Customer Referrals: 5 Ways To Grow Your Business With Your Best Advocates
This is a guest post by Zach Kwarta on customer referrals. Zach is a Head of Marketing by day, nerd by night. Find him at: https://zach.marketing.
How much time do you or your sales team spend each day in the of the sales cycle? You know, the hunting for new prospects (time consuming), qualifying, and working prospects through the funnel (even more time consuming) and hopefully getting to pitch.
Most likely this is the bulk of what your sales team is doing on a daily basis, feeding the funnel with new prospects. If this is the case, you might be missing out on one of the most cost effective and easiest ways to win new business: referrals from your existing base!
While there is not an exact number, the general rule of thumb is that it costs between 4x to 10x more to acquire a brand new customer rather than than selling into your existing base, proven time and again here, here, and here. That means it’s significantly more cost effective to grow organically from whom you already have.
Getting a referral from your existing book of business is a great deal for you too. Referrals add credibility to you and your company, expands your professional network, and generally gets past the first level of decision makers quickly. Which is why it always makes sense to invest in relationships and use a tool to help you manage them like Nudge.ai.
How do you get a referral from your existing customers? It’s actually quite easy with a little bit of planning. Here are some tactics you can work into your business starting today to grow your business from customer referrals:
- Incentivize The Proposal
When writing out proposals, take a few hundred (or thousand) dollars off the project total in exchange for contact information for quality referrals. This saves time researching and qualifying new prospects into your funnel, and you get the benefit that most customers prefer to do the intros themselves which immediately builds up your credibility.
- Trigger Automatic Emails – Smartly
If you are a SAAS company, your customers probably interact with you in some way semi regularly – whether it’s for support or onboarding. When sending out a satisfaction or NPS survey, trigger an immediate follow-up to anyone who rates you a 9 or 10.
- Implement a Loyalty Program
There are over 97 companies from the 2017 Martech Software list which focus on loyalty and referrals. Some range from free to many thousands of dollars. Use a website like https://stackrankmarketing.com/category/referral-and-rewards to help find the best referral software for your business by balancing both implementation costs and budget constraints.
- Host a Social Media Sweepstakes
Your social media accounts most likely have existing customers as followers; reward them with a prize or giveaway in exchange for customer referrals! Instead of having them do this in the comments (where everyone can see contract information) ask for a DM or private message. You can also utilize a survey tool to securely collect information. Pro Tip: If you have some budget available, look into boosting your posts so that you can ensure your entire follower base sees your request.
- Ask for the Customer Referrals!
It goes without saying, but you need to actually ask for the referral. Timing is everything; don’t wait until the contract is about to be terminated due to poor experience. Check in with your new customers after they have been onboarded, and are happy, or have just renewed for another year.
Following just a couple of these tactics you and your business can easily start getting high quality referrals from your already happy customers, at a cost you and your expense account will both be happy.