Our Top 3 Tips For Referrals

As a business owner, you probably already understand the importance of lead generation. But do you know just how invaluable your existing clients are when you are hoping to attract new customers? Customer referrals are one of the most cost-effective sources of new business, but how do you get clients to recommend your company to their peers?

Referral marketing works because people have confidence in direct recommendations from someone they know. If you are doing renovations on your house and your friend gives a glowing review of their contractor, would you be more likely to book that one? Client referrals not only build trust, credibility, and reach more people, but they also give potential customers an excellent first impression (which can obviously lead to more sales!)

It's great if these referrals come from organic conversations, but that can be inconsistent. Having organized and user-friendly customer referral programs can help you get lots of quality referrals.

Here are our top 3 tips for how to get business referrals:

1. Provide exceptional Customer Service

This may seem obvious, but excellent customer experience will naturally make people want to talk about your business. We're not just talking about doing your job well, but really going above and beyond to wow them! Doing little things to show existing customers that you care and make them feel appreciated will go a long way.

Exceeding expectations doesn’t have to be time consuming or break the bank. This can include gestures like a welcome gift, reaching out if they have a launch, sending a note to celebrate their successes, continuing to provide valuable content using a blog or newsletter, giving them a shoutout on social media or simply checking in from time to time. 

By investing in these relationships, you can build long-term customer loyalty, keep your brand fresh in their mind and generate positive word-of-mouth. Customers want to feel valued and respected; a few extra minutes and a little care will nurture those connections and build a good reputation for your brand.

2. Ask them & Make it easy

Be proactive and let your customers know that you're accepting new clients. Provide specific information on who would be a good fit for your services and don’t assume that your clients know everything you offer. For example, if a client uses your personal training services, they may have no idea that you also provide personalized meal plans. Make sure clients know you appreciate their business and that referrals are an important part of growing your business. You can make a direct request by asking if they know anyone who could benefit from your products or services. 

The key to this is providing clear instructions and making it as effortless as possible. This can include providing referral cards, creating a customer referral program with online forms, or offering pre-written referral email templates. Simplifying the client referral process and being clear about who you are trying to attract will result in not only more referrals, but referrals that are more likely to convert into sales.

It’s also important to ask for referrals at the right time. Your client should have already had multiple positive interactions but don't wait too long or they'll start to forget details. Don’t bury it in the middle of a logistics email or tagged on the end of a final invoice either (which they may forward to accounting without even looking!) where it’s easy to gloss over or miss entirely. Ask once you’re seeing positive results or, even better, after the client expresses their satisfaction.

3. Give a referral bonus

Sometimes people need a little extra motivation to take time out of their busy schedule to make a referral. A good way to show your clients that you value their opinion is by offering an incentive. This can be in the form of discounts, special offers, exclusive access, or rewards programs. By providing an extra benefit to both the referring client and the new customer, you create incentive for your clients to actively promote your business. 

Customer referrals are a strong asset to your business and show potential clients that others love your business enough to share their experience. By providing excellent customer service, asking clients directly, and providing incentives like a customer loyalty program, your referrals will increase in no time. And, of course, you can't forget to thank your clients for going out of their way to do you a favour. When a client knows you’re grateful for their effort, they’ll be more likely to refer again!