Consider adding a referral program to bring in new customers.

Due to its strong social proof, 'word-of-mouth' is the most powerful form of advertisement - yet it's the most neglected. Recommendations from friends and family remain the most valuable and trusted source for most consumers - even more so than the best of advertisements.

An excerpt from the McKinsey Quarterly report states:

"Marketers may spend millions of dollars on elaborately conceived advertising campaigns, yet often what really makes up a consumer's mind is not only simple but also free: a word-of-mouth recommendation from a trusted source. As consumers overwhelmed by product choices tune out the ever-growing barrage of traditional marketing, word of mouth cuts through the noise quickly and effectively.

Indeed, word of mouth is the primary factor behind 20 to 50 percent of all purchasing decisions. Its influence is greatest when consumers are buying a product for the first time or when products are relatively expensive, factors that tend to make people conduct more research, seek more opinions, and deliberate longer than they otherwise would."

Therefore, encourage customers to spread the word about your business by rewarding them with cash, prizes or points. Using this method, it's possible to keep your customer acquisition cost lower than in standard advertising - plus you only pay if a prospect becomes an actual customer.

After implementing the Ambassador referral platform to their website, virtual personal assistant provider, Zirtual now sees 50% of incoming clients coming from referrals.

Ambassador offers a free 14 day trial to gauge referrals and weigh your return-on-investment.

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