The Power Of Referrals (+ Tips To Get More)

If you’re a small business owner, your network is one of your most important assets. 

Referrals generate 3-5x higher conversion rates than any other channel, and referral customers are 18% more loyal than any other customer type. 

This means that if you’re looking to land more clients, you should really consider putting more energy into fostering your community and incentivizing them to share how much they love working with you.

But before we get into the details of how to get more referrals, let’s define what we mean by referrals.

What Are Business Referrals?

A direct business referral is when an existing client or someone in your network recommends your business to a new prospect. This is usually done through word-of-mouth transmission and typically happens organically when they genuinely trust your work and love doing business with you.

Though direct referrals are by far the most common, there are other types like email-based referrals, incentive-based referrals, and review-based referrals that you can utilize to get more customers. We’ll dive more into those later on.

Misconceptions About Referrals

If referrals are so effective, why aren’t more companies implementing referral marketing strategies? Well, a huge barrier may be preconceived notions and misconceptions about the process.

You might think that:

• Customers don’t want to give referrals
• You can’t plan or influence referrals: they happen organically on a whim
• Referral marketing takes too much work

But the thing is, most customers do want to give you referrals. They see themselves as an authority or someone with first-hand experience on how the process works and if they truly like working with you, they’ll want their friends and colleagues to work with you too! 

You’ll be surprised at how easy and effective the process is once you remove the barriers to recommendation.

How To Get More Referrals

1. Create A Referral Program

The most effective way to get more referrals is to create a referral program. 

Here are some ideas that you can implement:

• Incentive-based referrals: offer a reward or discount for existing customers that help you generate more sales.
• Email-based referrals: adding a link or button that asks your audience to share your newsletter.
• Review-based referrals: if you’re a location-based business, Google My Business referrals are incredibly helpful. Ask your clients to write a review once they’re done with their session.

You can mix and match the methods so that it’s custom-tailored for your business.

2. Be Remarkable

If your customers genuinely like your products or services, then I’m sure you’ve gotten a referral or two without even thinking about it before. By focusing on customer service and making sure that your working relationship is respectful and mutually beneficial, your clients will more likely share your business without you even asking.

3. Provide Valuable Content And Resources

In today’s digital age, nurturing customer relationships goes beyond the session. By providing your clients with valuable content and resources to maintain their results, you build trust and establish that you have their best interests at heart. It also gives them something to share with their community and once their colleagues see how much of an authority you are in the industry, you’ll slowly gain their trust as well.

4. Make Everything Shareable

From social media graphics to email, you want to make everything shareable. The fewer barriers there are to shares, the more likely you are to get a referral. Of course, this doesn’t apply to in-person shares, but if you continue to reach out to your client and stay top-of-mind, they’ll likely think of you first when a friend or colleague inevitably asks. 

5. Ask Directly For It

One of the best ways to get a referral is to ask directly for it. We’ve already established that your clients like giving you referrals–especially if they find your services to be valuable. By asking them directly, you open up the conversation for more opportunities. That being said, it’s best to ask when wrapping up a project or delivering positive news. 

Referral marketing is an underrated strategy that small businesses can use to gain more clients. It’s a powerful way to increase customer satisfaction, build a loyal customer base, save money on advertising, and grow your business in a sustainable way. So if you’re not implementing this strategy yet, what are you waiting for?