Positive word of mouth is a resource that businesses rely on the most when it comes to gaining new customers or clients. Referrals are where satisfied customers share their opinion about working with your company with others who may need your services. Word-of-mouth referrals see 5x the customer increase than a paid marketing ad. If your business is looking to gain more customer referrals, there are some referral strategies that you can implement.
1- Offer Incentives
Getting referrals is made easier when you give your customers a little something for doing it. You will need to determine your budget for the incentives and determine if you will offer rewards for both new customers and the ones that referred them. For example, you can offer 20% off for anyone that refers a friend or family member or give the existing customer $20 once their referral makes a purchase.
Incentives are a great way to make it worth it for your customers to share their love for your customers. People love to get free gifts or discounts, especially if it is with a company they enjoy purchasing from or working with.
2- Communicate Values
When a customer feels connected to your business or knows that they can trust that your product or service is high quality, they are more likely to think of you first. Having your company’s values clearly stated in multiple places and applying your values to your products will help customers feel connected to you.
Customers that resonated with you will share you with others that will too. Many consumers want the best price with quality products. If you list ingredients that are healthy, how you are giving back, how your product solves a common problem, or how you treat your customers in your marketing, you will have one of the best referral strategies.
3- Improve Customer Support
Offering customer support not only makes the customer feel heard, but it also helps you sell more products as customers will have their doubts squashed and questions answered. Oftentimes a consumer doesn’t work with a company because they are unsure how others feel or what product will be best for them. This is where referrals work two-fold because you can share referrals as you perform customer support.
Referral strategies don’t always have to be salesey. They can be as simple as a review or sharing other questions that have been answered by your support team. Customers will know that your business provides a great product or service, and makes it right if something is not as promised.
4- Relationships Equal Referrals
Are there customers that keep coming back to you? Do you have a good relationship with these customers? If not, you may be missing out on referrals. Clear communication not only helps customers know what they are getting from your company, but it helps to build rapport with future customers and helps them become loyal ones. Loyal customers will often be willing to give you a referral if you ask for one. Especially if they have been coming to your business for years, they may enjoy an incentive like the ones mentioned above, receiving a free product, and just a thank you for being a loyal customer.
Ask this customer to share their thoughts on social media and use this as one of your referral strategies. Building relationships with your customers helps people to know you care about them, and not just about making money.
5- Just Ask
How will you know the answer if you don’t ask? Maybe your customers haven’t thought about referring people to your business, or just forgot. If your business uses email or text reminders, try sending a survey or referral link after they make a purchase. This is the place to put your incentive (refer a friend now and receive a free product and your referral will receive 20% off their first order) so they know that it is a win-win situation for everyone.
If it is not in the budget to offer incentives, you can still ask clients to refer you. Post to your social media and ask those who have the time to refer you to family and friends, you will be pleasantly surprised how many customers will refer you without anything in return.
Our team at Wasatch ActionCOACH helps your business with more than just referral strategies. We can help improve multiple aspects of your marketing, leadership, management, and sales. Each of our business coaches has experience in many aspects of business that can help you take the next step toward your goals.