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Building and maintaining customer relationships is vital for businesses to thrive. One of the most effective ways to attract new customers is to get referrals from loyal customers who continue to purchase your products or utilize your services. When a customer recommends a business to friends and family, there is a built-in sense of trust due to the personal relationship which is something hard to achieve through advertising alone. But how can you encourage your customer base to make these referrals?
One way to identify potential customer advocates is by using a Net Promoter Score (NPS) survey, which measures customer loyalty by gauging how likely a respondent will be to recommend a company, product, or service. Customers who are highly likely to provide recommendations are the best candidates for promoting your business. Once identified, you can reach out to these potential advocates and ask them directly about providing referrals. For a small business or freelancer, this might involve simply contacting clients after completing a job to remind them of the value you provided and let them know that you are always interested in new clients, they might send your way. For larger companies, a customer referral program may include an invitation to participate, incentives for providing referrals, and a referral template that customers can send to their personal or professional networks, simplifying the process for them.
Here are the basic elements of a referral program and steps to take when implementing one:
- Develop a Referral Program Headline: A catchy headline can help grab readers’ attention and make them want to learn more. The headline should provide a simple and enticing message for the customer advocates you are targeting. This headline can be used on your website, in an email invitation, or as part of social media messaging. Keep the headline brief, personable, and focused on incentives. For example, “Help us help you. Free [item, discount, or other incentive] for every referral made.” Tailor your messaging to fit your company branding and customer demographic.
- Write an Invitation Template: Create an email template (or download the one above) that invites customers to participate in your referral program. Use the headline (described above) as the subject line for this email message. Again, emphasize how the customer will benefit from promoting your business. Get to the point quickly and provide a clear call to action to make it easy for customers to join. While you want to be concise, the message should also be personable and similar to an exclusive invitation for insiders. Depending on your needs, your email invitation can be geared toward a mass audience or specific individuals. Alternatives to email include printing the info on receipts or distributing invitations via social media.
- Provide Customers with a Referral Template: Once customers have agreed to provide referrals, you can offer them a template to pass on to their friends. This is similar to the initial invitation described above in that it explains the benefit to the potential customer and provides a call to action. Keep in mind that the template should not sound like a sales pitch. Rather, the message should feel more like a personal message while providing info about what your company has to offer. This approach can involve an email template or social media post designed for customers to share.
- Get Your Website Ready: Both customers and their referred friends will likely be directed to your website for further information. Create landing pages geared toward both audiences, one related to joining the referral program and the other for new customers. Make it easy for customers to sign up, be clear about the incentives offered, and use descriptive language and images to draw in viewers.
Soliciting referrals can help grow your business, but it may take time to see the benefits of starting a referral program. Be patient, and think of it as a long-term strategy. Also, be sure to track which customers turn down an offer so that they can be removed from your list — you want to improve and increase customer relations, not make them worse. Finally, providing referrals can be a reciprocal action. In other words, offer to provide referrals for businesses connected to your own network of contacts, whether personal or professional, to encourage them to do the same for you.