We all love customer referrals. A happy customer who raves about us is our favorite way of getting new business. We believe the greatest compliment a company can ever receive is a referral.How important are customer referrals?
65% of all new business comes from referrals, according to the New York Times
71% of online shoppers read reviews before buying, according to Forrester Research
90% of consumers trust recommendations from people they know, according to the Nielsen Global Online Consumer Survey
Getting a referral means you are doing something right. They let you know that your clients are so confident in the work you do that they are willing to put their word on the line by recommending you to someone else. The trust in that relationship now expands to your new client.
People would rather do business with people they know than with strangers. And being vouched for is just that; it’s personal. When you're introduced to a new client through a positive endorsement, that person has a higher comfort and trust level than through other lead sources.
3 Benefits of Referrals
Referrals instill your trustworthiness and credibility. Making it easier for you to do your best work for your new client.
When referrals come from clients you enjoy working with, you’ll most likely also enjoy working with those referred to you.
Referrals reinforce your relationship with the original client who referred you. You get to make them look good by impressing the clients they referred.
To capitalize on the undeniable power of personal recommendations, here are three surefire ways to generate quality referrals.
1. Exceed Expectations
The first rule of generating customer referrals is simple: Give them a product or service they love! This is something you have to earn. So focus on providing exceptional offerings and you’ll already have won half the battle.
Remember, satisfied customers give you repeat business, but impressed customers will give you referrals. So dazzle them.
2. Don’t Be Shy
Great customer service is the same as asking for a referral. Treat every touchpoint with your customer as such and endorsements will come naturally.
Too many of us forget to ask and some clients need a reminder. So make asking for referrals second nature because you should be proud to ask. Be confident in your product or service.
Tip: Create a referral program in which customers are rewarded for spreading the word.
3. Help Your Clients Refer You
Make it simple and clear how to personally recommend you. The best referral programs make it easy for customers to endorse you. If a customer has to jump through hoops just to refer a friend, it will deter them.
So help your customers by showing them with a referral request on the back of your business card and instructions on printed brochures. For the online world, make it even easier with direct links on your website, emails, and newsletters.
Generating referrals is mainly a matter of developing good habits. It takes a little bit of work, but it will be the best source of new business and to drive revenue.
How is your company leveraging referrals to grow your business? If you don’t have a referral marketing program and you’d like to learn more about how to build and manage an effective one, check out branded app marketing.