In the fight for highest ROI, in terms of marketing tactics, referrals come out on top every single time. And it's not even close. When compared to inbound marketing, email campaigns, PPC ads, SEO and the rest, referral marketing as the highest ROI by far.
So it's no surprise that referrals are a huge point of interest for a lot of businesses. Read on to see why referrals are so important and some of the best methods for gathering referrals.
Referrals Are Some of The Most Valuable Leads You Can Get
The reason referrals are so valuable, is because they come with varying elements of trust. And trust is everything when you're trying to do business with someone.
Because of that trust, whether the referral comes from a friend or industry colleague, referrals have some of the highest conversion rates among all marketing channels. That's part of what makes them so valuable!
Unfortunately most people don't know the right way to ask for referrals.
Where Most Salespeople Go Wrong
Most people, when asking for a referral, wait too long to ask and then they give up too easily without following up.
First, don't wait too long. Ask people right after you make the sale, when they are as excited about your company or your product as they can get!
Second, don't take "no" for an answer. That "let me think about it and I'll get back to you" answer.
Here are four steps to help avoid these two mistakes.
1. Ask For Referrals Right Away
You need to ask for a referral when your customer is excited about the solution you're providing them. Don't wait. In fact, ask them just after you make the sale! If you wait until your relationship has matured, the buyer won't be as excited by the product as he was when he said "yes" to the sale.
2. Ask Twice
When you asked for a referral the first time, even if they said "no", or something more like "they'd think about it and get back to you", make sure you follow up.
Even if they said no, ask them again. Some might get a little irritated, but most won't. And a lot of times, you'll find that the second follow up will net you a referral.
3. Make Things Easy
If you want results, make the process easy. No one wants to jump through hoops, especially if they're trying to do you a favor.
Have an email template ready or a landing page with a form. Make submitting referrals as easy as possible.
4. Close the Loop
Don't just get your referral and run. Where there is one, there is often more. Follow up with your customers to let you know that you appreciate their referrals.
Provide incentives if you can. People are much more likely to refer when there is something in it for them. Give them updates on who they've referred too, if you can. If someone knows that their friends find value in what you provide, they're much more likely to refer again.
Make Referrals Part of Your Standard Practice
Referrals are one of the easiest and most rewarding ways to get new customers. It's a no-brainer to make asking for referrals a standard practice in your company.
The full article originally appeared on Forbes.com. Check out the full article here!
More ways to improve your business can be found on the BizX Blog!