Every week I’ll post an easy to use and “no budget” tip to improve business. My challenge is to get my message clear in 30 seconds reading time. Please let me know if I succeeded in this!
I am really wondering why business owners don’t ask to recommend their service or product.
Let’s face the facts:
– According to Forrester 80% of the business is based upon returning customers and recommendations;
– According to Forrester a returning customer spend 5-8x more than a new customer;
– According to Retail Dive* Millenialls like to get feedback from their friends what they take into consideration when shopping next time;
– And according to Retail Dive* Female teenagers still like shopping in a store instead of shopping on the internet.
If you take these 4 facts into consideration, why are business owners so passive?
The facts are clear and it’s unbelievable why business owners don’t ask for recommendations to get referrals!
Instead of discounts and promotions to attract new customers, business owners should invest in their existing customers and try to stimulate them to recommend. 80%… 5-8x more spending… How more attractive should these figures have to be before a business owners gets active?
When do you start asking for recommendations? I wish you many returning customers who like to recommend you!
PS Interested in referrals & social media? Take a look at http://www.tabluu.com A Singaporean startup who developed an online referral and social media engagement tool.
PPS More inspiration? Take a look at these video animations: http://www.tabluu.com/blog/retail-shop-marketing-video-animation/
*Based on survey from http://www.piperjaffray.com/