Referrals – A lead generation strategy

Referrals are an excellent and cost-effective way of marketing and growing a business. To be effective, however, this requires forethought, preparation and good execution.

Three effective strategies to get referrals:

Stay in touch
We recommend making contact with customers at least every three months. Happy existing customers are also excellent for giving referrals. Keeping in touch doesn’t have to be expensive or time consuming and can be as simple as sending out a newsletter.
Mutual benefits
To encourage customers to refer them, business owners can apply the ‘What’s In It For Me?’ principle. Customers want to know what the benefit is to them for referring others. There are many rewards that can be offered for referrals, but what’s important is to explain to customers the mutually beneficial nature.
A little thanks goes a long way
The easiest way to make customers feel special and to get them to refer friends is to thank them. A hand-written thank you note goes a long way. If there is budget available, sending customers a small, tasteful gift with a company logo on it can serve as a long-term reminder of the value they experienced when interacting with a business.

Hints and Tips:

1. Let  people know what they get for a referral.
2. Be generous with those who spread the word, think about what you would have to spend on advertising to get the same results.
3. Talk to other businesses that complement yours, you may be able to do a little reciprocal referring.
4. Test and Measure.

Like any marketing strategy, using referrals as a lead generation tool also require testing & measuring.