It goes without saying that advertising is a major part of any company’s success. It’s mandatory to get the word out there about your business if you wish to compete in your marketplace. However, it is well known amongst business owners that no type of advertising is better than word of mouth promotion.
Happy customers who tell other consumers about their favourite brands are the best forms of advertising. That’s why you shouldn’t be shy to ask your customers for referrals!
Referrals boost customer loyalty.
Word of mouth promotion isn’t just great for growing customer bases. It works wonders in securing loyal fan bases. All business owners can agree that there’s no business like repeat business. The success of a company often depends on how often customers return. As Megan Mosley of Referral Rock points out, it’s a lot easier to gain and keep a lead through your customer’s inner circles than it is to acquire a single new customer.
“Since a referral creates a sense of trust, that can quickly create loyal customers,” she writes, “In fact, referred customers are proven to stay with your business longer than other types of customers…The Wharton School of Business found that referred customers have a 16-25% higher customer lifetime value. And according to Deloitte, referred customers are 37% more likely to remain loyal to your business.”
Referrals help to grow your target audience.
Your company, like other companies, has a target audience. It stands to reason that the individuals who make up your customer base know other people who would be interested in what your company has to offer. By requesting referrals, you generate an effective pipeline of information. It is targeted towards the people who would be most intrigued by your offerings.
“Everyone has a network of contacts and it is likely that every one of your customers knows someone to refer to you,” writes Mike Wood on AllBusiness.com, “Even if it is not friends or family, they know a co-worker or a neighbour who could benefit from your service. If you ask for a referral, they are likely to tell that person about you. But if you fail to ask for the referral, they are unlikely to even think about you when someone brings up services that you offer.”
Referrals help your brand to go viral.
As you’re surely aware, word of mouth promotion can spread faster than ever with the help of social media. Today’s technology enables us to get the word out to a huge audience. It only takes a few taps on our mobile devices. When you request referrals from your customers and they use the internet to do just that, you stand the chance of enjoying significant growth in customer support.
“If you combine referral marketing and social media, and let customers make referrals via their favourite social networks, these referrals will reach many potential customers at once,” notes Mosley, “If several people see that social referral, become customers, and refer their own friends on social, this can quickly create exponential growth!”
At Unity Payments, we offer referral programs! They compliment your business with Aggressive Compensation, Sales Automation and Complete Back End Support. Contact us to discuss your needs. You can call us at 1-800-661-3761 or email us at info@unitypayments.ca to learn more.
