When I caught up with him this past week about how things were going, I was ecstatic to hear that life on his own was actually more fruitful than expected! In fact, he reported that he had just completed his most profitable month in many years. How great is that?

When I asked him why he thought things were going so well, his answer was quite simple and powerful: “I’m talking to my clients every day now, like I was when I first got into the business, instead of only talking to them half the time like I was in the partnership!”

His comment underlines something we at YesTrak firmly believe in: When you talk to your clients, good things happen.

Small business owners across the country continually ask us for advice about how to make more money. They want to know which marketing strategies we like best in driving new phone calls. They are curious about what to spend on different advertising channels. They are looking for tips and information on how to increase prospect conversion percentages… The list goes on and on.

The answer we provide over and over again is to start by talking to your existing customers first. Find out what they like about you, and what they don’t like. What they don’t like is equally as important because it allows you to fix problems and repair relationships.

And once clients are happy, that’s when you can (and should) ask them for referrals. Why are referrals so critical? Because referrals will always be your best source of new revenue.

Did you know that:

1. 59% of people consult friends and family for purchasing decisions. (Opinion Research Co.)

2. 92% of people trust referrals from people they know. (Nielsen)

3. People are 4 times more likely to buy when referred by a friend. (Nielsen)

4. The lifetime customer value of a referred customer is 16% higher. (Wharton School of Business)

5. 75% of people don’t accept advertisements as truth. (Hubspot)

Pretty clear cut, right? That’s why we encourage business owners to maximize existing relationships first before looking to create new ones. It’s not that we don’t like marketing that attracts new customers– quite to the contrary, we LOVE marketing. However, spending money on costly advertisements before making sure the existing base is happy (and referring others) is a mistake most business owners cannot afford to make.

So next time you are looking at new strategies for growth, start by picking up the phone and calling your clients. You’ll be surprised at how profitable you can become just by saying ‘HELLO’!