A referred customer will always cost less to acquire than a cold lead. You’re also more likely to retain loyal customers who have been referred than a non-referred customer.
With that in mind, referrals are one of the most important lead generation strategies for your business! Yet, how do you encourage your customers to refer your business, without being too pushy or sales-y?
Here is a step-by-step guide to generate positive customer feedback and attract more referrals:
Identify Your Happy Customers.
Naturally, you only want happy customers to refer you since they’re more likely to have positive feedback.
A simple way to gage customer satisfaction is to ask them! Create a short survey asking them how likely they are to refer, give them a call to ask, or where appropriate, even meet in-person.
If you choose to create a digital survey, segment your respondents based on their feedback. For example, if given a scale of 1-10 based on their likelihood of recommending you, anyone who replies in the 8-10 range would be a good candidate for referrals.
Make It Easy for Them to Refer You.
Happy customers are typically very willing to refer you, but you have to make it simple.
For example, we operate a Referral Partner Program where our clients receive a commission based on every new client they refer. The referral process is very simple and completely digital, thus limiting the time expenditure for the referrer.
Simply put, the easier the referral process, the better.
Just like our Referral Partner Program, there are plenty of ways to offer incentives for referrals. A discount, freebie or special gift are great incentives that take very little investment on your part, but can encourage amazing results!
Another tactic is to create a sense of urgency. If you send a message to a segmented list of happy customers letting them know the first 5, 10, or 20 to respond with a referral will receive a special discount, this can get the ball rolling a lot quicker!
With New Clients, Wait to Ask for a Referral.
Even if you are certain a new client is happy with your service, give it some time before asking for a referral.
Customers base their referrals in the value you bring. With that in mind, you want to offer as much value and the best service. Hence their feedback and referral will be even stronger after you’ve done business with them a while.
Your customers want to know you’re vested in them and not just using them to find more business. Consider waiting at least 3 months into a successful partnership before asking for a referral.
Referrals is as much about giving as it is receiving. By helping others, the favor will eventually come back around.
The “referral mindset” relies on your commitment to help your network grow their businesses and set the precedent for future referrals.
Referrals are very powerful, but don’t always reap immediate rewards. Be patient and trust the process.
Sign up to be a referral partner and you’ll get links, banners and other images you can use on your website to help you promote us!
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