Repeat business is the name of the game when working in sales. This is true when starting a brick and mortar or home based business. When building a business from scratch, business owners tend to overlook the power of referral bonuses. From the beginning of any start up business, the referral, word of mouth or otherwise, has been the only way to gain more clients and increase business sales. As it turns out, 45% of businesses and their products or services are chosen because the customer was given a referral from a family member or friend. The word or mouth method of gaining more clients will never go out of style. In fact, the word of mouth, good or bad, just seems to come naturally to everyone.
Relying on word of mouth though can be hit or miss. To add to your business growth, a customer referral bonus will, more likely or not, always bring customers back. Many business owners make referral cards to give their customers and their customer’s friends. When the referral card is filled up, they get a reward. When making referral cards though, after 5 purchases, is the best way to retain your customer base and give then something for their business. Business concepts such as this have been around for decades and are only now being implemented more often.
Other methods of advertising would be sending out mailers. Although mailers are not cost effective, even if you reach 70-80 people, this is an increase in your business sales. To attract this amount of potential clients, you would have to mail out 1,200 fliers or postcards. So, if you gain 70-80 new clients, those clients will now be part of your referral bonus program, so to speak. Once again, this will go back to word of mouth.
As your client base grows, create a mailing list. At the beginning of every month, on those mailers, talk about new products in your store or lower priced products. Keep a list of what products your customers like the most and lower those products prices too. On those mailers, remind customers or the referral bonus they will receive for spreading the word about your company. It is a good thing to always have products in your store that customers will actually want to purchase too. Products which can be used everyday, at fair prices, will keep your customers coming back.
If you are a computer and Internet savvy business owner, create a business website or blog page. Everyday, write a small article on your company, why you started it and what products you currently sell. Then, send your website or blog link out over the Internet through social networking websites like Twitter, Digg, Facebook and other popular social networking websites. Also, create an e-newsletter, remind customers of the referral bonus, to send to your costumers email inbox. If your customers prefer the email newsletter, stop sending out mailers. With each new article, talk about one product in particular and have that product photo in that article. Customers are visual as well as hands on. When they see your products, they are more inclined to make a purchase, tell their friends and sign up for any online or offline referral bonus program.
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