Babs leaned back in his chair, arms crossed, a slight smile playing at the corner of his mouth. Around the table sat the usual faces — some tired, some curious, all here because they were stuck in some version of the same problem: How do you grow a business without losing what made it special in the first place?
It had taken Babs a while to figure that out himself. He wasn’t new to business — he’d run a few before, some crashed hard, some limped along until he finally let them go. But now he was running a small six-figure business alongside this mastermind group — a business that had started almost by accident.
See, people kept coming to him with the same kinds of questions — about marketing, growth, customer retention — and Babs, being Babs, couldn’t help but try to figure it out. He started noticing patterns, reverse-engineering what the big companies were doing and wondering why small businesses weren’t copying those strategies. So he shared what he learned, and people kept coming back.
“I’m not an expert,” he liked to say. “I’m a guide. I’ve seen where the traps are.”
Today’s trap was about word-of-mouth marketing. Everyone knows it’s the most powerful way to grow, but the moment you try to formalise it — set up a referral program, partner with other businesses — the whole thing risks falling apart. It starts to feel forced. People stop trusting it. That’s the cliff Babs wanted to help them avoid.
“Have you heard of Liberowe?” Babs asked, scanning the room.
A few nods.
“Talia Loubaton launched it in 2022 — a fashion brand. Last year, they pulled in £1.2 million in sales. This year, they’re on track to hit £2 million.”
Now he had their attention.
“They didn’t blow up on social media or drop a massive ad campaign. They built it through word-of-mouth — the right way. And they managed to scale it without losing that personal touch.”
Babs sat forward, elbows on his knees. “That’s what we’re talking about today — how to grow your referrals without losing the authenticity that made people recommend you in the first place.”
He grabbed a marker and walked to the whiteboard.
“Let’s get into it.”
1. Why Word-of-Mouth Marketing is Powerful
“So,” Babs started, writing Trust on the board, “why does word-of-mouth work better than ads?”
“Because people trust their friends more than they trust ads,” someone said.
“Exactly.” Babs nodded. “If someone you know tells you a restaurant is amazing, you’re probably going to check it out. If you see a flashy ad saying the same thing? Maybe not.”
“That’s why Liberowe’s growth wasn’t about the clothes — it was about the connection. Talia remembered customer names. She asked for feedback. She made people feel like they mattered. And when people feel valued, they talk.”
Babs glanced around the room. “So, let’s start there: Are your customers talking about you when you’re not in the room? If not, why not?”
2. Building a Referral Network with Strategic Partnerships
Babs circled Partnerships on the board.
“Liberowe didn’t grow in a vacuum. They partnered with retailers like Net-a-Porter and Harrods — places that already had customers who valued high-end fashion.”
He looked toward Funmi, who ran a beauty salon. “Funmi, who are your customers already buying from?”
“Skincare brands,” she said.
“Right. So imagine partnering with a skincare brand — maybe you offer a joint promotion or host an event together. Now you’re reaching their customers without having to convince them you’re trustworthy because the trust is already there.”
He underlined Alignment. “The key is to find partners whose customers already fit your brand. If Funmi partnered with a car dealership, would that work?”
A few people laughed.
“Exactly,” Babs said. “Find the right fit.”
3. Sustaining Growth Through Customer Loyalty
“Here’s the mistake most people make,” Babs said, leaning against the table. “They treat referrals like a transaction. They give a discount for every referral — and yeah, that works for a while — but what happens when the discount ends?”
“They stop referring,” someone said.
“Exactly. But what if they’re referring people because they love the experience?”
He looked at Funmi again. “What if you remembered every customer’s name? What if you sent them a thank-you note after their appointment? What if you gave them a free treatment — not because they referred someone, but because you appreciated them?”
“That’s what Talia did,” Babs said. “She didn’t just reward people for referring others — she made them feel like they were part of something. That’s why they kept talking about her brand.”
4. Maintaining Authenticity as You Scale
“Here’s where it gets tricky,” Babs said, walking back to the board. “You start growing, more people come in, and suddenly you think, ‘We need a formal referral program.’”
He turned around. “What happens then?”
“It feels forced,” someone said.
“Exactly.” Babs pointed at the board. Keep it real.
“Liberowe never made it feel transactional. Talia hosted trunk shows where customers could give feedback. She made them feel part of the creative process. That’s why it worked.”
He smiled. “People don’t like feeling used. They like feeling valued.”
5. Measuring and Improving Your Word-of-Mouth Strategy
“Here’s the part most people skip,” Babs said. “You need to know what’s working.”
“How do you figure that out?” someone asked.
“You ask,” Babs said simply. “When a new customer comes in, ask them how they heard about you. Was it a friend? Was it online? Track that data.”
He wrote on the board: Track. Adjust. Repeat.
“If 80% of your referrals are coming from a specific partnership, double down on that. If your referral program isn’t working, change it.”
Conclusion
Babs turned and leaned against the table, arms crossed.
“Scaling word-of-mouth marketing isn’t about giving away discounts or setting up some fancy referral app. It’s about giving people a reason to talk about you — and making sure that reason stays true even as you grow.”
He smiled. “Liberowe built a million-pound business doing exactly that. Now the question is — what’s stopping you?”
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Because here’s the thing: Success isn’t about luck — it’s about patterns. Once you spot them, you can’t unsee them.
“Success is the sum of small efforts, repeated day in and day out.” — Robert Collier
