Why A Referral Is So Valuable
We spend a lot of time and money in marketing our businesses to attract a new customer, but when an existing customer gives a referral to a new prospective customer then you have almost always been pre-qualified; thus saving you substantially on sourcing that new customer.
There are two golden rules to adhere to when receiving that referral:
1. Never assume the new prospective customers knows all about your business/services. Your existing customer may have only used one aspect of your business.
2. Don’t forget to acknowledge and thank the existing customer that gave you the referral and keep them informed. We all like a little appreciation.
Receiving a referral from an existing customer is the ultimate reward, the result of you meeting your existing customers’ needs/wants perhaps even exceeding them and a clear indication that you really are worthy of being talked about for all the right reasons. So well done and cherish that referral.
There are so many business referral organisations around whether it’s BNI, Chamber of Commerce or A specific Business Referral Group this is the essence of the chapters.
It costs 7 times more to source a new client whereas a referral is a recommendation from a satisfied client. So how do you encourage referrals? There are a couple of incentives you could apply to your business. Why not have a chat and let’s talk about your marketing to get your satisfied clients being part of your sales team.