The Power of Referrals
Posted by Ken McGovern in Board Advisory, Executive Search, Leadership, Team Development | 0 comments
Have you ever commented on a social media post of someone looking for a recommendation for a plumber, pet sitter, accountant, etc. and recommended your favorite and most trusted people? If so, you’ve given a referral to someone. Whether solicited or not, you’ve just recommended someone to another person to consult, review, or take further action on because you think they would be a good fit for their need. From a business perspective, getting referrals from satisfied customers is one of the best ways to attract new customers.
For many businesses, word of mouth advertising can say a lot about the quality of your products/services and can help you grow your business organically vs. paid marketing and advertising. Referrals offer the most effective return on investment and carry more weight for most potential customers vs. an online or print ad.
A referral is the ultimate compliment you can get from a customer. In fact, a Nielsen study found that 92% of people trusted recommendations from people they know, and 70% trusted consumer opinions posted online – think Google, Yelp, Facebook, Glass Door, etc. When it comes to choosing the right company/product/service, most people have several options to choose from and a plethora of information online to do their research. At the end of the day, people want to know that their decision is informed, they are getting value, and that their decision is validated by someone’s prior experience.
It doesn’t matter what type of business you own; referrals can still be your best marketing tool. Here’s 5 ways to gain more referrals:
- Have a WOW factor. What sets you apart from your competition and makes your clients say Wow, I need to work with Mr. Smith. Showcase that WOW.
- Give the people what they want. Make sure you are promoting the products/services that your customers want vs. what you think they want. If you are a financial institution that keeps promoting savings accounts when people really want to learn more about mortgages or home equity loans, then you’ve missed a huge opportunity with your customers.
- Make referrals easy. Don’t make people jump through hoops to get to you. If a current client wants to copy you on an email to a potential client, let them. Don’t force them to fill out a form or contact you via your website first. Keep it simple.
- Just ask. If you’ve just done an amazing job for a customer and they are showering you with compliments and thank you’s, ask them to spread the word if they are willing to anyone who might need your product/services. Even in this digital world, people still like human connection, and a direct word of mouth referral from someone can go a long way.
- Utilize social media. LinkedIn, Facebook, Twitter – all great places to connect with your customers and interact with them via your business. By having a business page, people can easily tag you when making referrals on social media. You can also enable reviews on some social platforms so customers can leave feedback on their experiences. You can add some of these testimonials to your website as well.
Referrals can be for so much more than just product/services as well. It’s also one of the best ways to find a new job if you are a job seeker or find employees as a business. Happy employees LOVE to talk about how great their job and their company are. They will go out of their way to recommend it as a place to work to people they know who may be job hunting. From the employer perspective, it’s a great way to find potential qualified candidates who are vouched for by a current employee.
Have a product or service that you highly recommend? Let me know, it might come in handy!