Referral Marketing: Want More New Clients? Then This Is A Must Read For You!

Submitted by: Monique Marcus

Want more new clients? Then this is a must read for you!!

Now, you can spend less time advertising and marketing, and get all the new customers you ever wanted with little to no effort on your part. Just do what you do the best, and the rest will follow. They will most likely love your service and gladly tell others about it.

Referrals can have a huge impact on your business. In fact, here is an excellent example on how to quantify the big impact that it will have. For instance, you have a hair salon business where an average haircut is $45. This might not seem like a big transaction to most people, but the amount of impact it will have when it comes to referrals and the bottom line is really, really big.

If you are a salon owner and you have a client who comes in six times a year for a haircut, pays $45 for it, spends an additional $300 per year for other services and products, that is $2,850 in five years, which is the average length that a customer stays with the same salon.


If the client is extremely happy with this hair salon and tells just four of their friends and neighbors about it, and let s be conservative and say that only 25% of those told decide to try it out, that is just one referral. Then the hair salon earned $2,850 more. Combine the original client and the referral client, and you have already made the salon $5,700. This is just because of one extremely satisfied and happy client. Of course we still have to subtract the cost of goods and the marketing expenses, but the lifetime value will be extremely substantial and beneficial.

Let me also share this tidbit: it might not, after all, be as little as you think. Did you know that a client that has been referred as a new client is up to FOUR times as likely to refer new clients AGAIN, since it is the exact same way they were introduced into this business? Now, think about what that impact would have on the bottom line HUGE! And it continues as long as they are satisfied.

Just imagine if those 25% becomes 50% or 75%. A happy client might not just tell it to four friends, it could be 10 or 12, or even more. The number of returning and referred clients can be greater. This is highly possible and easily attainable when you have a structured and organized referral program established for your business.

I hope that given these numbers, this stresses to you the significance of referrals to any business, and start a formal referral program for your business. Consider using these figures to convey to any staff you might employ the importance of satisfying your clients in every aspect so that you can differentiate your business from theirs . Remember, a dissatisfied client can influence far more potential clients to decide not to do business with you as well. One happy client and a single referral can earn you $5,700.

That is why the hair salon should train each and every one of their employees to treat that particular $45 client as if they were wearing a $5,700 price tag around their neck, conservatively.

It is critical that you start a referral program right away if you are not currently following a system that you and your staff are using every day with every customer.

PS. Think about it this way: each day, as clients visit your business, you must have a system in place to empower them to refer new clients to you. This is KEY for your business’ success.

For more information on how to easily implement a referral system:

contact RipCard at 415-251-1980 or email us at

About the Author: I’m an Advertising Executive who believes and witnessed the power of referrals. I want to share my knowledge and experiences, especially to those start up companies, who wants a marketing strategy that is very easy to implement but very effective. Check out our site at



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