Small Business Success

[#1]

We regularly visit Peachtree users and other small businesses as part of our ongoing research to find new ways to improve our products and services. Last week, some coworkers and I visited Bob Butts, owner of Tax Shop in Alpharetta, Georgia. Bob has a lot of experience in accounting and in running a business in general, and he provided us with some great insights and new ideas.

As we were packing up to leave, Bob told us about his most successful method of finding new clients. He distributes coupons to his existing clients that offer a $25 referral fee for each new client Bob takes on. He told us, “It’s the most effective advertising I’ve ever had.” I don’t want to reveal the specific numbers Bob shared with us on how many new clients he’s acquired through this program, but it’s substantial. This is a pretty basic method of guerilla marketing that I would bet most small businesses have tried or at least thought about. Does Bob have a secret he didn’t tell us, or is this just about having really satisfied customers who just need to be asked (and offered 25 bucks) to tell their friends about you? Does your business have a referral program? Does it work? Mike Savory Peachtree Product Manager

Bob Butts, CPA

[#2]

My dentist offers a free iPod or $100 gift certificate for referrals. His flyers are so colorful it's an enticing offer, even though my husband and I each have one already!

Shari

[#3]

That's a good point, Shari. Sometimes flashy "toys" can have a greater psychological effect than the monetary equivalent.