How many times have you asked friends or family about a good place to eat? Maybe you didn’t even ask your friends or family, but you relied on the reviews you saw online. The point is that referral programs sell successfully. That’s because a person is four times more likely to buy your product or service if you were referred to them by someone they know.
Additionally, once you get those referrals on board, they are generally better customers. In fact, a customer that was referred to you by a friend or acquaintance has a 16% higher lifetime value. This fact is true because the customer is more likely to be interested and find value in your products. Generally speaking, most people only make referrals if they know someone that would be interested.
Do you want to work less for your leads?
Do you want to have better-qualified leads? Wouldn’t you love to have these qualified leads convert more easily into closed deals? With the right customer referral program in place, all of this is possible! Here is how you can use this referral program to discover new qualified leads:
1. Lead by example
If you are going to ask others to refer you to their friends, you will want to show them how it’s done. To do this, evaluate your clients and try to determine whom you can match together. If you ask your team to do the same in their lives outside of work, you will find that you have interconnected networks that all share a referral mentality. Once everyone becomes used to referring people, it will be easier and natural for them to refer your services.
2. Ask, and You Shall Receive
Chances are, those that assume a referral program won’t work, have never given it a try. If you have never asked for referrals, it’s no wonder why you haven’t received any! Most people don’t think about referring you unless you ask. In today’s world, people don’t share things unless it’s a bad experience. If customers have a good experience, they don’t think to share unless you ask them to. Don’t be intimidated to let your clients know that you would like for them to refer your business to others if they know anyone who would be interested in your services.
Here is a quick tip: Ask for referrals in a face-to-face meeting. Asking your clients to refer you through an email or text message can come across unfavorably. Doing so in a face-to-face meeting shows that you are respectful and appreciative of their business and referral. As a result, you will see better leads come through from these types of references.
3. Show that you are appreciative
When someone says please and thank you, how much more accommodating are you to help someone that does this rather than someone who doesn’t say a word after you help them? If you are like most people, you are probably willing to help someone who shows they are appreciative of your help. A simple please and thank you goes a long way! It’s just a friendly, respectful gesture that lets others know that you sincerely do appreciate their help. As a result, you will see more leads come through your door.
4. Have the right tools
Having the tools set in place for a referral program is essential, and it will make all the difference in the success of the referral program. If you are offering rewards for referrals, you will want to have a tool such as Invitebox, which gives you a platform to distribute instant rewards for anyone participating in the offers. These tools will keep the program easy and organized so it’s a streamlined process for both you and your clients.
5. Help your clients help you
Perhaps the only negative thing people have to say about referral programs is that it takes up too much time. This negative experience is easily avoided with a quick and easy referral process. Once you ask people for referrals, help them understand how to complete the referral process. For instance, if you are using a platform, include email templates so that it’s quick and easy to access.
6. Reward referrals
When there are incentives involved, more people will be willing to refer your services. Whether you offer a small discount on their next purchase or reward them with something that has a small monetary value, most people will be glad to help. Combine these small rewards with a few please and thank you’s, and you will have quite a few referrals at your doorstep.
7. Why Have A Referral Program?
There are quite a few benefits of referral programs. For one, referrals are a cost-effective way to bring in new leads. If you choose to reward your references with a simple thank you, a referral program can cost you absolutely nothing. But even with a reward program in place, it can still bring in a ton of new leads at a low cost.
Also, when a lead results from a referral, you will notice that the sales process moves quicker and smoother. Remember, this lead was brought to you by someone they know, so you are not quite strangers. Because of this reference, clients are less hesitant and more willing to jump on board because they already have trust in you.
A referral program plus a traditional sales method? Incredible results!
Referral programs are great, but they can’t be the only source bringing in all the business you need to be successful. Combine a referral program with a powerful cold calling team and we can bet that you will have tons of new leads coming through your door each day!
We suggest for you to focus on creating this referral program and let Call Motivated Sellers handle your cold calling. Start of this new year on a good foot and get started with a robust sales strategy. Have the best of both worlds and let Call Motivated Sellers help you! What are you waiting for? Let’s get started!