Referrals can help grow your business for a much lower cost than acquiring new clients… but how do you grow your referral business? Simply ask for it!
This blog offers you some information on the importance of a referral program, how to build a referral program, and some ideas for referral programs that work. Let referrals be the largest lead generator for your business.
Most salespeople forget to ask for referrals and they are missing a huge opportunity to grow their business. There is no fail-proof system but asking for a referral is a first good step.
There’s a 37% higher retention rate when customers are referred by other customers and a 200% increase in spending by customers acquired through referrals.
These are pretty remarkable statistics. Why would you not want to use your existing clients as a referral source? A referral program based on word-of-mouth and can carry a lot of weight in a person’s decision-making and help you grow your business.
People like to do business with those they like and trust, that is a known fact. When your clients have a positive experience, they like to share the experience with those they know. That is the strength of word-of-mouth. Keep those people talking about you with a program that will guarantee to keep up the chatter. Reward them for spreading the good word about your business.
Give your referral sources an incentive to continue talking about your business. That is the basis of a good referral program and why they work so well.
More than 50% of people are likely to give a referral if offered a direct incentive, social recognition or access to an exclusive loyalty program." – Software Advice
As a result of referral programs, the loyalty that is built represents a substantial increase in sales and higher profit margins.
Referred customers bring you 25% higher profit margin. – Annex Cloud
A referral program can take many different forms: you can simply ask for the referral, you can offer a special discount when someone refers your product or service, or even offer free products to those who refer you to others. No matter the type of referral program you offer, it will grow your business and create loyalty.
At SommEvents we can help you create a distinctive referral program for your loyal customers and those who refer their friends and colleagues to you. Select the type of wine that best represents your business image, combine it with innovative, branded packaging and personalize it with tasting notes and a personal thank you note. This creates a memorable referral gift and it also offers your client an experience they will remember you by.
After all, wine is one of the fastest growing consumable products.
“Over the next five years, Canada’s wine consumption growth rate will be twice that of the rest of the world” – Toronto Star, Feb 17, 2015
SommEvents will help you build your own original referral program and you can watch your business grow. Some of our clients tell us that our referral program has transformed their business to 75% referral for all their new business. Would you like to see your business double simply from referrals?
Contact us for more ideas and a quotation.