The Power of Referrals

September 11, 2019

 

Let’s face it, referrals or word-of-mouth marketing is one of the most valuable resources of any business. The value of your customer is not in the purchase, the loyalty lies within the experience. What service did you provide that will not only keep them coming back, but to market on your behalf by telling their friends, family and business associates about your worth and why they should also invest in you.

 

In these interconnected days of social media and technology, how your customers feel about you and what they are prepared to tell others about you will influence your revenues and profits just as much. Businesses will go to considerable lengths to motivate their customers to double up as volunteer salespeople.

 

For instance, I was not happy with the service as compared to the cost of services through my cell phone carrier. I have been a loyal customer for more than 20 years. I called and explained that I could take my service elsewhere for a fraction of the cost. My carrier knew my value, not just in the amount I was paying every month, but in what I would tell others about the lengths they went through to keep me by showing me my value as a customer. They were right. That same day, I told at least three (3) people about the service my carrier provided, and at least one of them is strongly considering switching their service to my carrier. Referrals work, and they will either make or break your business. You are the difference maker. Let me show you how.

 

Align with the Customer’s Value

 

Happy customers make happy customers – plain and simple. Referral leads are not only easier to close but they help your business long-term. My cellular carrier measured my value before considering the worth in maintaining me as a client. They considered my referral value and my lifetime value with their company before deciding to keep me as a client. The key to maximizing the value of your customer base is to determine how much of each customer’s value stems from purchases and how much from referrals. When you align your business on the problems you're solving, marketing messages, sales messages and delivery messages are all aligned on the critical challenge that the solution solves. You’re then equipped to go after the right clients.

 

Implement Referral Tools

 

Many companies believe they must have a robust team managing a referral program, or some magical formula to talk to clients, or maybe more dedicated customers. The reality is if you have a tool that you use for your referral program you will have three (3) times the referral leads and three (3) times the conversions. Does your business have a referral program? If not, contact me so that we can begin building for your future.

 

 Capitalize on Positive Feedback

 

Referred customers are usually less price sensitive. Since they usually come to your business with a sense of trust and credibility, they can be sold at full price. Referral marketing is less expensive than other forms of acquisition and can help shorten your sales cycle due to better conversion rates. Customer referrals can be self-perpetuating and beget more customer referrals. As you convert more customers who have greater loyalty and satisfaction with your brand, they can potentially refer more potentially loyal and profitable customers to you.

 

Partner with a Content Writer and Strategist

 

The average customer engages with more than ten (10) pieces of content before making a purchasing decision. This means that before your existing leads closed into customers, they weren't being shy about consuming those resources you've worked hard to distribute. This places a profound emphasis on the importance of strategically distributing that content to ensure that it lands in the hands of qualified prospects. Considering your potential customers are already consuming your goods, adding an easy referral 'Share this with a Friend' link to your automated offer emails or on your thank you pages could help you achieve just that. Making it easy for your customers to pass along your resources to their qualified connections before they even close will help you always stay one step ahead of the game.

 

For more steps to use referrals and word-of-mouth marketing to your advantage, contact me. As your international business strategist and leadership coach, I am your greatest advantage.

 

So now, I ask you, who do you know that I should know? Please provide me their contact information or facilitate an introduction so that I can be of service to them and their business.

Customers have described it as an “MBA in a box” and a “roadmap” to guide you up the mountain to success. So, if you haven’t already, purchase your copy of my book, "Navigating the Entrepreneurial Journey.” Click HERE to purchase your personalized copy .

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