Word of mouth recommendation is an excellent way to grow a business, but in order to generate referrals from satisfied customers, you need to take positive steps to maximize the outcome.
Happy customers don't automatically go round raving about your business. They have other things on their minds.
So what can be done about it?
First, you need to recognize the value of referral marketing. It's a most cost effective and painless way to generate referrals. And powerful because it generates quality and more targeted leads. Your customers would know which of their friends are more likely to be interested in your products. And when they do buy, they are more likely to buy in larger volume because they buy with confidence.
Even when business owners know this, many are reluctant to use it mainly out of fear. The fear of being seen as desperate and the fear of rejection.
What to do to get their cooperation.
First, you need to understand their motivation. They want to help solve the problems of their friends. You need to demonstrate you have the right product to solve their problems.
To generate referrals from satisfied customers consistently you need to put in place a proactive referral system and procedures. When you ask them for referrals, they will mentally ask " What's in it for me?"
So you need to give them something in return for their recommendations.
- Get testimonials from your most estatic customers and referrals from the top 20% of your repeat customers. Asking for referrals from first buyers or at the point of purchase may be seen as too aggressive.
- Give them an incentive to recommend your products. It could be a discount, additional product or service, cards,coupons,rewards, references.
- Give a Gift. Provide gift certificates or samples for the referrars to give away to prospects.
- Look after your existing customers. Keep in touch with them through newsletters, giving them updates. This makes it easy for them to learn more about you and your products. They are more likely to recommend someone they are familiar with.
- When you get referrals, follow up promptly but do not hound them. When referrars get good feedback from their friends, they are more likely to continue helping get more customers.
Go back to website marketing ideas
How to Automate Your Follow-ups.
How to Generate Quality Leads Using Social Networks
Leave generate referrals page to read our blog
