When one ventures into entrepreneurship, in most cases they expect that it is only through advertising and marketing that they can get customers. Most entrepreneurs over the years have spent tens of thousands in branding and other forms of marketing but still fall short in getting new business to their entrepreneurship. Most entrepreneurs have over the years accepted that the single best new customer is one that has been referred to the business by other customers who have experience with the entrepreneur. According to a survey done by research companies around 60% of most companies’ new business comes from referrals. Getting a referral is good because, the referred customers is likely to spend more than the one which the business gains from other measures. So how can an entrepreneur maximize customer referrals?
How To Generate More Referrals
The two most popular methods of referrals are word of mouth as well as partner referrals. The word-of-mouth referrals are the ones that are usually common and the is simply basic. One customer who has had a good experience with the business tells other people about the product or service that the business is offering. Partner referrals on the other hand comes from an entity with a list of audience promotes the business’ products and services. How can one get the best out of the referrals?
Serving Your Clients
All the best referrals out there start with how well the clients who come to the business get served. This may seem easy to all first time entrepreneurs who haven’t really related with many entrepreneurs. At times most businesses fail to get referrals simply because after they get the best customer service from one part of the business let’s say the owner then get the worst service from the old lady sited at the front desk who is supposed to the receptionist. That for most people automatically ruins any chance of getting the referrals from most the clients.
Motivate The Customers To Refer
One thing that people should never forget to do is to motivate the clients to refer the business after having their own experience with the business. Traditionally this has been done by monetary reward. But as much as that is the case, the whole process has to make an impact to the whole idea of getting the referrals. Most entrepreneurship have failed because they don’t provide the reward that will encourage their clients to refer the business. If a business man wants the referrals they should never go cheap with the rewards to the customers who refer their business to other clients.
Recognize Your Customers
If any entrepreneur wants to kick the referral campaign into frenzy is they should look to recognize the customers who have sent referrals the way of their business. Social media and newsletter are all good ways to start the process. Write an article on social media and about how amazing the person is and make sure the person is thanked on the article for the referral. An entrepreneur can go a step further by giving the customer a reward at a customer appreciation event.
Remind the Customers
The last part of the process to anyone who really wants the referrals should be to remind the customers to refer you to the people like them who may be in need of your products and services. Remind the customers politely at the end of the invoice to refer the business. But this strategy will only work if the customer gets satisfied with the service they get from the business as it will be easy for them to refer clients to products and services that they have trust in.
In short, Referrals are fast becoming the best way that any given business will get new business to come their way. By applying good customer service to one’s business that will almost definitely ensure the referrals keep trickling in. but one part alone can’t ensure that, good customer service must be accompanied by continuous reminding of the customers to refer the business as well as recognizing the customers who refer the business and also how the entrepreneur choses to motivate the customers to refer their products and services to the outside world.
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