Referrals are the Way to Go
Many of you will likely agree from personal experience that referrals are the most efficient means of producing new sales.
One expert found that within the financial industry, one sale is gained for every 3.3 referrals. In comparison, it takes 10 seminar attendees, 50 cold calls or 60 letters to generate one sale.
Furthermore, according to Paul and Sarah Edwards (authors of Getting Business to Come to You), up to 45 percent of most service businesses are chosen by customers based on the recommendations of others.
So how does a business get more referrals? Undertake an intentional effort to get the right people talking about your company and your products and services.
Chicago-based Gaebler Ventures recommends these five steps when developing a referral program:
- Select the best clients
- Ask them
- Provide promotional tools
- Develop rewards
- Track results