Creating Business Growth

The 4 Top Reasons Referrals Are Essential To Your Business

Referrals are a great source of business and despite the deluge of social media advertising some traditional methods still very much have a place in today’s business world.

4 Reasons referrals are essential

  1. Customer acquisition costs are a bare minimum.

Your happy customers are doing the marketing for you. Of course, this only happens if you give good service and are attentive to your customers’ needs. This means going above and beyond what is expected.

Satisfied customers are more than likely to bring in more customers to your business.

  1. Customer retention rate is higher.

If people are happy with your services, they are most likely to keep doing business with you. It is important to maintain contact and listen to customer feedback.

  1. The market place is generally crowded. This makes getting your message to stand out from the crowd difficult.
  1. Conversion rates are higher. A prospect introduced to your business by someone they trust is far more likely to convert into a new client/customer.

Knowing when and how to spot a potential referral opportunity is a good way to kick-start your referral system into gear. When a happy, satisfied customer comes along and gives good feedback, grab the opportunity to ask the customer to spread the good about your business.

Conducting after-sale interactions lets your customers know they are valued and not everything ends immediately after the sale/job is done.

How Referrals Work

When was the last time you went to a restaurant because a friend kept on raving how great the food or the service was?

I bet it was pretty recently. In fact, just today, I went to brunch at a new place because a couple of friends recommended it.

Have you ever asked a family member/friend to recommend a reliable plumber/electrician to take care of your dripping taps or broken fans?

I do this on a regular basis because good tradies are hard to find! Similarly, doctors, dentists, web designers, accountants and a myriad of other professionals.

If you’re like me, then you probably like to give your business to, and place your trust in, someone that comes recommended by somebody you know and trust.

If you haven’t got a system in place, it’s not too late to start! When you keep your eyes open it’s surprising at how easy it really is.

I’d love you to share your feedback on how you handle referrals and what systems you are using.

Michelle

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Michelle Hanton is a multi-award winning bespoke business strategist, working internationally as a consultant, coach, speaker and writer. She has a keen interest in the not-for-profit sector and is the former CEO of Lifeline Top End, and founder of Dragons Abreast Australia, a national charity dedicated to the promotion of breast cancer awareness.

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