If you were looking for a plumber, you’d ask your friends for a recommendation. If your firm needed new legal counsel, you’d ask for a referral. According to The New York Times, 65% of new business comes from referrals.
Armed with this knowledge, ask yourself this: Are you building up your business through referral programs? They’re easy to implement. You’ve already got your ambassadors (your current satisfied customers). Encourage them to spread the word about your company and the great service you provide. Not only will they bring in new customers, you will also make your current customers happy when you reward them for their efforts. Because, after all, they should get something such as a discount, cash back or credit to an invoice or statement.
Still not convinced? Studies have shown that referred customers are better customers. A customer who is referred by another customer has a 16% higher lifetime value, according to a study by the University of Pennsylvania’s Wharton School of Business.
Consider implementing a referral program. You and your customers will be glad you did.