Businesses Overlooking Referrals as Marketing Source to Fall Behind, Expert Warns

Husam Jandal, internationally acclaimed business and marketing consultant, says owners of small and midsize companies would be wise to make one small change to their marketing strategies: ask for referrals. By making this simple pivot a priority, businesses get a boost at every stage of the customer journey. Details on creating a comprehensive referral strategy can be found in his complimentary marketing guide, “How to Grow Your Business Through Client Referrals.”
“Businesses beginning their digital marketing often want to jump into things like ads and content,” Jandal explains. “These are good ways to attract new clients, but they shouldn’t be addressed at the expense of creating a solid client referral strategy.”
Jandal draws on McKinsey research which concludes up to half of all purchasing decisions can be traced back to word-of-mouth marketing. Moreover, referred clients are 25 percent more profitable in their first year, have an 18 percent lower churn rate, and have a 16 percent higher lifetime value, according to Wharton data. The guide further notes that 87 percent of happy customers will refer new clients when asked. However, few businesses do and it can hold them back from growth that might otherwise be easily attained.
“When you’re doing business right and taking care of your customers, they want you to be successful and they’re happy to support you,” Jandal says. “But, they need a nudge in the right direction.”
The business and digital marketing consultant recommends creating a formal referral program that incentivizes clients for recommending the business to others. Discounts, gift cards, and other rewards can be offered to both the referral source and prospective new clients to generate more excitement about the program and increase engagement. Sharing helpful content on social media can also create organic word-of-mouth buzz. As current clients and advocates like and share it, it’s similar to a personal recommendation.
“You have to do your homework before launching, so you know how much each lead and new customer is really worth to your business, and then select your incentives with that in mind,” expands Jandal. “It’s also important to stick with it and continue running your campaigns to keep your offerings top-of-mind.”
Business owners interested in creating a referral strategy or developing a comprehensive digital marketing plan are encouraged to visit HusamJandal.com.
About Husam Jandal
Husam Jandal is an internationally renowned business and marketing consultant and public speaker with a background that includes teaching Google Partners, educating at a collegiate level, receiving multiple Web Marketing Association Awards, and earning rave reviews from businesses of all sizes. For more information on his speaking or consultancy services, visit HusamJandal.com.
Husam Jandal
pr@husamjandal.com
Source: Husam Jandal International Ltd.