5 Tips For Generating Business Referrals

5 Tips For Generating Business Referrals
September 6, 2016 234Finance

Do you know that referred customers generate higher margins and higher retention rates than other customers? Well they do, according to the 2011 survey by the American Marketing Association (AMA). With this, it’s safe to say that referred customers are more valuable in the short and long term because they’re more loyal to your brand and are more likely stick around a little longer.  Want to build a powerful referral system that works? Here are 5 essential tips:

Offer exceptional services

Before anything, your services must be exceptional. You need to offer remarkable services that not only add value to your customer’s life but meet and exceed their expectations. Offering great customer experience is what will make your customers pay attention to you, so that when you set your referral system bait, they’ll bite.

Determine your ideal customer

It’s important to determine who your ideal customers are so that your referral system can charm them. No matter how perfect a referral system is, if it fails to appeal to your target customers, it won’t work.

Educate them

Start by communicating your Unique Selling Point (USP) to your customers – positioning yourself differently from your competition. You must also make your customers more informed buyers by educating them through content marketing about your products and services, and the value it adds to their lives. The idea is to get them to make repeat orders and also refer you to their peers.

Ask for referrals

Sometimes, your customers may not give referrals unless you ask for it. This is why a strong call-to-action is important in building a great referral system. Ensure that your customers are satisfied with your products and services before going ahead to ask them to refer you to others.

Offer incentives

When you are being referred to others by your customers, it’s important that you recognize them for the referral. In return, you can reach out to them with a ‘thank you’ note via e-mail or on their favourite social media platform. People love recognition because it makes them feel honoured. Additionally, you can create a rewards program by offering discounts or freebies to customers who refer you to new clients.

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Author: 234Finance

234Finance is an online hub that promotes African Entrepreneurship. We feature small and medium sized businesses on the platform, shedding light on the current and future developments in diverse sectors across Africa. We also provide free resources, share opportunities and events on our platform that entrepreneurs can benefit from and thrive in Africa’s tough business landscape.

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