3 Powerful Tips for Getting More Referrals

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According to a recent study by Constant Contact, 82% of small businesses say that referrals lead new shoppers to their business.

The reason why referrals are so effective is that they come from a known and trusted third party as opposed to coming from some other more distant or more biased source.  For example, if a good friend or a family member recommends a particular physician, isn’t it more likely that you would choose this doctor over one that you have only heard about as advertised over the radio? The answer is usually yes, as referrals are generally recognized as the most persuasive form of marketing.

What are some ways in which you can make sure to get the referrals you need to boost your business?

When the time is right – ask.  When you have particularly pleased a customer, take the opportunity to ask him or her to mention your company’s name to friends.  The positive experience your customer has had with you will spread to those they contact.  If the client has a specific story to tell about their dealings with your business, the referral will be that much more memorable and may spread to many potential customers all at once. You may also wish to ask for a quote or case study of your customer’s experience, as, if they feel comfortable sharing it, having these kinds of testimonials can make a very large difference.

Reward referrals.  Provide incentives for your referring customers.  For example, you may offer special discounts or rewards points if a new sale comes as a result of the referral.  The offer of rewards will serve to motivate your customers to become active in seeking out those they can refer to your company. The NFIB suggests a few different types of reward for your referrals, from specialized discounts to cash. Depending on the average spending of a new customer, you can decide what level of reward to offer.

Promote referrals on your Facebook page and other Social Media.  Offering a percentage off of a sale for “liking” your Facebook page is an effective way to get referrals via the social media site.  Remember that one “like” on Facebook shares your business brand, and the satisfaction of your customer, with all of his or her friends. Spreading your referral message over a wider range of social media allows your customers to easily share your promotion and go after your rewards.

Photo Credit to Afagen on Flickr.


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