7 Steps to Get More Customer Referrals

customer-referral-program

Customer referrals are by far the most effective and cost-effective way to drive new business. In fact, referral leads convert 30% better than any other marketing channels (R&G Technologies).

Yet, only 29% of sales people actually ask for referrals (Texas Tech), and only 22% of companies have tools in place to help them scale their referral programs (Heinz Marketing).

As a small business, VIP Crowd relies heavily on referrals from our network. Needless to say, we’ve gotten pretty darn good at it. So, we wanted to share some simple steps for how you can get more customer referrals.

Quick Steps to Getting more Customer Referrals

1. Offer memorable service.

Plain and simple, there are no referrals without happy customers.

2. Identify your VIPs.

To get more referrals you need to identify and focus on the people who are most likely to give you referrals. These are the customers who you’ve built personal relationships with, who can vouch for your product/service, and who are already singing your praises.

3. Stay top of mind.

It’s not rocket science. Keeping in touch with your customers will keep you at the top of their mind so that when an opportunity does arise, they will think of you.

4. Stop worrying about when to ask.

While timing is key, the “right” time is going to vary by customer. The right time to ask a customer for a referral is when they’re happy. In fact, after a positive experience, 83% of customers would provide a referral (Texas Tech).

5. Be confident and direct.

Asking for a referral is only awkward if you make it awkward. Generally speaking, people want to help each other out if they are able to.

6. Focus on the value.

It should be safe to assume that you have provided value in some way to the customers you’re approaching about referrals. Remind them of that value when asking for a referral, and tell them you’d love to help others achieve similar results.

7. Offer incentives.

Show your appreciation by offering incentives for each person your customer refers. At VIP Crowd, we offer entries into our weekly “Loneliest Number” game, where we give away prizes and donations to charity. We also offer points which can be used towards gift cards, tech products, and donations to charity.

Bonus: Invest in customer referral technology.

When customer referral technology is used, companies are 3x more likely to accelerate referral generation and conversion (Heinz Marketing). Find a customer referral technology solution that helps you interact with customers regularly, makes giving referrals quick and easy, and manages the rewards for you.

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