Why Do You Want Referrals?
Referred customers are the most profitable kind of new customer your business can have. They come pre-conditioned to want to buy. Traditional marketing promotes your business, your products, your services, and your prices. The best that traditional marketing can achieve is to get prospective customers through the ‘8 Steps of Buying’ so they get to Step 8 as soon as possible – spend money.
A prospective customer who has been referred to you might still be at Step 6 (better than being at Step 1) and many of them are already approaching Step 8 – they are ready to spend money. Logic tells us, therefore, that the more new customers you can have who are already at or close to Step 6 and beyond, the better.
That is why you want referred customers. The best way to get a steady stream of referred customers is not to focus totally on marketing your products, services and prices – but to promote your referral program every day. Let’s dig into that a little.
Referrals Are Not Automatic
Most people are just ordinary human beings with ordinary goals, desires, strengths and weaknesses. The most powerful words in their vocabularies are Easy, Now, Free, Reward and Thank you. Every marketing executive knows that, so those words (or the power behind them) are always being used. Your competition uses the same words to market their own products and services. The best way to be noticed in today’s world is to be different.
‘Different’ stands out from the crowd. ‘Different’ gets noticed.
So, to really get ahead of your competition, be ‘different’ with how you use words like Now Reward and Thank you. That is where your referral program comes in – it rewards your existing customers for simply referring someone. Then it rewards them again, when that someone buys. Then it rewards them again, when they have referred an agreed number of new customers to you. Your customers want to refer their friends and neighbors.
But here’s the problem - they don’t always get around to it.
They sometimes tell their friends and neighbors to buy from you, but they don’t make a habit of it, like they should – for their benefit, and for yours. People are just human, so they need to be reminded. One of the most-spoken sentences is “How many times do I have to tell you?” And then there’s the old joke “I told my wife I would do it, so why does she keep reminding me every six months.”
And that is why referrals do not come in automatically – because your customers are only human.
Keep reminding them to refer your business, your products, your services, and your prices every day. Every contact you have with every customer is a perfect opportunity to promote your referral program.
- When they visit your place of business they should see and hear about ‘their’ referral program (make it feel like it’s theirs, not yours)
- When they phone in or send a text, include the benefits of the referral program in your response
- When they follow you on Facebook, Instagram, Twitter, Linkedin, etc, they should keep being reminded to refer and get rewarded because it’s easy
- When they get their monthly statement from you, include something personal about the program
- When they pay, say thank you, and remind them to refer
- When they get a communication from you about the person they referred and the reward they are due – remind them to keep referring
- When they see or hear your regular ads and marketing pieces, make sure they also get reminded to get rewarded by referring
You should promote your referral program every day, because it will make you stand out from your competition. it will strengthen your relationship with your customers, it will encourage them to keep doing what's easy, by doing it now, so they get a thank you by way of a reward, and that will drive more profitable business to your door. If you would like to learn more about how to promote your referral program, please click here to contact us so we can answer your questions and show you how it all works.