Grow Your Business with Referrals

Growing a business is a constant cycle for any business owner, it is the lifeblood which determines growth, expansion, increased revenues and customers. In fact, one of the biggest concerns for almost every business is “business growth”. Although there are many ways that a business can experience growth, one major way is through customer referrals.

Customer referrals is a key component that any start-up or small business may use to help gain customers, it may also be done at little or no cost. Asking for referrals to a business owner or a salesperson may seem to them as if they are desperate for business which is why many people struggle asking customers for referrals. If you have provided a great service or product to a customer and they are satisfied then that particular customer would have no problem referring a family member, coworker or friend to you. You never know what could become of a situation or opportunity unless you “ask”.

Ask yourself “Have I ever provided a business with a referral”?, “Why did I provide that referral”?, “What was special about the business that made me provide the referral”? Think about your answers to these questions and make sure that your business are meeting or exceeding them. Therefore, if you answered, I provided a referral because I really enjoyed the interaction with the business owner because he/she was friendly and helpful, then you should make sure that you are always friendly and helpful in the interactions with your customers.

Providing customers with incentives 

Many businesses have become very successful due to their ability to create and maintain a great customer referral program. Offering your customers with incentives to provide referrals to your business may help encourage them to tell people about your product or service. Incentives act as an motivational factor for many people because it provides a value-add or benefit to them. An incentive doesn’t necessarily have to be of monetary value, it could be;

A free service or product provided by you:

  • Credit towards a future purchase
  • Recognition of some type
  • Vouchers
  • Rebates etc.

Getting started 

Start creating your customer referral program by brainstorming ideas with your team. Find out which incentives would be beneficial for your customers but at a low cost for your business. Once you have determined the incentives, you will then need to add the referral component to your sales process. The referral component is usually the last part of the customer interaction. Asking a customer for a referral before you do business with them will not make any sense because they haven’t experienced the entire sales process with you first. Once a customer is comfortable with you and you have satisfied their needs and wants then that will be great time to ask for referrals and explain the incentive program to them.

Things to know

  • You do not necessarily need to offer an incentive in order to receive referrals from customers, however incentives may enhance the number of referrals you receive. It is ok to let your product, service and customer interaction do the work for you. If a customer is happy with your service they will be more likely to provide a referral.
  • Referral programs should not be your only means of growing your business. You should also use other business growth strategies in order to grow your business.
  • Don’t be afraid to ask customers for referrals. You will be surprised at the power in asking anyone for something.
  • Referrals may also come from people other than customers. Referrals may also come from your business vendors, strategic partners, family members and friends.

Customer referrals may drive stunning profits for your business so start today and implement or improve your customer referral program.

Comments are closed.