A simple strategy for growing profits, that you don’t want to overlook
There is one business growth and marketing strategy that’s timeless and super effective.
While it’s not considered cool or flash, it does however work very well across all industries – both online and offline.
I am talking about referrals, and more specifically, referral generating strategies.
These are strategies, that when implemented using a system, will multiply the number of high-value referrals that your business attracts.
Referred customers and clients are generally the best types of people to work with – this is because our best customers and clients will associate with and refer other people of similar quality to them.
Generally speaking, when someone is referred to you, they will:
- Be easier to deal with
- Buy faster
- Keep buying from you for longer
- Be more profitable
- Be four-times more likely to refer others to you
Putting yourself in your customer or client’s shoes for a moment – why would a customer or client of yours, want to refer other people to you?
As humans, we all have a degree of self-interest in how we behave.
In some industries it’s appropriate to offer cash incentives for referrals, but not so in others.
So, it’s important to understand the underlying motivations that cause our customers or clients to take action and refer new business to us.
First, there are benevolent reasons.
When you’re happy with the outcomes or results that a service or product has given you – then you will want those that you care about to gain those same benefits too.
The opposite of that is also true. You don’t want those who you care about to receive sub-optimal care, support or results from their product or service provider.
So, to look after those that you care about, you will make an introduction and refer your family member, friend or associate to the business / provider / person that you trust and that has already served you well.
It feels good when we help look after other people, when we help them reach their desired outcomes and prevent them from potentially negative situations.
The second reason and motivating factor that drives referrals focusses on the service or product provider that you refer others to.
This provider is probably engaged in a wide variety of marketing activities in their business. This may include social media, websites, advertising, industry / trade shows, PR, email marketing etc.
Each of these areas of marketing would have a varying degree of success for the business.
Each would require a varying amount of attention and resources from the business.
But, the beauty of a referral-generated client, is given the handful of benefits previously highlighted (including increased profitability and an increased likelihood of referring others to you) – the provider that’s able to increase their proportion of new business that comes from referrals, is the provider that’s going to be better placed to continue delivering great results for you.
Why?
Because that provider that is now gaining more clients from referrals, can now shift their approach to marketing.
Instead of that provider focussing and spending more and more on all sorts of different marketing activities, they can instead redirect and focus more resources on other areas of the business that are more beneficial for their clients. Including:
- Upskilling and training their staff
- Improving workplace culture
- Better research and development
- Better products and services
- Operational improvements
- Better support and better care for their customers and clients etc.
All of these benefits lead to improving the outcomes and results for their customers and clients.
So, it’s a win-win for the business and the buyer, when more referral introductions are made.
So, it makes sense to refer the great product and service providers who are looking after you.
That’s why it’s important to educate our buyers, so they realise and recognise the benefits of referring others to us.
Most people leave referrals up to chance and they hope that they occur. Sure, when you do a great job for your clients, some referrals will naturally happen.
But, to help your clients multiply the number of great quality referral introductions they make for your business – it’s important to take a deliberate approach to referral generation by introducing a simple, step-by-step system.
And, when properly implemented, this will turbo-charge referral generation in your business.
Referral systems grow and gather momentum like snowballs. So – the sooner you start, the better.
To learn more about implementing referral systems in your business, get in touch with your Partner or Associate today on 1300 10 10 45 or visit https://cmpca.com.au/contact-us/.