance that your hard-earned money won't be wasted on inferior labor, services or products.

A recent conversation I had with a local carpenter underscored the importance of word-of-mouth referrals. Once our chat got around to doing business in this recession, the worst economic downturn in the United States since the Great Depression, he told me something I hadn't expected.

The carpenter said he was busier now than before the recession hit. In fact, his schedule was booked solid.

It surprised me because other skilled tradesmen told me they were struggling to find business. Some said their customers either had been laid off or they were cutting back on home maintenance and improvement projects.

The carpenter said all his business this past year came from word of mouth, not advertising of any kind (except for a business card). He said he did a massive flier mailing, got no response, and stopped using that approach once it became clear referrals were doing the job for him.

The carpenter's story is something to keep in mind, regardless of your type of business. You've got to cultivate your customers for repeat and future work. If they like you and the quality of what you do, ask them for referrals and hand them plenty of business cards.

You've got nothing to lose but everything to gain!