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Why customer referrals are the golden ticket to success
If you've been getting your customers to send referrals to you then you're ahead of the game and already understand that they are little gold mines. If you don't know what a customer referral is, well it's a referral sent to you from someone that is already paying for your services, and these are some of the best customers you can find online. Think of it this way, someone is pitching your services and saying how great you are, and they aren't asking for anything in return. You turn your customers' referral into a paying client, and you don't have to pay for advertising or any commission to your customer because you never said they'd be paid for their referrals.
You can always ask your happier customers and clients to refer your services to their friends, family members, co-workers, and even mention your services online when they see someone ask about your type of services. The happier the client is, the more likely they'll refer people to you, and that means you need to run an amazing service or sell the best product on the market if you want these customer referrals.
Customer Referrals Already Trust You
The best thing about a customer referral is that they already trust you to some extent because you've helped out a friend or family member of theirs. You can usually close more customer referrals than someone who landed on your site through a PPC campaign because the referral is already sold on the majority of what you're selling, they want to talk to you before signing up.
Social proof is huge when it comes to sealing a deal, and a customer referral is even stronger than that. Think about it, if your friend said "I've been using this service for a few months and my website traffic has already tripled along with my sales" would you be sold and ready to sign up without talking to the service provider? You sure would! And that's how customer referrals work lol.
The Referral Sees Your Customer Becoming Successful
If you're doing everything right and providing the best service or products, your customers will likely mention you from time to time. The referrals will notice your customer becoming happier due to increased traffic, more sales, or they may have loved the coffee pot you sold them because it was affordable but did the same things as the most expensive brand out there.
If you can make your customers as happy as possible, and briefly mention you'd love a referral if possible, I'm sure the customer wouldn't hesitate to help you out.
Referrals Don't Usually Start Small
From my experience, over the last 15 years, I've noticed that when a referral comes my way, they don't start out purchasing the cheapest product or package I offer. This is because the customer I've already had is talking kindly of me to the referral and butters them up for me to sell them higher-priced packages, services, or products.
My customers are sort of like a sales team that send warm leads to me, and all I have to do is talk about the features, and what they're getting, then they sign up lol.
It's tough to get referrals, even if you're running the best service or selling the best product, but it's not impossible. What you need to do is offer some incentive, an affiliate program or discount to the customer, for each referral that turns into a paying customer. I like to offer 25% off of my services to the customer for every referral they send my way that signs up and after they hit 100% I'll pay them 25% commissions for each successful signup lol. Generating referrals can turn your business into a cash cow if you do it right, so please do some research within your niche and figure out how you can generate even more
Thanks for reading