A business referral is when someone in your network recommends your business to a new prospect. Such referrals often happen spontaneously but businesses can influence this through appropriate strategies. Therefore, it can also be defined as a marketing strategy, used to attract new customers to a product or service by usually using word-of-mouth. If you provide a great customer experience, word of mouth referrals will happen naturally. Referrals are often the most rapid, cost-effective way to drive business. That is why it should be a part of every business, even if it is just a small reminder to your top customers that referrals are always welcome.
Apart from word-of-mouth, there are other main referral types that can help your business to succeed. For example, online reviews. In fact, 88% of consumers believe online reviews are just as trustworthy as a personal recommendation from a family member. Also, social sharing through social media profiles, as we normally connect with the people that surround us and trust their judgements.
Its process is very simple. You first identify key individuals in your sphere of influence. Secondly, invest time and effort in those relationships, delighting them whenever you can, and then, you make the ask. However, there are also many ways to get referrals without directly asking for them. For example, exceeding the customers’ expectation, for them to share with others how surprisingly good your product/service is. Moreover, adding a customer loyalty program, and offer rewards and incentives. Also, keep your clients happy, innovate and create shareable experiences.
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