We all know that more sales should mean business growth and profit. We also know that each sale can require A LOT of work, even if you are using my Business Kamasutra methodology. While my method can position you to make sales soar, it still requires an investment of effort, as all successful relationships do.
But here’s one of my most valuable business tips that makes a lot of money with the same amount of effort - prioritize referrals!
Global Sales Analysis Research
Companies spend millions on advertising, but the factor that frequently drives a buying decision is word of mouth. Research by McKinsey & Company revealed that referrals drive twenty to fifty percent of all buying decisions.
Make A Client A Team Member
By asking a client to refer you to their network, you are changing the relationship dynamic. You have invited them onto your side of the “fence,” showed them you think they are influential and their opinion counts. This will excite them, increase their own sales with you, and their excitement will pass along with the referrals.
Referrals Create Referrals
Referrals create more referrals because when a referred person buys from you, they usually share the news when a referral turns into a positive experience. One client tells five friends, who tell five friends, etc. - a self-perpetuating marketing machine.
As your clients encourage their friends to purchase from you, they simultaneously self-affirm why they should purchase again from you. Their brain receives positive reaffirmation each time. Naturally, this influences the size of their orders too.
Low Budget Marketing
Referrals are one the least expensive sources of marketing available. When you train and develop a focus on a referral culture, you get a marketing service supplied by your clients - and they charge zero for it.
When combined with your automated marketing, you have systems that help you work smarter, not harder.
More Deals Closed
Research by Marc Wayshak, the international sales strategist, shows that up to eighty percent of sales are closed when a good referral is involved. Outgoing cold calls deliver a one percent closing rate, and incoming new contacts, non-referred, deliver fifteen to thirty percent closing rates.
A referral is done when someone believes your offerings are a good fit for whoever they refer you to. They are doing market segmentation on your behalf. This is also why referrals result in better, faster deals - it's a better fit.
With over eighty percent of clients willing to refer companies after a positive experience, it is easy to request referrals. Invest in customer service training to achieve positive experiences, and consider a referral program that benefits both parties in the referral.
Chat with me about building a highly valuable referral culture.