How To Get Clients To Refer New Business

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Word of mouth marketing is very powerful. Friends and colleagues of your customers will trust their peers more than they are likely to trust you.

Customers are also cost effective in developing new leads and business. The only problem you have is to work out how you can encourage your current clients to refer new business to you.

Here is our quick guide on some of the best tactics to generate word of mouth sales.

1. Offer Excellent Customer Service

One of the easiest ways to develop new leads from existing clients is to offer excellent customer service. There are numerous times when your customer service agents might come into contact with your clients, not all of them are related to problems. At each instance you need to deliver care that is above and beyond the call of duty.

This means you should always be looking to find ways to improve their experiences and deliver high value for their money. Once you’ve delivered on this, customers will feel appreciated and when something that can be solved by your services pops up in conversation, your brand will be mentioned as the potential solution.

2. Offer A Financial Reward For Every Successful Referral

A popular way to gain new clients from current customers is to offer a financial reward for everyone that successfully signs up to your business. This financial reward could be a voucher for a well known brand (i.e. Amazon), a discount on their next invoice or as hard cash.

The potential success for this is really good. Many people like to receive recognition for the hard work they do and signing up a new customer is taxing at times. Money is also a universally recognised award so there is little risk that it would be rejected by your current clients.

3. Offer A Free Gift

Whether it is a free pen, book, DVD or mug, a free gift for those who have referred new clients to you is another way to pique their interest. The more valuable the gift, the higher the reception will be, but generally speaking a free gift will generate a lot of interest in your referral marketing scheme.

You should make sure that the value of the free gift is under the customer lifetime value otherwise you will be making a loss. Apart from this, you could go crazy with your free gift. The more unique it is, the higher the perceived value.

4. Offer A Promotion

Another recommendation is to promote the referring client to a higher subscriber level, if applicable, for a certain period. This could also help you upgrade the current client by offering them more features, which they start to use and then want to keep, much like a free trial does.

This promotion would require more management, but it could be highly rewarding to you in the end.

5. Run A Competition

Everyone likes a competition because the feeling of success is such an enhancer on positive feelings. So by running a monthly competition where clients recruit others to you is an excellent idea. You can then combine the competition with a free money prize or gift by having the winner receive something for their efforts.

If you choose this, be careful with the rules. Ensure there isn’t the opportunity to take advantage of your competition.


Word of mouth marketing is one of the most effective ways to generate new clients. What you need to do is to think of a way to thank your current customers for their efforts in promoting and selling your business to others.

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