Maybe you’ve already tried pay-per-click campaigns and sponsored Facebook posts but have found the results disappointing. Chances are that your digital marketing efforts have increased visitors to your website thereby giving a slight boost to your revenue—but that’s no longer enough in your eyes.

You might be asking yourself how to grow engagement to achieve a significant boost in your bottom line. A good strategy for acquisition and retention is providing people a means to refer their friends to your business and maybe let them be rewarded for their efforts.

Word of mouth remains a powerful method for growing. It turns your happy customers into advocates for your brand at a lower cost compared to other channels. The next question is how to encourage people to refer you then get their referrals to purchase from you.

How to develop referral sources

Strategic partnership

When businesses complement each other, it’s a smart move to generate referral leads through strategic partnerships. For instance, if you provide web development services, you may partner with a graphic designer to refer customers to each other since many aspects of your projects tend to overlap.

Though it makes most sense to make arrangements between complementary businesses, it’s possible to do it in a less formal way too. Let’s say you encounter a well-networked company, so establish a solid connection with the owner or the sales representatives to ask for referrals.

Customer relationship software (CRM) is useful for organising information about your sources along with actual leads and customers. One of the best CRM solutions you may use is Salesforce, which offers a wide range of features including options for social collaboration.

Referral program

This is a promotional marketing method where a referrer receives a reward in exchange for sending business your way. For example, your program might offer a 25% discount on their next purchase when they refer someone. Sometimes, both referrers and new customers get something of value, such as gift cards.

Referral programs don’t only work when you have a retail business or for current customers. An SEO firm, for instance, might provide a smartwatch or any other tech gadget for anyone who sends leads to you that turn into paying clients.

Leadshare group

These are network associations that meet regularly to build connections, hone skills, and pass leads with each other. Usually, there is only one vertical per group and they have exclusive access to referrals from other members.

For instance, if you are a digital marketing agency and you join a leadshare group, it’s a given that you’ll be the only marketing company there. The understanding is that any marketing or advertising-related referral is automatically given to you.

When the time to make a referral arises, members recommend their clients to the appropriate business or member of the group. Most of the time, groups use a point system to maintain their eligibility for membership. You typically earn points for bringing guests or passing referrals.

Representative request

A simpler way to get leads is by having your sales team request your customers for referrals. A statement like, ‘If you’re happy with our service, we are happy to offer the same for your loved ones so pass along the information to them today!’

This may not be possible or appropriate for every customer. To determine which customers to contact for referrals, we suggest that you use the Net Promoter Score (NPS) method which classifies your customers into categories according to their satisfaction with your business.

How to generate more referral leads

Outside of developing referral sources, there are other things you may do to get more referrals and make your business more referable.

Identify good referrals

Like defining an ideal buyer type for your business, tell your customers and partners what makes for the perfect referral. Focus on the qualities that make for an ideal referral. For instance, say ‘a tax accountant looking to cut costs for invoicing’ instead of ‘anyone wanting to cut invoicing costs’.

Provide an incentive

A solid way to develop referral sources and generate leads is by rewarding referrers with promotional deals, gifts, and more. Check what the guidelines are for providing incentives though. In some countries, for example, referrers have to be licensed providers before they get monetary compensation.

Maximise positive reviews

The best time to ask for a referral is right after a customer expresses their satisfaction or gratitude towards your business. While their positive experience is fresh in their minds, request them to share your offerings to their loved ones so they may receive the same positive experience.

Exceed their expectations

Make it easy for people to refer your business by going above and beyond for your customers. Aim to provide fast response times when they message you, add a supplemental service or product at no extra charge, and be active on your social media profiles.

Make email templates

There are some leads where you have to make an effort to introduce yourself, but it gets complicated when there are many of them. Simplify the process by creating a template that you and your team may use when sending emails.

Recognise your sources

Express your gratitude to your sources for all that they do. Public recognition, like a shout-out on social media, encourages them to give you more referrals while also exposing their brand to your audience. Show your appreciation periodically, like during Christmas or other holidays.

Refer other businesses

While you’re already doing this with your partners and leadshare groups, it’s possible to expand your network further by referring other companies who aren’t already affiliated with you. Even without formalities, by referring business to them, they are likely to tell their audience about you too.

Growing through referrals

One of the best ways to grow your business is by knowing how to get referrals. Referrals come naturally when people feel good about what you’ve provided and want to share it with others. Sometimes, you need to make an effort too so you may need some expert help.

If you’re thinking to hire a virtual assistant to aid you with lead generation, we at Remote Workmate are ready to connect you with suitable candidates. We are an offshore staffing firm dedicated to connecting global clients with remote workers.