What type of promotional strategy could increase word-of-mouth advertising?

Referral programs are specifically designed to incentivize existing customers to recommend a service or product to others, creating a direct avenue for word-of-mouth advertising. By offering rewards or discounts for successful referrals, businesses encourage satisfied customers to share their positive experiences with friends and family, effectively expanding their reach through personal recommendations. This type of promotion taps into the trust and rapport that individuals have within their personal networks, making it a powerful method for increasing brand visibility and credibility.

While the other promotional strategies may have their benefits—for example, free consultations can attract new clients and regular newsletters keep customers informed—none inherently create the same direct incentive for customers to spread the word as effectively as a referral program does. Direct mail campaigns can reach a wide audience, but they lack the personal touch that comes from direct recommendations from known individuals.