Marketing and, preferably, digital marketing is right at their peak for the last few years. Suppose you are all sorted with your SEO, PPC, and other digital marketing strategies and still not getting higher conversion rates. In that case, you might need to rethink or reconsider tour strategies. Certainly not taking a wild guess, but have you considered asking for referrals from your clients post-completion or delivery? If not, then you are surely missing out on a lot of potential growth! Let's reiterate the old quote by Nora Roberts. “If you don't ask, the answer will always be a no.”
Now things might get confusing, but hold on. Let me explain it in a better manner.
Why are referrals necessary for your business?
Someone would be more interested in doing business with people they know or are familiar with instead of total strangers. And according to human psychology, people are more inclined to trust their friends, families, and other close people for any product or idea. Therefore, gaining referrals has a significant part in attracting new and higher leads. Also, convert the leads to confirmed clients. Isn't that the prime focus in the world of business?
Referral marketing, most commonly called the “Word of mouth marketing,” is one of the crucial strategies that business owners often ignore for various reasons. A satisfied referral could be in the form of an experience or a four to five-star review from a past or current client featuring how you have helped them.
According to a survey, more than 87% of the customers rely on online reviews, even local businesses.
And if you are still stuck with the old traditional marketing methods then,
In a famous publication, Katz and Lazarsfeld stated that the word of mouth or the referral marketing strategy is four times more powerful than personal selling and even seven times more potent than print advertisements!
On average, dropbox grew around 39000% within 15 months from 2008 to 2010, just through referral marketing, which is enormous.
According to the study of McKinsey Institute:
What are the five proven strategies for gaining more referrals from customers?
When you already know how important referrals are for your overall business, let's check out how you can gain more referrals for your business.
Even though you can sit back and chill while a few of your clients might give a few referrals here and there, but that is undoubtedly not the most effective. You need to take things seriously and have a better strategic approach.
Let's check out five effective strategies that can amplify your referral game and attract more customers.
Well, communication is the key in almost every aspect of life and precisely within referral marketing too. When you ask clients directly for referrals, you put their reputation at risk. Also, if you indicate that you rely on referral marketing just for the sake of gaining more customers, this might sound a bit selfish and centered.
You can subtly give the hints that you would want them to refer you in such cases. Give your most reliable and the best customers a higher preference since this is exactly when you need them the most. Ask them for advice or suggestions. This way, they will have a clear impression that your main focus is on improving the overall business and customer satisfaction. Make them feel involved in your business and build partnerships with them. Subtly nudge them and inform them that you can help their colleagues, friends, and other close people in similar aspects and problems. This will give you an edge since this strategy is significantly different from the standard methods.
And even if you still do not get a referral here(it happens rarely), you have nothing to lose here! It is a win-win situation here.
You have a better relationship with this client, and they will have you in their mind the next time they would be struggling with a similar problem!
Focus on newer clients
Yes. The old and regular customers are always evergreen, but you cannot limit your strategy to them. You need to keep your options every time. Therefore, the next best option is to try for other new clients. Now when you have a new customer, and you have delivered a mind-blowing output that is helpful to them, chances are you are going to get a referral from them. Your client will have a new impression and will be excited to share it with you. And, they will spread the gospel eventually via referrals to their close ones.
Reward your clients
Just asking for referrals includes no benefit for them. Then why will they make an effort if it has no advantages for them? Well, individual gifts, incentives, and rewards can be a great way to lure your customers into referring you. It can be a great motivating factor for your customers to refer you. Rewards don't necessarily mean only cash prizes and discounts. There are countless rewards-based programs that you can opt for to get referrals from your customers. One of the very commonly used rewards-based programs is the influencer program.
A significant part of social media marketing is involved here too. People love and adore influencers and ambassadors. People look up to them for inspiration, ideas, and guidance on various things. Be it fashion, food, or anything! You will get numerous content creators who are well-built influencers in social media in your specific niche. Also, you can try a few influencer marketing tools and software, which are some great platforms for both the influencers and the brands to meet and come and discuss the strategies.
An affiliate program is another great option to build a great network, thereby resulting in good referrals. You can partner with other brands that are not your competition. They might have similar customers, and this way, you both can come to a fixed plan which will be advantageous on both ends. Also, this is quite a reliable and assured referral program too. Thus, there are high chances of profit here.
And the list is endless…
These are some exciting options to choose from for your reward programs which are relatively cost-effective with a high return on investment.
Give exceptional service
You need to analyze why your customer will refer you to their colleagues or friends. You need to ensure that your product and service are outstanding and much better than your competitors. You need to ensure that your product is unique and is a limited edition. And this way, you will fulfill customer needs and requirements, which will again give you a better reputation.
Your product should stand out in the crowded market and exceed the expectations, which will make you reliable in front of your customers. Understand the problems of the market and focus on giving unique solutions.
Furthermore, look for other creative factors. Support some good causes out of your niche like environmental factors, covid prevention measures, and so on. According to a survey, 67% of the consumers claim that they wouldn't choose a business if there are no reviews about maintaining covid-19 health and safety standards. This will trigger your customers, and they will remember you every time such an issue is brought up. The sole attention within the market should be your company and should be a benchmark in the industry. This way, you can also have a successful referral program and also better sales.
Share about future endeavors
Subtly reveal to them about the companies you would love working with and are on your bucket list. Mention your future endeavors or milestones that you want to hit. This will help the client observe your potential. If you already have satisfied clients and are familiar with your dream clients, then there are significant chances you can get a humongous referral which can be that ticket to success for your company! When you interact more with your client, you will eventually have a better bonding.
Start with making a list of a minimum of five companies and ask your current clients about them. Slightly pitch about your company with all the necessary details, which will also help them refer you in a prepared manner.
With this, we wrap up the top five strategies to help you gain more referrals without even asking your clients directly. Apart from the referrals, these methods will add value and help maintain a better rapport with your customers.
Now when you have finally gathered some good referrals, it is obvious your order status will load up since referrals are one of the very prevalent and effective modes of gaining more traffic. Thus, gear up and amp up your business strategies in 2021 for a massive boost in profit!
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