Why are word-of-mouth marketing and referrals so important in service-based industries? And how can you secure more of it?
Speaking to RPM’s sister publication on the My Business Podcast, Alexander Laureti, a partner of accounting firm LMS Advisory explained why word-of-mouth business is critical.
“We don’t have a business development manager or anything like that,” Mr Laureti said, adding that his business relies instead on word-of-mouth referrals.
“I think that if you do a good job and you do the right thing by people naturally, then just in conversations that clients might have at barbecues with their friends and everybody else, if they hear out there that people aren’t getting the services that they require, naturally our name might be put forward as somebody who could help them,” he said.
“The more clients you have and the most customers that you have in, it starts to grow from there, as long as you keep that quality of service up – it does grow.”
Real estate trainer Josh Phegan agrees with this strategy of providing the customers you already have with the highest level of service, saying it is the best way to secure referrals and spread your business scope.
“I say to people that word of mouth is the most powerful form of marketing,” Mr Phegan said at AREC 2016.
“People love to gossip. People love to tell other people about other people that are really good at what they do.”
If you’re already providing stellar service to your current clients, there’s a good chance you have been recommended to their family and friends looking for a quality PM, and continuing to work at that high level will grow your business organically as more people hear about you.