Episode 15 – Marketing Strategies for Client Retention – Part 4 – Referral Marketing

June 7th, 2021

This is part 4 of a 4-part series on Marketing Strategies for Customer Retention. 

Harvard Business Review Study:

• It’s 5-25x more expensive to acquire a new customer than to keep an existing one. 
• Increasing Customer retention rates by 5% increase profits by 25% to 95% 

Most Effective Digital Marketing Tactics: for Customer Retention: 

From GigaOM Research, found at Marketing Charts.com

Most Effective Digital Marketing Tactics for Customer Retention:

https://www.marketingcharts.com/digital-44110/attachment/gigaom-most-effective-digital-tactics-customer-retention-july2014

Part 1- Email Marketing -56% 

Part 2- Content Marketing – 37% 

Part 3- Social Media Marketing- 32%

Part 4- Referral Marketing- 26%

REFERRAL MARKETING

Asking your client for a referral 

two-fold benefits: 

1. New business from existing clients
2. Reinforces the relationship with your existing client. 

9 Practical Tips for implementing a referral marketing plan: 

• Ask your ideal clients for referrals because they are more likely to know more people like themselves. 

• Know who your happiest, most engaged, clients are and ask them

1. 1. 1. They’ve complimented you on the service they have received
      2. Your CRM is tracking their interactions/ engagement

• Make it easy to get the referral 

1. 1. 1. Offer a simple process so that it’s not too much work for your clients to refer you
      2. Examples: Referral Marketing Materials Such as
         1.  business cards, 
         2. flyers, 
         3. emails, 
         4. Button on your website. 
         5. Button in your email signature: “Forward My Contact Information” 

• Get your contact information on their phones.

1. 1. 1. If you clients don’t have your contact information, don’t expect any new referrals from them you. Make sure that your email address and phone number are everywhere. Begin with your invoices, email signature and social channels, then make sure that you get that information on their phones. For instance, if you’re at a conference, ask for their number and send them a text so that you can program each other’s numbers into your phones.

• Timing

1. 1. 1. Look for opportunities where a client is particularly pleased with the work you’ve done. 
      2. When they are most excited about your product or service.

• Consider offering a deal. 

1. 1. 1. Best kinds of deals are where the person being referred gets a deal, and your existing customer also gets a kick back of some kind.

• Recognize and thank your referral sources.

1. 1. 1. Whether it is a phone call, email, handwritten note or holiday card, encourages clients to refer others by showing you appreciate the chance to earn and keep their business. When they send a new client your way, thank them with a handwritten letter whenever possible.

• Ask clients to like your Facebook page.

1. 1. 1. Keep in mind that half of all Facebook users have more than 200 friends. That’s a lot of potential clients at your fingertips!
      2. Encourage your clients to like your Facebook page by developing share-worthy content, such as infographics. 

• Make clients your first priority.

If you have a new product on-the-way, like an eBook or app, give your existing clients a chance to preview or beta test it and provide feedback to make improvements. If you have an upcoming sale, give them early access. If you’re hosting an event, give them a discounted entry price. In other words, make your clients feel like VIPs and then return the favor.

INSPIRATION – “What’s one thing that inspired you this week?”

“Opportunity is missed by most people because it is dressed in overalls and looks like work.” – Thomas Edison  

RESOURCES MENTIONED DURING THE PODCAST

https://www.entrepreneur.com/article/292645

Most Effective Digital Marketing Tactics for Customer Retention:

https://www.marketingcharts.com/digital-44110/attachment/gigaom-most-effective-digital-tactics-customer-retention-july2014

HBR

https://hbr.org/2014/10/the-value-of-keeping-the-right-customers