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Referral Programs
The referral program is the most important and most valuable marketing tool a business can have. Word-of-mouth marketing is the most successful marketing campaign for several reasons.
First, people place trust in the person giving the opinion, while an advertisement is from a biased source. The next reason is that referrals are generally local, so you enjoy the benefit of geographic marketing. Last but certainly not least, the overall costs are the least of any other marketing campaign.
Essentially, the goal of all grass roots marketing campaigns is to build a fan base such that people are willing to do marketing for you for free (or, at least low compensation). While it’s best to have a formal program with referral cards, and to give your customers an incentive for their favor, the overall cost of grass root marketing, including referral programs, is the least expensive of any other marketing campaign and should be near the top of your company’s priority list.
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