Referrals are an extremely effective and cost-efficient revenue generation strategy. Yet, many business owners constantly expend countless resources focused on mass marketing in an effort to appeal to an entire market using a one-size-fits-all approach. With some planning and consistent execution, a referral program offers many benefits to small businesses.

So, why are referral programs a great revenue generation strategy? Let’s consider the following statistics.

• 92% of consumers trust referrals from people they know – Nielsen

• 77% of consumers are more likely to buy a new product when learning about it from friends or family. – Nielsen

• After a positive experience, 83% of customers would be happy to provide a referral. But salespeople aren’t asking — just 29% of customers end up giving a referral. – Hubspot

Be sure to check out the following podcast for more information on creating an exceptional customer service experience.

015: Excellent Customer Service Should Be Your First Focus