Every business owner knows that the best way to grow their business is through word-of-mouth. However, a one-size-fits-all, automated approach to asking your customers for referrals isn't always the best choice. We've found that small business owners want to take a much more personalized approach so that it reflects their relationships with their customers.
Here are 4 steps to asking for referrals from your customers:
1. Identify advocates for your business: Customers who have given you positive feedback and posted 4- and 5-star reviews are a great choice. You can quickly and easily segment them into a list to send the referral request or reach out on an individual basis.
Pro tip: If a customer has given you negative feedback or a low star rating, take the opportunity to reach out and see if you can resolve their issue. This could present itself as an opportunity to win back their trust.
2. Identify your referral incentives: These can take the form of discounts, credits, free products, additional services, other rewards, or cash. However, a University of Chicago study found that non-cash incentives are 24% more effective at boosting performance than cash incentives.
You can test different incentives and find what works best for your business!
3. Track your sources: You're probably already doing this, but make sure you're asking your customers how they found you. If one of your current customers shared your information, make sure to get their name!
4. Express your gratitude: A small thank you goes a long way! This may be where your incentive comes into play, but you can also send a quick, personalized email thanking them directly.
Want some more tips? Visit our friends over at Hubspot: How to Build a Customer Referral Program
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