September 17, 2013
LET'S GROW THAT BUSINESS
I know you work hard to keep your buisness running and growing, but time and again we see great companies missing out on a huge opportunity to leverage the work they've already done. How? By failing to maximizing their referral pipeline.
Big purchase items (like moving companies, home improvement, etc.) have the most to gain from referrals because word-of-mouth feedback from a trusted source (friends, coworkers, neighbors) builds consumer confidence. The sad fact is that most companies don't take advantage of this truly powerful sales opportunity.
Companies can reap serious rewards after they FINISH the job, if they put a few processes in place. Let's look at some numbers to see if this referral marketing thing is all it's cracked up to be.
WHY YOU SHOULD CARE ABOUT REFERRALS
Referrals are the lowest hanging fruit for business sales, but odds are that your moving company is one of the 80% of small businesses that don’t have a referral program in place.
The good news: Setting up a referral program is easier than you think. It will increase your sales, help you identify and better use key “touch-points” in your business, and improve customer service overall. Here are some referral facts and tips to help you maximize a powerful sales tool every business should be using.
DO YOU NEED A REFERRAL PROGRAM?
Here are a few referral facts to chew on that may help you decide.
- Easier Sales
You’ve already built trust with customers, help them to do the work for you. Even better, people are more comfortable with services recommended by someone they trust. (This is especially true if the product or service is expensive.)
- More Fresh Business
Jonah Berger’s book “Contagious,” he says that word of mouth is the primary factor behind 20% - 50% of all purchasing decisions.
- It’s Valuable
Tom Hopkins, author of “Sales Prospecting for Dummies,” says that no other lead source converts to sales at a higher rate than referrals, which close at 60 percent!
- It’s Valuable A Lot Longer
A Harvard study of 10,000 bank customers found that referred customers were 18% more likely to stay with the bank, and generated 16% more in profits. (Earning the bank an extra 60% over the $40 referral “bonus” the bank offered.)
Are you missing major sales opportunities? Probably! Would you like to capitalize on the work you've already done and lock-in more sales?
If so, check out my next post:
6 Key Tips That Will Help You Lock-In More Sales With Referrals
Categories: Marketing Plans