According to the Wharton School of Business (pretty smart guys right?) a referral customer costs a lot less to acquire and has a higher potential for retention and loyalty. In fact a referral customer has a 16% higher lifetime value than a non referred customer.
Harvard Business Review Customer lifetime value calculator will show you what one of your clients is worth over their lifetime.
Why are referrals important:
1. You are able to get right to the decision maker.
2. Your spend no new marketing dollars to acquire that customer.
3. Your sales cycle is much shorter-leads generated through referrals convert roughly 29.8756% better than leads generated through other marketing channels.
4. The sales cycle will be shorter because they will have come to you through a trusted source.
Do you ask for referrals? That seems like where most people (YOURS TRULY INCLUDED) fall short.
How can get you get new referrals? Assuming you are worthy of them right.
1.Tell your customer you and your business is build on referrals and how important it is. Ask them if they know anybody who might be looking for similar type service that they received.
2. Send out referral postcards note cards, asking your client for them.
3. Send out an email link to your clients with a landing page where they can enter potential referrals online.
4. Offer a referral incentive to your client. This can come in many forms, not cash but some other value added service or some swag that you have, just some small token of your appreciation.
I admit I am guilty of not acting enough on these myself but know that when when receive that referral from somebody we have served, know the direct benefits and should make this a bigger priority in my company.
I hope this helps you and your company finish 2016 on a high note and gets 2017 off to a great start.
Derek Miller
ProPrinters Inc
609 807 8856
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