- It’s free, low cost or at worst, it’s pay-for-results-only advertising
- A client who comes to you by referral is much more likely to refer business to you themselves
- People prefer to buy this way, so are less likely to shop around
- Referred clients are less price sensitive
- Referred clients are more loyal and spend more
- People who are referred to you are easier to sell to because they are less sceptical
- Conversion rate is higher, so you have to see fewer people to get the same amount of business
If every one of your customers referred you just one new customer this year, then you would double your client base, your sales would double and your profits would more than double.
So, how do you go about getting your satisfied customers to give you referrals?
Firstly, earn the right. Give your customers awesome, world class service. Do something that is unexpected. Make big promises and remind your customers that you kept your promises.
Secondly, ASK for referrals. After you have earned the right, ask your client who else they know that might like or benefit from your product or service. Better still, ask if they will make the call themselves or let you “borrow” their name as an introduction.
Thirdly, when people thank you for excellent service, ask if they would mind putting it in writing as a testimonial.