Referrals are such powerful tools for your business. Looking at my own business, I know that over 98% of my clients have come from other customers. It’s a staggering (and gratitude-filled) statistic!
Yet, so many business owners aren’t using them in their business. So if you’re currently wondering what makes them so great, here’s a breakdown of why referrals are such an important business tool.
Reputation is everything in the online world
Reputation takes a while to build for any business. But word of mouth referrals helps to cut down that timescale. Social proof is such a powerful technique – it’s why there are so many review sites around! People love sharing their opinions and recommendations with others, which is why those ‘do you know anyone who’ status requests get so many responses. And from a business owner point of view, it feels AMAZING when you get recommended by your clients.
Referrals are a great way to get new clients
The beauty of a referral is the trust is already there. They have a firsthand account of how good you are and already know what you do (and often, how much it costs). This makes it so much easier for you to convert – they’re already warm and know what to expect.
They result in higher sales and conversions
If a referral is easier to convert, it goes without saying that your conversion rate will be higher too. And that means your sales numbers will be on the up, as well.
Referrals often make for better clients
A referred client also makes for a better client. They know what to expect and the type of results you can help them achieve. They often also have increased loyalty, as they value what you do and the solution you provide for them.
They’re a strong form of free advertising
Not all free advertising is created equal. Word of mouth is such a powerful method of promotion – whether you’re being recommended privately or publicly on social media. People value social proof and want to know that you’re able to do what you say you do. When it comes to free forms of advertising, word of mouth is one of the best.
As you can see, referrals are such a powerful tool for your business. Yet, so many business owners shy away from asking for referrals, which is a shame. Not only are they missing out on all the above benefits, but they’re also slowing down the very growth they’re looking to achieve.
But if you’re looking to ramp up the intention to ask for more referrals, make sure you’re being consciously productive with your time. Set aside a regular chunk of time to actively ask for referrals from current and previous clients. But also ensure you’re putting systems in place to regularly and automatically gather feedback and referrals too.
If you’re wondering when you’ll have time to ask for referrals, let us help! Your business is unique, and we can provide the tailored virtual administration solutions you need to help free up your time to do the things that matter – whether that’s taking time out to spend with your family or ask for referrals. So get in touch, and let’s discuss options. You’ll find our contact information and our calendar booking link here.