Using Referrals to Get More Customers

Let’s get straight to the point; happy customers are your best salespeople! Yes, when you leverage the satisfaction of your current customers to create a thriving referral network, you will drive a continuous and sustainable cycle of growth for your business.

As business owners, we all understand that acquiring new customers can be challenging and costly. While traditional marketing methods are reasonably effective, customers who have used your products, and who know they are going to get good service from you, can create a buzz around your business.  So, let’s explore how you can tap into the power of referral marketing to grow your customer base.

• Why Customer Referrals Work

Think about the last time you were looking for a new mechanic to service your car, or even just for your next book to read. Chances are, you asked a friend or colleague, who you trust, if they could recommend something or someone.  Before we part with our hard-earned cash, we all want to know that someone has received good service before us.

Customer referrals work because they rely on trust. When a customer refers your business to others, it’s a personal endorsement. The new customer comes with a pre-established sense of trust and expectation. Someone has recommended your products or services.

So, do you have any referral marketing strategies in place in your business?  If not, it’s time to consider what you can do to increase your customer referrals.

• Harnessing the Ripple Effect in Business Networking

It’s amazing the way a single positive interaction can lead to a series of referrals and new business opportunities. When a customer refers your business to someone they know, it creates a ripple effect that can spread through their entire network. This is part of the reason why customer referrals are so powerful – they can extend your reach far beyond your immediate audience, to the entire network of each and every connection.  And as part of a business growth community, the power of connection can extend your reach to endless opportunity.

When you build on a good first impression within your business networking groups, by building relationships with other businesses, you can cultivate a culture of mutual respect and referrals. They can recommend your services, and you can recommend theirs.  Imagine the ripple effect if you build a strong relationship with 20 people, or 50 or 100.  When business owners recommend services within a community, you also increase your credibility and expertise status.

To harness this ripple effect, focus on creating exceptional experiences for your customers. When your service or product leaves a lasting impression, it increases the likelihood that they’ll talk about you to others.

• The Art of Asking for Referrals

It’s true, asking for referrals can feel awkward, but it doesn’t have to be. The key is to be authentic and sincere. There’s nothing wrong with asking your customers or business colleagues to refer you on, when you are providing a great service that they (or someone they know) may need.  Consider framing it as an invitation to share something valuable.  Indeed, you are being helpful to your new customers by providing a high-quality product, with great service too.

When it comes to asking your customers to refer you to friends and family, ensure you express gratitude for their current loyalty as a customer.  This shows you value them and want to keep their custom.  Ask them if they know of anyone else who might benefit from your product and/or service.  This builds rapport but also shows your willingness to help others.  You can also offer incentives via a referral program, if their referral results in acquiring a new customer.

• Creating a Referral Ecosystem

If you are part of a network of businesses that refer customers to each other, it can be a powerful way to increase your customer base. The referral ecosystem is often already established as part of the culture within a business community. Within a business networking community, business owners are there to support each other, so giving and receiving of referrals is all part of a 2-way street. In the early stages of building relationships, be prepared to give more than you receive.

When business networking, you can identify potential partners by looking for businesses that serve a similar target market, but don’t compete directly with you. Establish a connection by building relationships with business owners within your networking group or community. Remember, referrals may take a while to first take off, but the more work you do in building a connection, you’ll suddenly discover the referrals coming thick and fast.

You can, of course, develop a program that rewards other businesses for referring customers to you.

• Networking Alchemy

Networking is the (not-so) secret sauce for referrals. Attend industry and networking events, including tradeshow, conferences, online networking and webinars, to connect with potential referral partners. And remember to follow-up with anyone you met, either online, via email or social messaging, or perhaps with an old-fashioned telephone call! Join business growth communities with members who are like-minded, who all want to succeed and grow their businesses.

• Amplifying Referrals with Partnerships

There’s no doubt that partnerships can significantly amplify the impact of your referral marketing. By collaborating with complementary businesses, you can tap into each other’s customer base and create mutually beneficial referral programs.

When you form strategic alliances, you partner with complementary businesses to cross-promote each other, or work on joint ventures or specific projects that will be of mutual benefit. Affiliate marketing is another way to work with other businesses to promote your products or services.

Referrals are a valuable asset, so treat them with care and it’s easy to see how the power of referrals can grow your business and attract more customers. Remember, referral marketing thrives on word-of-mouth. The conversations your customers and connections have with their friends, family, and colleagues about your business are incredibly valuable. Encourage these conversations by consistently delivering high-quality products or services and maintaining excellent customer service.

When you want to take your referral marketing strategies to the next level, consider how being part of a business growth community can build your network, grow your connections and ultimately, turn your business into a referral machine, while you are also supporting them.

For ten years, District32’s members have supported each other towards growth and success.  It’s the members who love to see each other succeed and consistently provide referrals to each other within the network that create such an amazing community.  If you want to know more, come join us at one of our many events in Perth or the Gold Coast, and discover the District32 difference. BOOK HERE