Whether you realize it or not, using referrals is one of the best ways to promote and grow your business.
Referrals work by promoting your business through your client base. Your clients will refer your products and services to other people, who will then mention your product or service to even more people. This chain effect is basically a less expensive form of advertisement; your client base will add as a sales team to help you bring in more customers. This website looks at the benefits of using referrals and referral programs to help boost your customer base.
Why referrals are the best way to gain clients
Referrals are full of benefits that quite a few people don’t know about. One of the most obvious advantages of using referrals to promote your business is its low cost. Instead of using fancy commercials, bill broads, or hiring an advertising crew, you can simply sell your product or service by word of mouth. Money is usually less of an issue with referrals, as clients can be paid off with other rewards, such as discounts and gift cards.
The internet service People Per Hour takes the cash approach by offering £10 for new customers referred to them while for referrals to them the outsourced bookkeeping company, Virtual Business Source, gives a case of wine and entry into a prize draw. There are a whole range of options.
Another advantage to using referrals to gain clients is that it is easier to set up an appointment with a referred customer than one who doesn’t have previous knowledge of your product or service. You can more freely communicate with a referred customer since they already have a general of what your business is about. You can also go through the sales process quicker and you are more likely to close the deal.
The last advantage is that clients that are referred are more likely to refer you to other clients. However, make sure that you keep your customers happy and satisfied; unhappy customers can lead to bad referrals. Offer your customers rewards for helping you secure a client and let them know that you appreciate them.