Why Waiting for Word-of-Mouth is Costing You Money
Most business owners in Brisbane tell me the same thing: "Most of my work comes from word-of-mouth."
That sounds great on the surface. It means you do a good job. But here is the cold, hard truth: If you are just waiting for the phone to ring because someone might mention your name at a BBQ in Chermside, you aren't running a growth strategy—you’re running on luck.
Word-of-mouth is the best lead you can get. These customers already trust you, they don't haggle as much on price, and they are ready to buy. But relying on "passive" word-of-mouth is slow. To grow a serious business, you need to take that word-of-mouth and amplify it. You need to turn a random occurrence into a predictable system that brings in new enquiries every single week.
In this guide, I’m going to show you the exact steps to take your existing happy customers and turn them into a volunteer sales force. We aren't talking about complex "viral loops" or technical jargon. We are talking about simple, data-backed ways to get more people talking about your business so you can make more money.
The Real Value of a Referral (By the Numbers)
Before we dive into the "how," let’s look at why this matters for your bank account. I’ve looked at the numbers for dozens of local service businesses—from electricians in Coorparoo to lawyers in the CBD.
On average, a referred customer: Closes 50% faster: They don't need to see five different quotes. They already want to work with you. Spends 15-25% more: Because the trust is already there, they are more likely to take your advice on bigger jobs. Has a higher lifetime value: People who come via referral are more likely to refer others themselves.
If your average job is $1,000, a referral isn't just worth $1,000. When you factor in the saved time on sales calls and the potential for them to bring in another customer, that single referral is easily worth $2,500 to your business over twelve months.
Step 1: The "Moment of Maximum Happy"
The biggest mistake business owners make is asking for a referral at the wrong time. Usually, they send an invoice two weeks later and stick a small note at the bottom saying, "We love referrals!"
That is a waste of time. By then, the customer has moved on. They are thinking about their next bill, not how great your service was.
To get results, you must ask at the Moment of Maximum Happy.
For a landscaper, this is the second the customer walks out and sees their new deck for the first time. For a mechanic, it’s when the customer feels how smooth their car drives after a major service. This is when the dopamine is hitting their brain. This is when they are most likely to say "Yes" to helping you out.
The Action Plan: 1. Identify the exact moment your customer feels the most relief or excitement. 2. Train your staff (or yourself) to ask a simple question in that moment: "I’m so glad you’re happy with the result. We’re looking to help more people in [Suburb Name]—is there anyone else you know who needs a hand with this?"
Step 2: Make it Impossible to Forget You
People are busy. Even if they love your work, they will forget your name three months later when their brother-in-law asks for a recommendation. You need to stay "top of mind" without being a pest.
This is where many businesses fail. They think they need to post on social media five times a day. You don't. You just need to show up where they are looking. One of the best ways to ensure you stay visible is to get more phone calls from Google Maps by keeping your profile updated with recent photos of your work. When a past customer sees your business name pop up while they are searching for something else, it triggers that memory.
Another way to stay relevant is to give them something physical. If you’re a plumber, leave a high-quality magnet on the side of the fridge. If you’re a mortgage broker, send a handwritten "congratulations" card one year after they moved into their house. It sounds old-school because it works. It costs about $5 and keeps you in their kitchen for years.
Step 3: Incentivise the Right Way (Don't Buy Friends)
I see a lot of Brisbane businesses offering "$50 cash for every referral." I’ll be honest: this often feels cheap. It can actually make your customer feel awkward, like they are selling out their friends for fifty bucks.
Instead of cash, try Dual Incentives. This is where both the person referring and the new customer get something.
Example: "Refer a friend and you get $50 off your next service, and they get $50 off their first job."
This turns your customer into a hero. They aren't "selling" to their friend; they are giving their friend a discount. It changes the whole dynamic from a transaction to a favour. This is a key part of how you can win your suburb by becoming the "go-to" person that everyone recommends because it benefits everyone involved.
Step 4: Use "Social Proof" to Amplify the Message
Word-of-mouth doesn't just happen in person. It happens online every time someone looks at your reviews.
When a customer gives you a compliment in person, that is a private win. When they put it on Google, it’s a public asset that works for you 24/7. Most business owners are terrified of reviews or just too shy to ask.
The "One-Two Punch" Strategy: 1. The Verbal Ask: At the Moment of Maximum Happy, ask: "Would you mind leaving us a quick review? It really helps a local business like ours." 2. The Direct Link: Don't tell them to "find us on Google." Send them a text message right then and there with a direct link to your review page. If they have to click more than twice, they won't do it.
I’ve seen a tiler in North Lakes go from 5 reviews to 50 reviews in three months just by sending a text link before he left the driveway. That increase in reviews directly led to a 30% increase in phone calls because people trust what other locals say more than what you say about yourself.
Step 5: Network Where it Actually Matters
Not all word-of-mouth comes from customers. Some of the best leads come from "Strategic Partners." These are businesses that serve the same people you do but don't compete with you.
If you are a house painter, your best friends should be real estate agents and floor sanders. If you are a wedding photographer, you should be best mates with celebrants and florists.
Don't waste your time at generic "networking breakfasts" where everyone is just trying to sell you life insurance. Instead, focus on what actually works at events by building deep relationships with 3 or 4 key partners who can send you work every single month.
How to set up a partnership: Don't ask for work first. Find a way to help them. Send them a customer first. Once you’ve proven you’re reliable, suggest a "preferred partner" arrangement. Make it easy for them: give them cards or a specific offer they can give to their clients.
What to Avoid: The Money Wastes
I’ve seen people spend thousands on things that don't work for word-of-mouth. Here is what to avoid:
1. Expensive Referral Software: Unless you are doing 500+ transactions a month, you don't need a $200/month software to track referrals. A simple spreadsheet or a note in your CRM is fine. Spend that money on a nice gift for a high-value referrer instead. 2. Generic "Bribe" Giveaways: Running a competition like "Win an iPad if you refer someone" usually results in low-quality leads. People will refer their cousin who isn't actually interested just to get an entry. You want quality over quantity. 3. Paying for Fake Reviews: Just don't. Google is smart, and Brisbane locals are smarter. If you have 50 five-star reviews that all sound like they were written by a robot in another country, people will smell a rat and click away.
The Timeline: When Will You See Results?
This isn't an overnight fix. If you start asking for referrals today, you probably won't see a massive spike in the first week.
Weeks 1-4: You’ll start collecting more reviews and planting seeds with current customers. Months 2-3: You’ll notice the "phone call quality" starts to improve. You’ll spend less time explaining who you are because the caller already knows you’re good.
- Months 6+: This is when the "snowball effect" kicks in. The people who were referred to you start referring others. This is where your marketing costs actually start to go down because your business is generating its own momentum.
Summary Checklist for Brisbane Business Owners
If you want to turn your happy customers into a lead-generation machine, do this in order:
1. Identify your "Moment of Maximum Happy" and create a script for asking for the referral. 2. Set up a text message template with a direct link to your Google reviews. 3. Create a Dual Incentive offer that makes your customer look like a hero to their friends. 4. Pick three non-competing businesses and reach out to start a referral partnership. 5. Stop wasting money on generic advertising until you have fixed your referral system.
Marketing doesn't have to be complicated. It’s about doing the simple things consistently. If you treat every customer like they are the key to your next five jobs—because they are—you will never run out of work.
Need help getting your local marketing sorted? At Local Marketing Group, we help Brisbane businesses get more phone calls and more customers without the fluff. If you want a clear plan to grow your business, contact us today.