Make your customers your best advocates

A customer referral can be a powerful force. In one study, the Wharton School of Business found that referred customers had a 16% higher lifetime value than other customers, which makes that cohort a key to the success of any business. While it is impossible to guarantee that your customers will tell others about your company, you can stack the odds in your favor with these steps:

1. Show interest in their needs

Your customers are less likely to advocate for you if they believe that you care more about their money than their needs. One way to demonstrate your interest in their needs is to offer free content or services that support both your customers’ objectives and your company’s mission.

For example, American Express and its OPEN Forum strive to support the growth of small businesses. American Express primarily accomplishes this aim with its business charge cards, but it also provides free information and tools via its OPEN Forum. OPEN Forum connects readers to business experts, fellow business owners, and quality content that helps American Express achieve its mission, while also building a client base that is passionate and excited to talk about the company.

2. Reward loyal customers

Rewarding loyalty is a great way to strengthen relationships with your customers. Consider offering a discount or a points program to your current clients, rather than to new customers alone. When you only reward new customers, you run the risk of upsetting current clients who are not eligible for similar discounts or rewards—despite their loyalty to your company. It is ultimately cheaper to retain a current customer than it is to recruit a new one, so showing loyal customers that you appreciate their business can help you create strong advocates and augment your bottom line.

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