Every small business owner knows the importance of repeat and referral business. We know that without referrals, the growth of a business can be seriously impacted! So, how do you ask for a referral? And just as important, how do you know that your customers are going to willingly give you one?
By developing a successful referral strategy, asking for and receiving referrals will become an everyday part of growing your business. And the more referrals you receive, the better business will be!
Rather than using outdated referral practices, using video with BombBomb will create personalized referral strategies that are going to make you more memorable. Personalized referral strategies will also allow your business to continue to grow successfully, without the added expense of trying to drum up new customers.
Watch below for a quick look at how you can use video to help you create personalized referral strategies.
After you’ve watched the video – continue reading for a more detailed look at why referrals are so important, how the cycle of the referral works, as well as for some best practice methods to help you create a unique and successful referral strategy.
Why Referrals Matter
According to a recent study by McKinsey & Company, referrals matter so much to businesses because word of mouth is the driving factor behind 20 – 50% of all purchasing decisions. The problem is, products and services are easy to find, but the amount of information we have access to is overwhelming! It’s easier to ask someone we know for a recommendation. And that’s why Hubspot reports that 83% of us rely on referrals from family and friends for making purchasing decisions.
“People influence people. Nothing influences people more than a recommendation from a trusted friend. A trusted referral influences people more than the best broadcast message. A trusted referral is the Holy Grail of advertising.”
– Mark Zuckerberg
To dig a little deeper, referrals can come from any person in your sphere of influence – those current customers, business contacts or friends – you have relationships with, and there are a few very important reasons why they matter so much.
Referrals Create Expectation
Referrals from people we know create an expectation that the experience we’re going to have will be a good one. This almost inevitably starts off the new customer relationship on a positive note.
Referrals Breed Referrals
There is a cyclical nature to referrals and that is, referrals breed more referrals. People who enjoy working with you will continue to refer you to new customers.
Referrals Reaffirm Positive Beliefs
Sending a referral reminds your customer why they work with you. When they’re telling someone, “I have the perfect person for the job!” they’re reminded of that positive experience and you stay top of mind.
Referrals Cost Very Little
According to Hubspot, the cost of acquiring new customers has increased by 50% over the past 5 years! Referrals require minimal financial investment – if any at all. You can expect to invest time, energy, and effort – but a good referral strategy will cost you very little financially.
Referrals Increase Your Closing Rate
When a consumer receives a referral, the expectation of a positive experience is there from the beginning. It’s more likely they’re going to choose the positive experience as opposed to an unknown one.
Now that you know why referrals matter so much, let’s go over the important steps in the referral cycle you should follow to create a personalized referral strategy that will transform your business!
Cycle of the Referral
Step One: Exceed Expectations
If you aren’t doing your very best, people aren’t going to refer you! Lay the groundwork for asking for a referral by providing a positive customer experience upfront.
Step Two: Engage
By using video with BombBomb, you’re able to continue to keep people engaged long after that initial relationship begins. Staying face to face with them will provide that human connection essential to any relationship.
Step Three: Use Multiple Channels
When you’re working on nurturing those relationships you’ve already put so much effort into, go the extra mile and use social media or text in addition to email. Remember, not everyone uses the same channels of communication. It’s so important to consider what works for others, not just for us.
Step Four: Create Avenues for Advocacy
Show your customers how you can be of value to them in other, long-term ways. It’s important to engage your customers over a period of time. That way, when you do ask for a referral, it doesn’t feel like it came out of nowhere.
Watch Ethan Beute, Chief Evangelist at BombBomb, explain how to use video to create different avenues for advocacy in this video …
Step Five: Make it Easy
Now it’s time to request a referral, so make it easy on your customers to provide one! Use your BombBomb Chrome Extension or mobile app to send a quick video email or reply to a social media post, and then follow up with your request for a referral.
Step Six: The Ask
Hand in hand with step five, when requesting a referral – give your customers the reason you’re asking for the referral and be specific. Why are you asking? Who are you in the best position to help?
It’s also really important to provide clarity in your request. A great way to do this is by including a CTA or call-to-action in your video.
Step Seven: Say, “Thank you!”
Once your customer has given you a referral, take a moment to send a video to let them know how much you appreciate the time they took to send a referral. Gratitude should never be left out of the referral cycle. If those in your sphere of influence understand just how grateful you are for a referral, they’re much more likely to give you another.
So now that you understand the cycle of a referral, let’s talk about some best practices for the actual referral request!
Best Practices for Referral Requests
A one-minute (or less) video will allow you to make that human connection. It also demonstrates that you respect the time of your viewer because a video can be consumed at any point during their day.
Begin the asking process by practicing gratitude and saying, “Thank You!” Be genuine and allow your customers to feel your gratitude and sincerity.
Remember to Ask
After you’ve said thank you, remind your viewer of your value to them and that you can continue to help them. Then ask if they know anyone else you can help as well. Don’t be vague in your language and be sure to make it easy for them to reply.
What Should You Do After Receiving a Referral?
Say, “Thank You”
Once you’ve received a referral, let your customer know just how much you appreciate it.
Send a short video with an authentic thank you and let them know how it’s going with the person they referred. If you include your customer in the process, they’ll know you didn’t drop the ball and it’s more likely they’ll refer you again in the future.
Need Additional Guidance for Personalized Referral Strategies?
For more resources on referral strategies, we’ve included some links to help you on your way:
And if you want to learn more about Personalized Referral Strategies That Will Transform Your Business, we’ve embedded a full webinar below…