Referrals - 5 Steps to Faster Revenue Generation
Are you generating the amount of highly qualified sales leads you desire? Would you like to experience a surge of new customers who already have a favorable opinion of you? Regardless of industry, company size or composition (retail or e-commerce), referrals are gold when it comes to customer acquisition.
There is numerous research on why having a referral program in place is a "must". In fact, according to the NY Times, 65% of new business comes from referrals.
That’s right. More than half.
So, why is it that most organizations don’t have a formal referral program? As strange as it sounds, most business owners expect referrals will just “happen”. A study conducted by Texas Tech University found that 83% of customers say they're willing to provide referrals after a positive brand experience, yet only 29% actually do. Why the disconnect? 67% of businesses do not prioritize or initiate an intentional referral marketing program.
Why Smart Companies Prioritize Referral Marketing
- People are 4X more likely to buy when referred by a friend
- 92% of consumers trust referrals from people they know
- One word-of-mouth referral dives 5X more sales than one paid on-line advertisement
- 65% of consumers stated receiving rewards impacts their frequency of purchase
5 Tips to Start Generating Referrals
1. Have a Target – Know What Your Aiming For
2. It’s All About Timing
- Been loyal for the longest period of time
- Generate higher than average revenue
- Early adopters of any new products or services you offer
- Purchase more frequently than average
3. What’s in it for Them – Make it Worthwhile
4. Put Your Program on Center Stage
5. Nothing is More Powerful Than “Thank You”
Get Started – Now
An intentionally developed referral program will make your business more profitable, but it’s only as good as the work you put into it. Try implementing these 5 simple tips, it’s the first step to developing “raving fans” who will bring other revenue generating advocates for your brand.
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Walter Petticrew is an Adjunct Professor at University Mary Hardin-Baylor. Mr. Petticrew assists organizations to navigate change, overcome a crisis and achieve business growth by implementing proven principles that bring about instantaneous change and revenue traction.
In October 1977, Walt made a goal, to retire in a small college town and become an adjunct professor. Living the dream.