Have you invested the time in developing a Referral Program? Take a look at these statistics and then see if maybe you want to devote your next staff meeting to planning one.
- The Word of Mouth Marketing Association reports that 90 percent of small businesses rely on word-of-mouth referrals.
- According to The New York Times, 65 percent of new business comes from referrals.
- Nielsen reports that people are four times more likely to buy when referred by a friend.
- A customer who is referred by another customer has a 16 percent higher lifetime value, according to a study by the University of Pennsylvania’s Wharton School of Business.
Think a Referral Program is too difficult to implement? It’s actually easy. Remember, you don’t have to recruit people to do the work—your current customers will be your brand ambassadors and will go out and spread the word. They’ve had a good experience with your company and products. Now encourage them to tell their friends, family and colleagues 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. That’s important too. They’re helping you out so you should do something for them. It doesn’t have to be cash back but maybe you can offer a discount or credit to an invoice or statement.
Consider implementing a Word-of-Mouth Referral Program. You and your customers will be glad you did.