Which customers are most profitable for you and what marketing tactics work best to attract them and encourage customer loyalty? In a recent survey, Huzzah Media found there’s a big gap between what marketing methods small business owners use and the ones they’d like to use if money were no object.

By far the top way small business owners engage with customers is their websites, cited by more than 80 percent of entrepreneurs. Next is the Yellow Pages, cited by more than 65 percent, followed by social media, used by nearly 55 percent.

Attracting new customers means nothing, of course, if they don’t buy anything, so the study also asked small business owners where most of their sales come from. Repeat customers were by far the biggest source of revenue for more than 43 percent of entrepreneurs, while new customers accounted for about 19 percent of revenues.

Interestingly, “word-of-mouth” was cited by 36.39 percent. In other words, new customers driven by existing customers’ recommendations are the second-biggest source of revenue—more than new customers who come to a business from other sources.

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Along the same lines, when asked what marketing method is most successful for them, a whopping 52.22 percent of small business owners cited “friend referrals.” In comparison, just 33.23 percent say advertising is their most effective marketing method.

Clearly, most small business owners have a baseline online presence (that is, a website), and most are also using social media (although there’s definitely room for improvement there). But few are taking their online presence to the next level by using tools such as customer loyalty programs and mobile apps to their fullest extent. These can be great ways to increase word-of-mouth, retain existing customers and drive new ones.

Read more: The Power of Customer Loyalty

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