Attracting & Retaining Clients
June 3, 2025
Operating a small business sometimes means that you don’t have the resources to do everything. For example, you want to grow your business. But you don’t want to spend all your spare cash on marketing. You could save money by doing personal outreach. But then, you’d have less time to serve the new customers you hope to gain. If only there were a way to gain new clients that didn’t take a lot of time or money.
You know what’s coming next, right? There is a way!
Referrals.
Referrals are a type of word-of-mouth (WOM) marketing. A referral can be as simple as one friend telling another,
“Hey, I had an awesome time at this new park last week.”
A request from a friend can also prompt a referral,
“I need a new hairdresser. Do you know anyone good?”
These types of referrals are called “organic” because they occur naturally. You don’t have to rely on organic referrals alone to grow your business, though. Give nature a little boost by encouraging your clients to refer their friends and family.
Here’s how to do it.
Of course, offering rewards means that your referrals aren’t completely free like organic ones are. But, you’ll only have to pay if your program is a success.
Also, send a personal message saying thank you to your referring clients. This lets them know that you appreciate their support and will encourage them to continue making referrals.
Finally, make it easy for your clients to tell others about your business. You can help your clients spread the news by distributing printed referral cards, sending a promotional email for them to share, or giving them a personal promotion code that they can share with friends.
Once you begin offering incentives, make sure you track each referrer and referee so that everyone gets their rewards. This record will also help you calculate just how much of your business is attributable to referrals. A high referral rate signals that your customers are happy and loyal.
Gaining referrals is just one reason building a base of loyal customers is good for your business. You can find more strategies for earning customer loyalty in our free ebook, The Loyal Customer Generator.
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