Are referrals really that important?

 

Companies are always in need of more business. More business equals growth, which is the ultimate goal. In order to generate this new business, you need to continually fill your pipeline with new leads and then convert those leads into clients. For some businesses it’s a struggle to develop and fill their pipeline. Maybe you feel as if you’ve run out of options and your prospect pool is dry? One surefire way a business can fill their pipeline is through referrals. Generating referral business is a cheap, effective way to grow your prospective client pool. Here a few tips on how to increase your referral network.

Ask. The simplest way to increase your referral business is to merely ask. Current clients may not know you’re looking for referrals unless you ask.  By requesting referrals you’re giving current clients permission to give your name out to possible leads.

Recognize. When a business decides to do you a favor and send business your way, you can’t forget to thank them. Give their company a shout out on a social platform or newsletter. This will show your appreciation and also could give an increase in business to their company.

Incentivize. Incentives, whether monetary or not, will increase the amount of referrals you receive. Most companies aren’t in the business of working for free. Incentives are a good way to show your clients that you are serious about getting these referrals and putting them to good use.

Make it simple. The easier it is to refer a company to you, the referrals you’ll receive. A simple link in an email or other easy form of referral will increase the likelihood of earning a referral. The less time it takes to mention your company the better.

You get what you give. One of the best ways to earn a referral is to give one. A current client will more likely reciprocate by giving you a referral back. They will appreciate the gesture and as you help each other out, you will develop a stronger connection.

These are just a few simple ways to increase the amount of referrals you receive. As always, the best way to really earn your referrals is to conduct good business. The better your reputation the more companies will want to work with you.