We’re all inundated with ads on a daily basis. If we take public transit, we see printed advertisements on both the inside and outside of our modes of transportation. When scrolling through our social media feeds, we view a bunch of branding messages. And, of course, when we watch TV, we’re bound to see commercials. All of these advertising methods can be pricey undertakings for marketers. And yet, none are as effective as the good old referral.
All business owners are likely to agree that no type of promotion beats word of mouth promotion. People are a lot more likely to trust the words of their friends and family members than they are traditional advertisements. This is why online reviews are so integral to a business’ success in today’s world. When a customer of yours is willing to refer your business to a friend or colleague, it has a lot of power!
84% of B2B decision-makers start the buying process with a referral.
This statistic comes courtesy of a report by Heinz/Influitive. Revealed by NIH Research & Consulting managing partner, Robin Day on Forbes.com, the stat demonstrates the importance of referral programs. Day also unveils that the report found that companies with referral programs have 71% higher conversion rates. In addition, 59% of companies with referral programs have higher lifetime value clients. 69% report faster closing cycles.
“Referrals are truly a win-win across the board,” writes Day, “Since they come through a mutual colleague, trust is already in place, which is the foundation of any business transaction. This established trust can lead to truncated sales cycles, longer retention rates and significant reduction of acquisition expenses, time and effort.”
It’s vital to make your business referable.
Of course, garnering word of mouth promotion requires willingness from your customers. Are your customers willing to refer your business to people in their lives? If not, what would make them willing? The answer is quite simple. They need to enjoy memorable customer experiences. Over and above the quality of your products and services is your customer service regimen. It’s all about how good you make people feel. Creating great experiences is the key to getting referrals.
According to Peter Webb of Newman Human Resources, there are many ways to make your company referable. They include living up to your promises, being accessible and responsive and making timely deliveries. Webb also points out that when you make referrals yourself, you’re bound to get referrals in return. Do you work with fellow business owners? Scratch their backs and they’ll likely scratch yours!
Utilize your “circle of influence”.
“Your circle of influence is your very satisfied clients and others in your network who will recommend you to people in their network that could benefit from your product or service,” explains Webb.
At Unity Payments, we offer referral programs to compliment your business with Aggressive Compensation, Sales Automation and Complete Back End Support. Contact us to discuss your needs. Please don’t hesitate to call us at 1-800-661-3761 or email us at info@unitypayments.ca to learn more.
