How to Harness the Power of Customer Referrals
What makes you visit a new restaurant? The ambience? The lighting? Or the food? Chances are, you probably read a review online or in the newspaper, before you decide whether it’s worth your time. That is the power of a recommendation.
Social proof or social acceptance is a powerful thing to have- especially when it comes to your business. If you can get existing customers to give their stamp of approval, you can overcome skepticism from other prospective customers! When your existing customers let their peers know that your product offers real value, your business will get a major boost. It costs much less to acquire a customer through referrals than it does to hunt for new ones. Some customers will automatically recommend your business to their friends, while others may need a gentle nudge.
You scratch my back, I scratch yours. Sure, there will be some customers who will be happy to help without getting anything in return, but if someone takes the trouble to bring you more business, it is nice to say thank you. Give people a reason to refer their friends. Have referral contests and offer a prize, discount, or gift to the person who brings in the maximum referrals over a given time period. Alternatively, offer a discount code to online shoppers the moment their friends make a purchase. You can even start an affiliate-marketing program online, giving your supporters a commission for each sale they facilitate.
KEEP IT SIMPLE
If you want people to refer your business, then you need to make it easy for them to do so! Establish a simple system where clients can pass on the details of a friend or relative interested in your products. Create a page on your website or a message board that clients can access at all times. Even better, extend it to your corporate blog or social media page- any space where your clients may ‘hang out.’ If you openly ask for referrals and make it easy to refer a friend, you will get more business coming your way.
BE TRUE TO YOURSELF AND YOUR BUSINESS
When asking for referrals, be honest. If you are going through a lean period where business is slow, be honest and tell your customers that you would be grateful if they were to put in a word with their friends. It is ok to ask for help. Your customers will appreciate you and your efforts that much more.
Are you ready to launch your referral program now?