Nothing is more valuable than your existing client base telling their friends about you. When you have a strong offering and your clients are spreading the word, their trust is instantly built in. The likeliness of that person showing up to your business skyrockets once you’re referred and that’s the bulk of the battle. We’ve seen the percentage of prospects showing up to a business on a referral (once researching and visiting a website) in the ballpark of 40%.
A common objection we hear from our prospects all the time is “my business runs on referrals.” That is something that we will never argue. We work with some of the biggest names that run on referrals. We even have some businesses working solely off celebrity referrals. Like we said above, a good product and service will always drive business.
Run back to that number we mentioned: 40%. That’s an absurd number in terms of marketing and sales. To put it into perspective, cold outreach is usually under a quarter of a percent for even a positive response. Wild, right? But what about that other 60%?
So shouldn’t you pay most attention to that funnel of referrals if it’s so easy to turn them into clients? What steps can you take to maximize people that have heard of you from their friends?
- A reward for both parties. This is the basic first step. Be sure to provide an incentive to get the prospect in the door. Give a discount to both parties, or some kind of a cash incentive if the prospect jumps on board. This will entice both parties to walk in.
- Build up your Facebook check-ins. Near 70% of people trust their friends opinion on social media compared to the 10% for businesses. Gaining a check in is key. Offer a check in as a “raffle ticket” for a reward. Giving to charity for each check-in is beginning to gain popularity as well.
- Make sure your clients know. We’ve talked to businesses that pump out so many ads that the referral program gets buried. Make sure all of your clients know. Communicate it when they walk in, throw up flyers inside your business. Create some buzz that will let them know you’re welcoming more people!