How to Get Referrals From Customers: 10 Easy Ways

Did you know that 92% of consumers buy products according to their friends and family’s recommendations?

The stat highlights the importance of customer referrals. Even Forbes reports that the average small firm has received 60% of its revenue from referrals. Think how transformative these recommendations can be!

However, many businesses face struggles to generate these referrals. If you’re also experiencing the same challenge, you are in the right place. 

Here, we’ll explore 10 easy ways to get referrals from customers. Hope these tips will help your business.

What is customer referral?

A customer referral is when a satisfied customer recommends a product or service to others.  As it is based on personal experience, it is considered a powerful form of marketing.

A great example of how businesses can effectively use the power of referrals comes from Dropbox. When Dropbox launched, it used a very effective yet simple customer referral strategy to grow its user base.

They did not go for traditional marketing. They offered existing customers additional store space. However, that reward came with a condition.

The customers only got the extra space if they referred Dropbox to others. Both the referrer and the new user would get extra storage space.

That approach created a win-win situation for both parties. By combining customer satisfaction with marketing, Dropbox effectively expanded its user base. 

Customer referrals can create mutually beneficial situations for your business as your loyal customers.

Why are customer referrals important?

Customer Referral is a smart marketing strategy to build a loyal customer base. Because Word-of-mouth marketing has a higher success rate than traditional marketing strategies or paid advertisements. 

Customer referrals are effective because this is more trustworthy than traditional advertising. Before we start discussing how to get referrals from customers, let’s examine why it is important. Here are the reasons:

• Cost-effectiveness: Customer referrals are more cost-effective than other marketing strategies as they depend primarily on existing customers’ recommendations. Most of the time the only cost can be a small thank-you gift.
• Enhance customer loyalty: Generally, in a first meeting, we need to prove our trustworthiness. But when your potential customers refer others to your products, you don’t need to prove anything. Because the referrer already gave an idea about your product. That gives you credibility. 
• Increased customer engagement: Encouraging your customers to participate in referral programs and give rewards for doing so can increase engagement with your existing customers.
• Larger sales: Referral-based sales often lead to bigger deals. The referred customers were more likely to purchase higher-end models or add premium features. This contributed to larger sales compared to customers who came through traditional marketing channels.
• Increased referrals: Referrals bring more referrals. A client who came to you through recommendations is more likely to recommend others. This process will create a continuous growth cycle for your business. 

How referral marketing works?

Referral marketing is one of the fastest ways to generate leads. It utilizes the client’s trustworthiness towards the product very well. The simplicity of customer referrals makes them incredibly appealing.

You can request your clients to recommend you to their contacts. In return, you reward your clients with gifts such as discount codes, free products, or gift cards.

Loyalty programs can drive referrals by providing customers points for each purchase, or successful referral, which they can redeem later. When creating a referral, please remember it is an integral part of the customer experience.

This should be included in every stage of the customer journey, starting from the website navigation to the checkout process. Integrating email marketing and other online platforms with referral programs can help track and measure referral activities. 

Additionally, referral marketing works by gathering trust and maintaining good relationships with your clients. In this process, your satisfied customers turn into your brand advocates which helps to streamline your business and organic promotion.

How to get referrals from customers

Many strategies can help to get referrals from customers. We’ll uncover the secrets to getting maximum referrals from your satisfied customers. Let’s start by sharing 10 easy ways to unlock the full potential of customer referrals.

1. Deliver exceptional customer service

No matter whether your business is small or large, delivering exceptional customer service is the most significant criterion for any business. This is the foundation of customer referral. 

Be polite, punctual, and responsive towards your customers. Because if they are not happy with your service, they won’t refer your product or company to anyone. So, it’s really important to keep consistency in delivering excellent service to your customers.

2. Recognize your existing clients

Recognizing your existing customers will be an effective way to get more referrals. Try to reach out to the clients who had positive experiences with your brand. Ask them if they’re fine to recommend you to their friends and family needing similar services. 

Offer them a discount, a free product, or an incentive. When a referral comes through them, don’t forget to follow up and thank them for recommending.

Because a simple acknowledgment can go a long way in bettering the relationship and encouraging future referrals.

3. Ask for a referral at the right time

Asking for referrals from your clients at the right time is so important. Because when you ask too soon, it may come across as desperate.

On the other hand, waiting too long can lead the clients to forget about the details of their experience.

The perfect time for asking for a referral is after a customer has had a scope of using your service or product and is satisfied with that. You can confidently make your request at that time. 

Motivate them to refer their friends and contacts who need your services or products. You can offer them a reward for bringing in new customers. If you do it at the right time, the chances of receiving more referrals and expanding your business will increase. 

4. Create a customer referral program

Creating a customer referral program eases the process of asking for referrals from existing clients.  By providing personal links, referral coupons, or anything else,  this program allows your loyal customers to share the link with their contacts. 

This program strengthens your relationship with your loyal customers as well as enhances the growth of your business.

Prioritize the product and user experience. Because sometimes the most significant referral marketing is integrated with the overall user experience. 

You just need to ensure that your customers know about your referral program. Use a note on the invoice, mention it in your email signature, sign by the cash register, or use multiple social media platforms, don’t hesitate to spread the news.

5. Show your gratitude

Show your gratitude towards your customers as they refer you. Appreciate their efforts by giving a simple “thank you”. You can do this in many ways. 

You can send them a thank you card, or offer a coupon or special discount. Make them feel valuable and appreciated. This plays a significant role in spreading the word about your brand. 

When customers get importance, they are more likely to refer your business to their contacts. Show your gratitude by keeping consistency in your services. 

6. Establish relationships between customers and your brand

Establishing relationships between customers and your brand involves creating new opportunities for meaningful interactions. This factor enhances loyalty and engagement. 

Customers are more likely to shop from the recommended brands that meet their expectations. To make that happen, they need to know your brand’s identity and values as well.

Building relationships with your customers makes this process easier. Be careful that you do not overshare. Because giving too much personal opinion can make them uneasy and you seem unprofessional. 

7. Provide quality content

Providing quality content is an effective way to increase customer referrals. In this competitive marketing environment, you must do something significant/exceptional to be noticed.

When you provide original, quality, creative content that your customers can’t find anywhere else, can be a game-changer for your business. This might be blog posts, videos, webinars, podcasts, or other helpful resources.

8. Gather feedback and take action on it

When you want a referral, you have to accept all feedback whether it’s positive or bad. Do surveys to know what you’re doing right and what to improve. Make sure that the survey questions are unbiased and useful to you. 

Now take actions based on their feedback. Doing so will enhance your credibility and the image of your brand as it shows their opinions matter to you.

So, gathering their feedback and taking action is essential to ensure they have a positive experience with your service or product.

9. Leverage digital marketing strategy

To get more customer referrals, leverage a digital marketing strategy. You can reach a wide range of customers through various channels & platforms.

From email marketing to social media marketing and search engine optimization (SEO), digital marketing makes it happen to reach customers for your services.  

By implementing proper marketing strategies, you can inform your customers about your services, products, or offers. These tactics will increase your chance of getting referred by your potential customers. 

10. Recommend other companies

When you request a customer to refer people to your service or products, in return they can also ask for the same, right?

By providing referrals to your potential customers, you’ll make them believe that they’re also valuable to you. 

But be careful about the companies or services you recommend to them. Make sure that the companies are as reliable as you. Otherwise, your customers can end up blaming you. 

Wrapping up

Hope you understand through the blog that customer referrals are one of the best ways to grow your business. With a little effort, you can set up a successful referral program.

By recognizing the significance of referrals, build a great relationship with your customers, show your appreciation towards them, and expand your business.