Referrals – What are they and why are they good for your business.
What are referrals?
Referrals are introductions to a potential client from someone who knows, likes and trusts you. They are one of the most effective ways to grow your business. They come with a high level of trust and credibility, and they can help you reach new customers who are more likely to convert. An example could be estate agent/conveyancer/mortgage broker/insurance provider.
In this blog, you’ll learn the importance of referrals, how to get more referrals, and how to use referrals to grow your business.
Why are referrals important?
There are several reasons why referrals are important for businesses.
- When someone refers a client or business contact to you it means that they believe your product or service will benefit their business contact or client. This level of trust can be more difficult to achieve through other marketing channels.
- Referrals are more likely to convert than other leads, you could call them very warm leads. Experience shows that leads that come from referrals are more likely to convert into customers than leads that come from other sources. This is because leads that come from referrals are already interested in your product or service, and they have been pre-qualified by someone they trust.
- Referrals can help you grow your business and target new sectors. Most businesses want to grow and one of the best ways of doing this is to use you network of contacts to help you. After all, people buy from people, so think about the business sectors you’d like to target and then consider who you might be able to ask for a referral.
Where to find referrals for your business?
There are a variety of people referrals to your business could come from;
- Current clients – these people are valuable to your business. They can testify to the quality of your work and should be more than happy to tell others about you. Don’t be afraid to ask your clients for referrals whilst you’re working with them. You never know who they might know, or be working with.
- Past clients – are often more than happy to refer business to you, they’ve already worked with you and can vouch for you. For this to work it’s important to keep in touch with them, so make sure that they’re on your newsletter list and make the effort to have a catch up call with them from time to time (you also need to do this to check for opportunities for them to buy from you again).
- Network – For this to work you need to build and maintain relationships with your business contacts. This is where regular catchup meetings come into play, it’s important to take the time to really get to know people and understand their business. You’ll learn the type of client they’re looking for and vice versa. Ideally you may even find that you share similar or the same target markets. You can then develop a referral partner relationship.
- Employees – They know your target market. They’re likely to have connections who are already interested in what you have to offer. This means that they’re more likely to be successful in referring potential customers to your business. They can help you build relationships with potential customers by introducing you to them and answering any questions they may have. When your employees refer potential customers to you, be sure to recognize and reward them. This will show them that you appreciate their help and that you’re committed to their success.
- Friends and Family – Depending on the nature of your business your friends and family can be good sources of potential leads. You might be an estate agent, accountant, builder or beautician for example, all of these types of businesses can benefit from referrals from friends and family.
How to get referrals?
- Ask for them. The most obvious way to get more referrals especially from customers, is to simply ask for them. Just ask them if they know anyone else who would be interested in your product or service.
- Make it easy for people to refer you. This could be, give them a leaflet which they can pass on to accompany the conversation, your business card, make sure they are clear on the benefits you bring.
- The arrangement when you receive a referral will depend on your business, some will involve a commission, or maybe a freebie, some will be nothing, the referral is just because it is the right thing to do.
- Thank people for referrals. When someone refers a new customer to you, be sure to thank them for their referral. This shows them that you appreciate them and you are grateful for their help in growing your business. Also, let them know how the conversation goes.
- Provide excellent customer service. This means going above and beyond to meet needs and expectations. When you provide excellent customer service, your clients are more likely to be happy to recommend you to others. They might also be prepared to leave you a testimonial that you can use on your website for social media.
- If you do work with a referral partner be sure that you’re both clear on the arrangement between you. When referring business to your partner make sure that their iis a real need for their product or service.
- It is important to track your referrals so that you can see the effectiveness of your referral programme. This will help you determine which marketing channels are generating the most leads and which incentives are working best.
In conclusion, referrals are a valuable source of new business for any business. As a business coach I’m here to help with all aspects of running your business. Whether you need a listening ear or want advice on finding a referral partner booking a 121 with me is the first step.
So what are you waiting for click here to Book a Free 1 Hour Coaching Session and let’s get you on the right track.
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