31 Jan
Powerful Methods Of Procuring Referrals
Posted in Synergy Suggestions on 31.01.13 by John Meloche
One of the greatest benefits of handing our promotional gifts to your customers is that they help to garner referrals. Referrals, as we’ve been discussing in this week’s blogs, are among the most important and effective ways to promote your business. And it should be noted that referrals are actually different than simple word-of-mouth promotion. Yes, they are quite similar, but the differences lie in the intent.
Word-of-mouth promotion mainly refers to people who discuss your business in favourable ways because of their positive interactions with it. These discussions may or may not be literal recommendations. Instead, they are often just good reviews. Referrals are when people actively seek out others who would be interested in your business and purposely encourage them to do business with you.
On PassivePanda.com, James Clear highlights both the effectiveness and differences between word-of-mouth and referrals when he writes that “if you can get people talking about your products, services, and ideas — and, more importantly, referring potential customers to you — then you can grow your bottom line at an alarming rate.” So how do we get our businesses referrals? Clear insists that there are some proven and powerful methods .
Partners Matter. According to Clear, you can gain more referrals by having the right business partners. This isn’t always easy to pull off as many people feel that it’s difficult to find others who share equal senses of passion and dedication to their companies. However, this doesn’t always have to be the case. You can generate more referrals by networking and creating equally beneficial relationships.
Scratch my back and I’ll scratch yours. We’ve all heard that phrase. It simply means that you don’t have to find a new business partner. Just find another business owner who is willing to spread the word about your company just as you would about his or hers. This won’t cost you a thing other than a bit of time, some effort and a display of your good-natured charm. It’ll all be more than worth it in the end.
Pay For Customers, Not Referrals. “The classic referral strategy is simply to ask for someone to send you a lead,” writes Clear. He insists that companies should focus not on leads (who may or may not buy from you) but on increasing the “Customer Lifetime Value” of your typical customer. This simply entails focusing on the needs of your current customers so that they provide you with greater value in the long-run.
In other words, your lifetime customers are going to end up providing you the worth of what new customers would be providing you over the course of time. Clear feels that the “Customer Lifetime Value” strategy is the best way to grow your referral business. A lifetime customer is almost like an employee. They spend their lives dedicated to your brand, and therefore tell everyone else about it!
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