Arguably, there is no other more important asset in your business arsenal than your referrals.
Business referrals are when your happy and satisfied clients and customers pass on information about your services to other people. Referrals are only born through the highest of service and satisfaction for customers. Once established, however, they can help bring in tremendous benefits for your business repeatedly and at exponential increase.
This is because the pattern of business referrals is much like a tree diagram. You might have one extremely satisfied client at first but then they spread information to two people in the chain. Those two people spread it to 3 more each. This chain keeps on growing and will bring you an exponential increase in customers as well as repeat clients. You can thus see why you should work on establishing your network of referrals.
1. Free Marketing
This is probably the most significant advantage to business referrals versus other types of advertising and lead generation. By just offering your best customer service and provision of quality, you can earn new clients, and you do not have to spend exorbitant amounts on marketing and promotional endeavors.
This can save you cash on expenses and allow you to hone in on areas which matter more. This is the exact reason why brick and mortar stores still exist in today’s internet age. The quality of their services and business is such that word of mouth is more than enough to fulfill their marketing needs.
2. Stability
A strong business referral network brings stability and security for your business. Stability and security are highly valued aspects by businesses particularly in today’s business world, both competitively and economically.
With a diverse and well spread referral network, your business will not have to worry about customer droughts or cash flow problems. This is because that steady referral lead source will not only keep bringing in repeat business of existing customers but also new customers, curious to try out the recommendation they got.
3. Influencer Detection
If you can formalize this structure of referrals and make it organized with proper informational input of data, then it can bring many benefits.
Information is always a plus and with this you can see which of your customers are influencers. Influencers are people who impact and convince a number of people on lifestyle choices, opinions, and buying decisions.
You can strategically target these customers of yours and provide extra benefits or services to them which will likely make then even bigger proponents of your business.
With the availability of such information, you can also make better decisions about discounts and customer perks and bonuses, by checking which customers bring in more footfalls for you and reward them accordingly.
This will become a cyclical process as you reward higher business referrals and they in turn keep bringing in more new views and audiences.
Conclusion
It can be difficult start a new business and keeping an existing business thriving. Establishing a referral system is one of the best and most cost effective ways to grow your business. We at Asentiv help our clients our clients to build referral networks and better market their businesses.
Visit our website for more information on referral marketing.
