For most businesses these just happen from time to time, but have you considered what an impact it could make for your business if you were to start encouraging more referrals?
You probably already know referred leads are better than most, but are you aware of exactly how powerful referrals can be…
According to Nielsen, 92% of consumers trust referrals from people they know. A Marketshare report notes that word-of-mouth can improve marketing effectiveness by as much as 54%. Businesses using referrals as part of their regular marketing see conversion rates up to 70% higher, and they also report a 69% faster close time.
The numbers speak for themselves. Clients trust referrals. Hearing positive things about a product or service has a significant impact on their decision. If you want them to hear positive things about your business, then you’ll need to step up your referral game.
Here’s 3 tips to help you get more referrals:
1. Ask for them
This maybe stating the obvious but most businesses miss out on referrals because they are simply not asking their customers. The best time to ask is when you have just completed the job and the customers are delighted with their service or product. But if you have not already been asking your new customers for referrals then you will likely have a vast untapped pool of old customers who can be contacted and asked to refer.
2. Create a simple rewards program
A rewards program doesn’t have to be a complicated, multi-tiered system with a complex set of rules. In fact, rewarding your customers for sending you referrals could be as simple as regularly tweeting their names, or devoting a section of your website to recognising people who have brought you business.
For example we offer the following reward scheme to our clients for referring a client worth more than £500:
£50 – Successfully refer someone us and we will give you £50
Google Adwords account setup from only £99
A reprint of x250 88x55mm full colour, matt laminated business cards
3. Make it easy for customers to refer you
Many companies miss out on referrals simply because their customers aren’t even aware that they are looking for them. The odds are good that you’ve missed out on an opportunity to let your customers know that you are open to referrals.
A few ways to do this:
– Add a line to your email signature about your interest in referrals
– Mention referrals in the transactional emails you send to customers
– Send a personalised greeting card to your satisfied customers, thanking them and asking for referrals
– Include information about referrals on your business card
We include our referral reward scheme in the signature of our emails. We send a printed referral card and an email when we complete jobs and also have a referral page on our website to make it super simple for our customers to refer, you can see this here: indigomarmoset.co.uk/referrals.
Whatever you do, make sure that your customers are aware that you are open to referrals. It’s your job to keep your business at the top of your customers’ minds.
If you want to start encouraging more referrals for your business and would like help implementing a referral reward scheme, please let us know.