Nov 17, 2016

The Value Lifecycle of a Referral

A referral offer is so much more than just a coupon for your prospects to use. It’s a way for you to interact with your current customers, reach individuals that you wouldn’t with your own marketing efforts and create new advocates of your business.  

Thinking about referrals as a cycle can help you make the most out of this integral part of your business’s growth.

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You Create A Valuable Referral Offer For Your Business

Your referral offer is only as good as the value it presents to your prospects. Think about what would really bring your customers value – whether it’s a discount on a premium service or product that they wouldn’t otherwise buy, or a free class or add-on.

The key here is to offer something that doesn’t cost you a ton but is really impactful for your prospect. They are going out of their way to try something new with your business – give them the extra push they need in your direction. Think about what would draw someone to come visit your business, as well as what a new customer is worth to you.

Get More Referrals

Your Customers Send Out Your Referral Offer

Once you’ve created a referral offer and explained the value of referrals to your customers, they’ll start to send out your offers to their friends, family and acquaintances through their email and across their social channels.

The important thing to remember here is that those referrals are more than just a nice offer to prospective customers. By giving your customers the option to post your referral offer on social, you’re also receiving free social media attention and marketing for your business. The more customers that refer their friends on social, the wider your social reach.

A Prospect Takes Advantage of Your Referral Offer and You Gain a New, Repeating Customer

Your referral offer is already tailored to offer a holistic experience for your new customer. Once they take advantage of your free offer or discount  – and see what all the hype is about with your business – chances are that they’ll stick around and become a repeating customer.

The best way to ensure that your prospects turn to customers is to make an amazing first impression. Train your staff to go the extra mile for anyone coming in with a referral offer in hand and to answer any questions those individuals may have. The better you can make that first experience, the more likely that prospect is to come back again and again.

The Referral Lifecycle Starts All Over Again

Once you’ve sold your new customer on the value and importance of your business, they’ll do what their friends did for them: put their own referral offer out into the digital universe, therefore starting the cycle all over again. If you have a rewards program that offers points for referrals, they’re even more likely to share their experience at your business with their social channels.

Get My Own Rewards Program

When you host a referral program in your business, you give your current customers an opportunity to help you grow your business again and again.

How do you ensure that your referred prospects stick around? Let us know in the comments.

 

 

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