How Customer Referrals Can Help Power Your Business

Customer referrals are as good as gold. However, we’re surprised how many companies don’t take advantage of this. There’s no better salesperson than a satisfied customer.

If you find yourself constantly having to drum up new leads for your business, then maybe it’s time to incorporate referrals into your marketing strategy. In fact, leads generated through referrals are much more receptive to your offer than cold leads.

Below we highlight the importance of referrals and how they can be used to grow your business.

Why Are Referrals Important?

With so many different marketing strategies in existence you’d be surprised at how few business owners actively seek out referrals. This style of marketing is usually referred to as mouth-to-mouth marketing, and it’s incredibly effective.

Think about it, how often have you bought something just based upon the recommendation of a friend alone? This works the same way in the business world.

Put simply, there is no better way to generate new business than to have it sent your way by someone who is already happy working with you.

How to Source Referrals

There are multiple ways you can effectively generate referral leads for your business. Below we offer three tips to ensure a steady stream of referrals, no matter your style of business.

1. Impress Your Current Customers

Your ability to generate referral leads depends upon the quality of your service or product. You need to be able to delight your existing customers if you want this strategy to work. Lukewarm customers won’t speak on your behalf, they need to become fans of your company.

How do you do this?

By going above and beyond what your products and services offer. It’s simple in theory, provide a high-quality product or service and have responsive and helpful support. If your customers feel taken care of, they will take care of you.

2. Ask for a Referral

Chances are your customers are busy. Even if they’re super impressed with your company they might just forget about it.

This is where the power of the ask comes in. Once you have a customer far enough through your pipeline you could have a follow-up email that simply asks for the referral.

Now, if you don’t feel comfortable doing this, then consider combining it with the final step below.

3. Consider Referral Rewards

Referral programs can help to give your customers an added incentive to refer customers your way. This can be something like a discount on a future purchase, or even a percentage of sale they send your way.

Get creative, but make sure it’s of benefit to your existing customers. Sometimes, receiving recognition or thanks for the referral can be enough.

When it comes to generating referral leads for your business you have absolutely nothing to lose. However, any successful referral program starts with earning it by impressing your existing customers. We hope the above tips will help you grow your business with the power of referrals.

If you’re looking to transform any aspect of your existing digital marketing strategy, then reach out to our team today.

Image via Chevanon