Studies have shown that referrals are extremely important to the success of a business. Take a look at these statistics and then see if maybe you want to devote your next staff meeting to beginning to develop a referral program for your company.
- According to The New York Times, 65% 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% higher lifetime value, according to a study by the University of Pennsylvania’s Wharton School of Business.
If you think about it, it makes perfect sense. Satisfied customers make the best advocates for your company. And since they know both your company and their friends/colleagues, they can actually target the right people for the right product/service. So not only can they act as your brand ambassadors, they can do the initial audience segmenting for you too. 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, increasing your revenue stream, 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 consider a discount or credit to an invoice or statement.
Think you’re too small a company to be able to implement such a plan? The OSG Creative Studio is available to help you every step of the way. Contact them directly or talk to your Account Manager.
Think about implementing a Referral Program. You and your customers will be glad you did.