The Power Of Referrals
In this day and age, consumers are constantly bombarded with advertisements in the streets, on television, and on their smartphones too. Businesses understand it is becoming increasingly difficult to capture the attention of consumers and build trust through mass emails and cold-calls.
Thankfully, there is a way to combat the struggle of gaining consumers’ trust without breaking the bank: a referral program.
Thankfully, there is a way to combat the struggle of gaining consumers’ trust without breaking the bank: a referral program.
Whether you keep your marketing efforts in- house or outsource them to a marketing agency, setting up a referral program can help your business track down promising leads and close more sales.
Is a referral program really worth the trouble? According to a recent study completed by world-renowned sales trainer Tom Hopkins, referred leads are 6 times more likely to close than non-qualified leads (cold calls, purchased email lists, etc.). Not to mention, a referral program costs nothing to set-up, and is therefore self-sustaining. The only cost incurred from a referral program comes once a new customer agrees to do business. This is not worrisome because the cost is covered by the acquisition of that new customer.
Referred leads experience a significantly higher rate of return because the prospective customers are receiving advice from someone they trust. Naturally, people take heed of the advice given by those they trust. Your business appears more credible to prospects that are in need of your good or service.
Once your business begins accumulating referred customers, it becomes easier to increase the number of referred customers. Customers who are referred are more likely to refer others. Of course, that doesn’t mean that you can quit seeking out referrals. With that said, here are a few tips for seeking out referrals:
- Request a referral at the end of an elevator pitch
- When a customer thanks or compliments you, ask
- If a contract is involved, add referrals to the conditions
Written by Tyler Burch Intern at Marketing Eye Atlanta
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Tamie Ruhl
20 Jun 2016You have a very nice blog, i will share it,.. keep posting
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