Personal Referrals

It is generally acknowledged that a personal referral is one of the most successful routes to business growth. You possibly already acquire many new customers this way, so you should seriously consider making this a key aspect of your marketing strategy.

Why? Because it’s low cost, people prefer to buy from a recommendation and the conversion rate is usually higher.

Happy customers are a valuable resource and should be encouraged to provide referrals but remember to thank them every time, perhaps with a small personal gift or other incentive. Take advantage of social media and ask satisfied customers to post positive reviews and testimonials, tapping into their social networks to enhance awareness of your product or service.

With all referrals it is critical to ensure the value and effort invested creates positive results, encourage sources that you trust. As with every other area of business the Pareto principle applies, you can expect 80% of new referred business to come from just 20% of your customers. Therefore you should determine your top 20% potential referral sources and focus your time, effort and investment on them.

Are your customers members of a golf club or a special interest group or in a business network? These are key pieces of information that are invaluable.

If you have a satisfied customer don’t hesitate to ask for referrals but do not forget to follow through and let them know the result. As you develop your referral network, it is imperative you continue to keep in touch, making them feel an important part of your business but be sure to seek their permission to do so. Perhaps a regular newsletter or snippet of valuable information, if appropriate offer an “exclusive” sales incentive.

Critically, be aware of over communication this will have a negative impact.