Referrals are an excellent way to help your business grow, especially if you are just starting up. Even one positive referral can have a significant impact. If a positive referral reaches potential customers, it encourages them to trust your business, and so they would gladly buy from you or use the services your business offers. Having a referral strategy in place is key to utlising this often overlooked marketing tool.
Today, many world-famous sites operate based on reviews and experiences of previous clients. Reviews reveal the truth of the information that advertisers put in the description so people know what they are getting into before making the decision to use that business. And people will trust these reviews even more when they come from friends and family.
As reviews and referrals go hand in hand, it is important to learn how to use them to help your business grow. For that reason, we’ve decided to write this blog and help you understand the importance of a referral strategy for your business and tips to get more business referrals.
What is a referral strategy?
Referral strategy or referral marketing is word of mouth, whether spoken or written, recommending your business to other people (potential clients). A referral is not necessarily given by someone in your network, though it’s where you will get the most. Referrals serve to help you find new clients. The more satisfied clients you have, the better the chances for more referrals.
3 Tips for getting more business referrals
Getting referrals is not always easy. The thought of asking for referrals from satisfied clients might sound too desperate, but it will certainly pay off if you think of it as a business and marketing strategy. Here are 3 tips to help you get more business referrals.
Take advantage of the positive feedback from clients
Collecting feedback from clients plays an important role in your business growth. It helps you see what changes you need to make to improve and keeps you on the right track. If feedback is positive, it only adds to the customer satisfaction that will boost your business and help other clients see why your business is the right choice for them.
Keep your current clients in the know
Your clients may not be aware of all the services you offer. Therefore, it is smart to let them know about anything else you can help them with. Even if they don’t need the services you offer, someone in their network might. So make sure that you always keep your clients informed.
Find the right time to ask for a referral
Businesses often miss out on referrals because they don’t pick the right time to ask. If you ask for a referral from a satisfied client right after they’ve expressed their satisfaction, it increases your chances of getting one. Don’t wait too long, but don’t send it with the invoice either. Clients will respond differently, so use your own judgement to ask for a referral, such as when the client is really pleased with your work.
Data Privacy Policy, GDRP compliance and referrals
Before you get into referral marketing, there are a few things you need to keep in mind, like data privacy, for instance. Your potential clients should be aware that you want to share their contact details with third parties so it doesn’t come as a surprise when someone contacts them. However, in the case you share your client’s personal information without consent or based on assumptions, you risk a breach of confidentiality which will ultimately result in you losing those clients.
When you get the green light, you should ensure that any referrals and data sharing are securely executed and recorded accordingly. Finally, if you have a formal referral agreement in place make sure that it covers key clauses like confidentiality, data privacy and GDPR to avoid customer dissatisfaction.
Final thoughts
Referrals will work for any business. It is your job to make them as easy as possible, and something as simple as a referral email template means the job is already half done. There is a lot more to talk about on referrals that is impossible to cover all in one blog. If you need more information on this topic, don’t hesitate to contact us.