What Referral Systems Can You Use in 2020?
Referral systems are one of the most important customer marketing strategies you can trust to grow your business. They are a lot more germane than you may think.
According to the New York Times, 65% of all business comes from referrals. In other words, on average, more than 70% of customers make purchases because someone they know recommended a product or service. (https://www.marketing-schools.org/types-of-marketing/referral-marketing.html)
In this post, we’ll tell you all there’s to know about referral systems and how you can leverage them to scale your business in 2020.
What is Referral Marketing?
Referral marketing, also known as word-of-mouth marketing, is a strategy or campaign that involves increasing awareness of a service or product through a business’ existing customers (referrals).
Word-of-mouth campaign has gone beyond walking up to someone on the street or waiting for a perfect moment.
Online review sites, including Google, Trustpilot, and even YouTube, can be leveraged efficiently to engage potential customers – courtesy of the internet.
Asking your existing customers for referrals put your business in front of a network of potential customers
No doubt, referrals can be magic to your business. However, it’s important to simply ask your existing customers. An assumption that they will be putting your product or service to the world may be a costly one.
While your goal is to satisfy your customers and get the referrals you want, here are some tips on building a winning referral system:
3 Tips on Building a Winning Referral Systems
Firstly, Focus on Relationship
One of the top tips of a winning referral system is building a quality relationship. You must be actively involved and focused on building relationships with people – both existing customers and potential customers. How can you do that?
- Dedicate time, effort, and be deliberate
- Over-deliver and exceed customer expectations. Be responsive and prompt in resolving customer problems and inquiries.
- Show gratitude always.
Make sure the timing is right
The next step is observing perfect timing. If you ask your customer for a referral at a bad time, there’s a possibility that you’ll be ignored. You must be sure to have met their expectations or even over-deliver. This sets you on the pace and can then leverage that satisfaction to getting a referred customer.
Ask for Online Reviews or Testimonials
Asking for online reviews or testimonials plays a very important scheme in building a winning referral system. These days, a lot of folks, including myself, rely on reviews on Google and other trusted sites to decide if to buy a service or not.
For example, if you need to visit the nearest cinema and wants to stay comfortable, you’ll likely research and see how well each cinema is and how well users rate their services are. That’s the first thing you’ll care enough to do! Likewise, potential customers will check out your reviews and compare your services to your competitors’.
So, don’t take your chances. ASK your satisfied customers to leave a review on trusted sites like Google or Trustpilot.
3 Benefits of Referral Systems
Referral system can be beneficial to your business in the following ways:
- Requires little or no expense at all
Among other marketing tools, referral systems are the most frugal source of getting new customers. Meaning, when comparing the direct cost to other marketing strategies such as online advertising or using posters, it’s the least expensive. In addition to this, here are two additional reasons leveraging referral systems in 2020 is worthwhile
- Increase your credibility and trust
- Increased Business Productivity and a Faster Closing rate
Studies show that people are 4x more likely to buy a product or service when referred by a friend. Since you may not need to push convincing people (potential customers) referred by an existing one, they rely on the trust of satisfied customers (referrals). Ultimately, leading to a faster closing rate and increased business productivity.
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