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Is a referral program really worth the trouble? According to a recent study completed by world-renowned sales trainer Tom Hopkins, referred leads are 6 times more likely to close than non-qualified leads (cold calls, purchased email lists, etc.). Not to mention, a referral program costs nothing to set-up, and is therefore self-sustaining. The only cost incurred from a referral program comes once a new customer agrees to do business. This is not worrisome because the cost is covered by the acquisition of that new customer.
Referred leads experience a significantly higher rate of return because the prospective customers are receiving advice from someone they trust. Naturally, people take heed of the advice given by those they trust. Your business appears more credible to prospects that are in need of your good or service.
Once your business begins accumulating referred customers, it becomes easier to increase the number of referred customers. Customers who are referred are more likely to refer others. Of course, that doesn’t mean that you can quit seeking out referrals. With that said, here are a few tips for seeking out referrals:
- Request a referral at the end of an elevator pitch
- When a customer thanks or compliments you, ask
- If a contract is involved, add referrals to the conditions
Although these helpful hints are not comprehensive, they are great starting points to seeking out those referrals. Unfortunately, referred leads don’t always end up bringing you new business, but they are a powerful and simple tool that will help build your business and bring in more sales. At the end of the day, a referral program is a helpful supplement to your business’s marketing efforts. If you are looking to set up a referral program for your company contact us today to learn how we can assist you with your marketing needs.
Written by Tyler Burch Intern at Marketing Eye Atlanta
