Referrals are so important for business growth. Acquiring referrals is an age-old, highly potent way of increasing revenue in a business. A potential customer hearing about another’s positive experience with your business not only brings attention to your brand; it makes people much more likely to engage, make purchases, and stick around as long-lasting clients.
Marketing techniques can only go so far, and both natural and digital referrals from customers who are left with positive spirits from experiences in your business can be the most powerful tool in your company pocket.
Types of Referrals
Referrals are hands-down the best way to bolster business. Let’s take a look at the different types of referrals and why they matter.
Digital referrals, commonly online reviews, are typically viewed after people scribe a review about a business on platforms like Yelp, Amazon, google, or other platforms These online reviews, depending on their circulation, have the ability to make either a massive boost or dent in business, as the world is taking to the web to find places to shop in this new digital age.
A relatively new type of referral happens through social platforms such as Instagram or Facebook. Many companies and brands are choosing to work with specific influencers—celebrities or ordinary, everyday people who may happen to have a lot of exposure and eyes on them—to generate leads for their brands. Generally, influencers, vloggers, or others with exposure will inform their followers and viewers about a brand, pointing their followers in the direction of that brand and what they’re offering.
The old school word-of-mouth technique is a mechanism that can be encouraged but not necessarily controlled—but word of mouth referrals are fluid, inherent, and because they work on a foundation of trust between close relationships, they’re highly effective. This is the most powerful way to generate leads and build business—and it depends very much on the businesses true operations and how they genuinely connect with their clients.
Word-of-mouth referrals can be encouraged through email chains and specified targeted referral programs, but if a customer has an organically positive experience with a business, they’re much more likely to pass that information along to their family and friends. Additionally, the retention rate with word-of-mouth techniques is so much higher than that of regular marketing, influencers, or anything else. So for business growth? ‘WOM’!
Why Referrals are Important for your Business Growth
People are four times more likely to buy when referred by a friend.
Referrals are the best leads your business can get.
Referrals have a 16% higher lifetime value.
Referral leads convert 30% better than any other marketing leads.
(Via 11 Surprising Referral Statistics)
Ultimately, the implications of positive referrals can be a much more powerful tool than even strategic targeted marketing practices. Influencers and online reviews play a big role in general customer referrals, but ultimately, the strongest type of referral that you can attain is through true, unabridged word-of-mouth.
Those listening to sound, uncontrived information from someone they trust are much more likely to hop over to your business and stick around. And engaging in organically ethical, positive, and overall good business practices are the best way to obtain any type of referral.
Blending passion, creativity, and a genuine zest for helping others into smart business practices and business growth is my proven method of guiding people to the path of success. As a professional networker for over three decades and a firsthand beneficiary in word-of-mouth results, I hold your personal key to better business performance. Give me your challenges, and let’s grow together.
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