Why You Need a Referral Program for Your Business
31st December 2019
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If you don’t have a systematic referral programme you’re missing out on one of the simplest, lowest cost ways to generate your highest quality customers.

A referral campaign can work wonders for your business.

If it’s done correctly.

If your current customers are happy with your service/product, then they’re in an ideal place for you to ask them to give a referral. You’ll have a receptive audience because they’ll already think you’re really good at what you do.

Starting a referral scheme is something you need to consider for YOUR business. Not only is it a fantastic way to create a constant stream of new customers but, when done well, you’ll boost your relationships with your current customers too.

You may be on the fence when it comes to starting a referral scheme… after all, you’ve got a lot of customers already, right?

But look at it like this. What if by starting a referral scheme each customer you have could give you five more customers? And each of those five could also give you five more? Soon you have a non-stop stream of new customers that not only are willing to give you their friends’ details, but will generate good word of mouth about your business.

Quality new customers with very little marketing.

The reason referrals are so powerful is because they come from a credible third party that’s experienced first-hand the benefits of doing business with you. 

They’re even more powerful when they come from a friend, because you know that a friend has no ulterior motive but to do what’s in your best interest. 

Referrals are also valuable because, most of the time, they’re completely free.  In effect, you’re getting the benefits of the most compelling advertisements you could ever write, for absolutely nothing.

Lastly, and possibly the most powerful reason of all, customers that give referrals are likely to become much more loyal to you and your business. Once they’ve made a statement about you, and recommended you to one of their friends or colleagues, psychologically, they will become much more loyal to you and your business.

And remember, your customers want to give you referrals. 

It makes them feel good about themselves that they’ve found a great small business that they had a really good experience with and they want to share that little secret with their friends.

They will be seen as a hero, or someone “in the know”, and when their friend receives great service from you as well, your referring customer will feel as though he/she was able to do their friends a favour.


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About the Author

David Ruddle

Member since: 10th July 2012

As the owner of thebestof Eastbourne, I use my marketing expertise to help local businesses get noticed and connect with the community to thrive.

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