A very fashionable aspect of online marketing at the moment is the tapping into Web 2.0. Online marketing firms are generally bandying around the words “Facebook”, “Digg” and “YouTube” as if they are the only ways of getting custom in the current internet environment, but really it’s just a refinement of an age old form of viral marketing: the customer referral.

Firstly, here’s the reason why you should not ignore social marketing – whether it’s in the more modern Web 2.0 sense, or the traditional word of mouth approach: People are becoming immune to marketing hype and hyperbole. Too many promises have been broken, and with every holiday shop on the web offering ‘amazing prices’ and ‘unforgettable experiences’, it’s no wonder the customer has become jaded and cynical. This is not to say these slogans won’t be believed, you just have to prove it – and what better way to do this that with an unbiased third party endorsing your product and recommending you to their friends? You telling Customer X that you offer the best prices around is advertising hype. Customer’s X’s brother telling Customer X about your amazing prices is a hot tip.

The trouble is that 99% of your customers, unless you have given them incredible (and I mean really incredible) customer service or the experience of a lifetime, will not pass on your name to others, no matter how much they enjoyed their trip. Sure, if they’re asked about decent holiday providers, they may mention you, but it’s by no means a sure thing – and this is a problem, because your satisfied customers may actually be the best sales people you’ve never had. Generally, it’s not because they don’t want to help you either – the rise in positive customer reviews on websites shows that – it’s because it doesn’t occur to them to mention you to friends, families and colleagues. Some websites have “email to a friend” links, but in truth these rarely get the response needed because it’s so impersonal. Instead, try sending a personalised email out to them when they return from their holiday. Thank them for their custom, express your hope that they enjoyed their trip and ask politely if they would mind passing your name onto their friends if they had the experience you hope they did. With their experience fresh in mind, they will be more willing to pass on their wholehearted recommendation to interested acquaintances.

Of course, this will only pick up the most evangelical of your clients. You can appeal to your more mercenary customers with the offer of a reward for passing on your name to others. By offering an incentive to be your salesman, you’ll find you keep your new freelance salesperson happy, as well as ensuring they help you get your message out. This is also easier to track, as you can give them a referral code to pass on, showing you which customer has helped you out and thus who the reward should be directed to. Be careful with the reward you offer however: obviously, a luxury holiday company offering a £25 off voucher will look ridiculous, but that might work nicely for a budget company – a pair of tickets to the symphony might be more appropriate for the former. It’s also important not to offer an incentive that’s too extravagant. A free holiday could lead to your previously satisfied customer feeling they were ripped off the first time around!

Although you won’t hear customer referrals discussed too much in modern online marketing circles, they are a powerful tool to drive the most targeted traffic. While it shouldn’t be the basis of your business, a few customer referrals can augment an already successful company with targeted traffic ready to believe your marketing promises ahead of your rivals in the saturated holiday market place.