Every day, there are more than 2.4 million brand-related conversations in the US. Are people talking about your company?
Referrals transform a business from operable to booming. In fact, 65% of new business comes from referrals. As you increase your referrals, you increase your profit. Sure, referrals are hard to track, but they’re worth the work.
If you can master the art of referrals, your company will go from zero to 100 much quicker. Here’s how a lucrative referral process works.
Prime the Pump for A Referral
Talk about referrals before a customer even signs up as your client. Integrate key phrases like:
“Here’s why our customers send us referrals,”
“We’ve grown so much because of our customers’ referrals,” and
“People like to refer us because we work hard to take care of our customers.”
These remarks set the expectation that your clients refer new customers. And you should be straightforward about why you try to keep them satisfied. Tell customers you want them to be happy so they can send you other people to help too.
Ask for Referrals at the Right Time
People feel great immediately after they find relief. If you’re relieving a pain point for your customer, ask them for referrals as soon as their problem goes away. Otherwise, they forget how bad things were before you solved their issue.
Think about it like an illness. If my stomach hurt and your miracle pill made my stomach ache go away, I’d be so excited that I’d tell other people about it. But a week later, I may have forgotten my stomach ever hurt. If you wait too long to get referrals, the pain will have become too distant.
Plus, with the right timing, incentives for referrals become less important. Sure, it’s nice to offer a free month for a referral. But, if people are pleased with your product, they’ll want to recommend you to others with or without a bonus.
Know Your Referral Numbers
Do you know exactly how many referrals you got last month and where they came from? If you don’t, you have a problem. First, identify where your referrals come from. Anytime you get a client, ask them how they came to learn about your company. Make it part of the signup process.
People trust friends and family for referrals more than any type of advertising. Yet those referrals rarely show up as you calculate your website traffic or the effectiveness of your mailer.
So ask, “How did you find out about us? Did anyone recommend us?” every time you onload a new client. Then, if you see a trend, try to replicate it.
Say Thank You
Think about how much each lead costs. When someone gives you that lead for free, that’s cause for over-the-top gratification. You can’t forget to say thank you.
There are two ways to thank someone who refers you.
1. Refer them to others.
If they referred you, return the favor. Take the time to find a few people who may benefit from their business and make a recommendation.
2. Give a thoughtful gift.
A thoughtful gift shows how much you value the recommendation they gave. Consider giving gift cards to restaurants or other places you know they enjoy, or even choosing a bottle of wine. Monetary gifts are great, but thoughtful gifts help you stand out as someone who offers superior service.
Every customer has connections to at least three other potential customers. The only thing that keeps you from getting those referrals is failing to ask. Make referrals part of your organization’s culture and watch your business grow more than ever.