Posted on Mar 7th 2016 under Limo Marketing Tips
In fact, referrals are the cheapest and most effective form of marketing and shouldn't be ignored. In its simplest form, referral marketing doesn't cost a dime. All you need to do is provide a great customer experience and tell your clients to spread the word. That's it. But that would be leaving a lot of referral marketing's potential on the table.
The real power of referrals comes through a planned referral strategy that yields regular referrals over time, not just to get a business going, a specific set of strategies designed to bring a limo business owner new clients and qualified leads.
Here's 5 reasons why your Limo Business needs a Referral Marketing Strategy and why you can't ignore the value of it:
Word of Mouth is KING
It's time to understand, optimize, and embrace our customer’s word of mouth, which is happening everywhere, in person, social media, and review sites. Word of mouth is still the most powerful purchasing influencer, with an astounding 92% of people saying they trust a recommendation over any other form of advertising.
If your limo business isn't actively embracing and utilizing your customer's word of mouth, you're failing to engage with your easiest-to-find leads and most likelyyour current customers: friends, families, and acquaintances.
Referral programs are more cost-effective than other forms of advertising
Referral programs have lower customer acquisition costs and higher closing rates than any other form of advertising, so why should your limo business not be willing to budget a referral program?
Without the tools, incentives and analytics that a true referral strategy provides you, keeping track and optimizing your limo businesses referrals will be more of a hassle than the return is worth.
Improving sales revenue, offering a higher conversion rate than unqualified sales leads.
Referral marketing creates a win-win scenario for everybody and generates a better overall ROI from your marketing strategy. Your limo company will acquire new riders without having to drain its marketing and advertising resources. Eager, loyal riders will gladly share their enthusiasm about your brand with their inner-circle and that inner-circle will likely appreciate gaining access to some of their friend's favorite ground transportation services.
Few limo business owners will deny the value of a good referral, and yet most do not have a systematic referral strategy.
Research has proven that we all prefer to buy from people whom we know, like, and trust. Without the establishment of familiarity, likeability, and trust, you frequently have to spend time and money to overcome the pre-existing skepticism in the buyer. In order to make a sale, you typically have to achieve a certain level of trust — and sometimes building that trust is difficult. A good referral allows you to begin the sales process quickly because a certain level of trust has already been built in.
The DriveProfit Advantage
As a successful limousine company owner, you know that 83 percent of your satisfied customers are eager to become advocates for your business. But, did you also know that research shows that the reality is that only 29 percent of customers actually serve as advocates? This indicates a clear need for more targeted outreach in your limousine marketing referral program.
At DriveProfit, we have found that our limousine marketing referral programs consistently shorten limousine company sales cycles. DriveProfit helps our limousine marketing clients drastically reduce the cost of acquiring new clients while boosting the size of each account they are currently selling to.
Good referrals are worth their weight in gold. In fact, a direct referral lead can be worth 20 times more than leads from direct sales or inbound web marketing?
As a limousine company owner, you know that you are in the relationship business. With customer referral strategies an integral part of DriveProfit’s limousine marketing programs, our clients are able to easily ask their loyal limousine customers for referrals while also making it supremely easy for them to respond.