How a Referral Program Can Exponentially Grow Your Business

When your clients, current and past, have had an exceptional experience with you they are more than happy to give you referrals, and most of the time without you even having to ask! Great service and products are easily referred...it’s that simple. This word-of-mouth process can create exponential growth for your business. One client alone can lead to 10. 

Below are 7 reasons that a great referral system can be your biggest source of lead generation.

• Free-minimal cost - Referrals are essentially free to acquire. Although it is good practice, especially with a high-ticket item or service, that you send a nice gift to the person who referred them.

• Trust -You are trusted right from the start. When the new client enters your business as a referral of people you have already served, they feel as though they already know, like and trust you since the person who referred them to you has already placed great trust in you.

• Easier to Close - Referred clients close on average at 50-75%! The sales process is much quicker because they come to you warmed up and ready to do business with you. 

• Very Few Pricing Objections - Your price is usually less of an issue as people who are referred are willing to pay a little more when you’ve been recommended as a business who gets results or provides a high-quality product and great customer service. 

• Higher Sales - Your sales are often higher with a referred customer. They don’t need to do a trial or test run.

• Ideal Clients - Your new customers and clients are more likely to follow your suggestions because they know the person who referred them had a great experience following your suggestions. 

• Even More Referrals - And so the cycle continues, assuming their experience was exceptional also. A customer obtained through a referral is much more likely to give referrals. This is how the explosion of business happens.

Now that you understand the various advantages of how your business can exponentially grow just on referrals alone, it’s a really good idea to have a referral program in place and make sure all customers and clients, past and present, know about the program. For example, you can offer discounted services, free products, gift cards, etc.

Have a referral program email sequence in place which will help you stay top of mind with your current and past clients. Another great idea is placing a simple statement at the bottom of all emails, invoices, your website reminding them that referrals are the greatest thank you that you can receive. 

Written By The Strategic Advisor Board - Kara James
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