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A small business constantly struggles with building up their customer base. Gathering new clients is very difficult to do no matter what kinds of methods are employed. Marketing methods that are varied can be one of these techniques. Potential client cold calling would be another one. Potential customer's homes can also be mailed to directly if you like. However there is an untapped resource that small businesses don't take advantage of. Failing to take advantage of current client referrals is a huge mistake often made. Customer referrals, if used in the correct manner, can become the backbone for your business development plan. The best advertisement for your business is your current customers who are pleased. Finding a way to generate referrals out of your customer base can allow you to grow your new customer base drastically more than you have in the past. It is difficult to figure out a way for you to generate these referrals in an efficient method. There are a few different ways that you can efficiently generate current customer referrals. Any new customer can be offered a bonus or special offer if they are referred to you from a current customer of yours. Both ends of this referral can receive the perk. One example would be to offer a buy one get one free coupon to the current customer and the same offer to the referred customer you signed up. The added costs is really the only realistic draw back to this type of technique. Weighting the cost of new customers is something that must be done to compare. What was the amount of time you used to get this new client? How much marketing was required to bring them in? Both the time you spend and the marketing you develop cost you money. Spending money on these methods usually doesn't cost any more or less than offering a bonus for referrals. Do not forget that this referral bonus is mean to bring in a new customer, but also makes your current customer base more pleased with you.
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