Word of mouth marketing: how to get more referrals
Most small businesses run on referrals and leave them to chance. A few small habits turn happy customers into a steady source of new ones.
By the Desk editorLast checked 3 October 20262 min read
The short answer
Ask. The habit that turns word of mouth into a channel is asking every happy customer, at the moment they are happiest, and making it easy: a card, a link, a line in your follow-up text. A small thank-you for a referral is fine; paying for Google reviews is not.
The three moments to ask
- When the job is done and the customer says thanks. Say you would welcome a referral, and hand over two cards.
- In the follow-up message. One line: "If you know anyone who needs the same, we'd be grateful for the introduction."
- When a customer compliments you. Ask then whether they would mind telling a friend, or leaving a review.
Referral offers that work
| Offer | Good for |
|---|---|
| A thank-you gift card for the person who refers | Trades, services, clinics |
| A discount for both the referrer and the new customer | Cafés, salons, gyms |
| A donation to a local cause for each referral | Businesses with a community following |
| First-visit offer on a card a customer hands to a friend | Shops and hospitality |
Keep it simple, honour it every time, and write the terms on the card.
The line you must not cross: reviews
A thank-you for a referral is fine. A reward for a review is not. Google's rules ban offering "incentives – such as payment, discounts, free goods and/or services – in exchange for posting any review", and the ACCC says it is against the law for a business to create fake or misleading reviews or arrange for others to. Ask for honest reviews from every customer, with no reward attached.
Referral messages are marketing
If you text or email past customers asking for referrals, the Spam Act's consent and unsubscribe rules apply. The rules.
Common questions
How do I get more referrals?
Ask every happy customer at the right moment, make it easy with cards or a link, and thank everyone who refers.
Can I reward customers for referrals?
Yes, a referral reward is a normal offer. Rewarding reviews is different and breaks Google's rules.
What is word of mouth marketing?
Getting new customers through recommendations from existing ones, and doing things on purpose that make those recommendations more likely.