5 Tips to Grow Your Customer-base Through Referrals

Referral, Customers

If you are truly giving quality services to your customers, then be bold to ask them for referrals.

This is because there are no better salespeople than a satisfied customer.

Little wonder that 90% of customers are influenced by positive reviews when buying a product.

You know that feeling of fulfilment that comes from a purchase experience.

It starts the moment the transaction occurred. You most likely got very comfortable with the smiles and the courteous interaction with the contact person.

Or…

Maybe it was the seamless process of making the purchase online without a single glitch.  

You would always walk away with the confidence that the product would deliver what was promised.

Everyone is someone else’s customer. Being mindful on how you would want to be treated will go a long way in helping you deliver a great experience at all times –  to your customers.

I have referred a number of parents to the Pre-school my children attended because of the excellent care and attention my wife and I received from the school management.

It did not take long to notice the passionate commitment by the team. They were all out ensuring every child got the required training and by implication, every parent got value for their money. It was therefore easy for us to become an advocate for the school.

It is more compelling when your customers inform their friends about your product. They have done the heavy lifting for you. It is an effective marketing strategy.

 

Who Is a Satisfied Customer?

Remember my example of the Pre-school?

That was satisfaction.

It was easy to share our experience with friends – likely customers. It was an indirect way of endorsing the school. This was very helpful in the decision-making process. It gave them the confidence to proceed with our recommendation. 

Keeping your brand promise is the beginning of customer satisfaction.  Customers need to be happy with the expected solution from your product.

When your customers do the “talking”- about your product, it fast-track the sales conversion process. Achieving consistent customer satisfaction brings a lot of merit to your service offerings.

The 21st-century customer is not only impressed with the look and feel of your product but they are keen on receiving high-level satisfaction. It’s a top priority in their scale of preference.

Gartner had predicted  that 89% of businesses are expected to compete mainly on customer experience

Customer satisfaction helps improve customer retention and according to smallbiztrends.com 82% of companies agree that retention is cheaper to execute than acquisition.

Every business desires to grow its customer base consistently and leveraging on referrals from existing customers makes this possible.

By the way…

What Is Referral Marketing?

You have a right to ask for referrals if you have genuinely added value to your customers.

If your product offering stays true to your brand promise then your ‘bragging rights’ are fully endorsed.

It is true that human nature reciprocates the gesture of value addition but most times customers would remain passive until you deliberately request for referrals.  

Therefore, referral Marketing takes place when a business leverages it’s existing customers to create awareness about its offerings with the intent of growing its customer base. This can be incentive induced   It is also known as word-of-mouth marketing

Do we have organisations that have successfully leveraged on referral marketing? Absolutely!

Smart organisations have continued to leverage on growing their customer -base through referrals. Here are some case studies we can w Airbnb is a good example of an organisation that has continued to leverage on referral

 

Let’s take a look at a few tips that would help grow your customer base through referral

 

1. Initiate the request

It may never cross their minds until you initiate it or they may think you have your strategy all set and you know how to get by with growing your customer base. The fact is that you can not leave it to chance.

To generate new leads on a consistent basis, sales referrals is a viable option.

Customers are less apprehensive when a product is referred to them by a friend or colleague.

 

 

2. Connect with your customers

This is further validated by research conducted by Nielson company where they found out that 92% of people rely on the opinion of family and friends to make a buying decision.

On a personal level, I am more comfortable doing business with someone that was referred to me than someone that I met out of the blues.

 

The interaction process is faster when the introduction comes through a known contact.

 

3. Turn them into Advocates

When a customer refers others to your brand, they are enhancing the rate at which the Know, Like and Trust (KLT) factors will be communicated to others.

They become an advocate for others to understand your value proposition.

In the true sense of the word, your customers are a huge asset to the success of your business.

 

 

4. Set  referrals generation target

Make it part of your business strategy: There should be specific goals on the number of referrals you hope to generate from your customers on a regular basis.

Include the request in your conversation as you interact with them.

While they are complimenting you for the fabulous service, thank them for the feedback and put forward your request for other customers.

 

5. Create shareable links for referrals

As you build your mailing list include a link that can be forwarded to others and remind them to forward it to those that might be interested in your value proposition.

Be creative based on your business model but by all means leverage on your existing customers.

 

Conclusion

Don’t be shy….just ask!

What’s your take on this?


 

 

 

 

 

 

 

 

Leave a Reply

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