Image Michelle_words Referrals Are Gold

Referrals are gold!

Referrals are gold and in business, there are generally two types of referrals. One is formal and the other informal.

The informal referral is golden as it is 100% authentic.

    No money changes hand and no coupons are sent out.

The referral comes as a result of good service, quality product, personal experience and a willingness to assist.

4 Reasons Why Referrals are Gold

  1. Customer acquisition costs are a bare minimum.

Your happy customers are doing your marketing for you.

Of course, this only happens if you give good service, and are attentive to your customers’ needs.

  1. Customer retention rate is higher.

Think about what it costs to gain a customer and it immediately makes great business sense to do everything possible to retain them.

When people are happy with your services, they are most likely to keep doing business with you.

  1. The market place is generally crowded so it’s hard to be noticed.

This makes getting your message to stand out from the crowd difficult. Investing in advertising is one way to get noticed, another way is to build a referral network.

We listen to people who we know and trust, hence word of mouth referral is so valuable.

  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.

Making the Ask

Knowing when and how to spot a potential referral opportunity is a good way to kick-start your referral system into gear.

However, unless you specifically ASK for a referral, it may not be made. People are happy to help when asked, and if you don’t make the ask, they simply may not think about sending more business your way.

When a happy, satisfied customer comes along and gives good feedback, grab the opportunity to ask them to spread the good about your business.

Are you harnessing the power of referrals? It’s never too late to start and if you need some help framing the ask reach out to us in the comments.

Fly like a dragon!

Dragon head image

Michelle

PS Enjoyed this article? Sign up for my newsletter every Wednesday – direct to your Inbox – to help you connect, convert and sell!




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, 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.

Leave a Reply

Your email address will not be published. Required fields are marked *