Week 21 Get New Customers From Old Customers

As someone in network marketing, you certainly are no stranger to the benefits of getting referrals. EVERYONE wants referrals. Few people know how to get them! In this lesson, we’ll be focusing on some the beginner points of getting referrals from previous customers, and in future lessons we’ll dive deeper.

Let me share some referral statistics with you, first.

  • Referred customers have a 37% higher retention rate: According to a study by the Wharton School of Business, customers acquired through referrals have a 37% higher retention rate compared to those acquired through other means. (Source: Wharton School of Business)
  • 92% of consumers trust referrals from people they know: Nielsen reports that 92% of consumers trust recommendations from friends and family above all other forms of advertising. (Source: Nielsen)
  • Referred customers are 4 times more likely to refer others: A study by Goethe University found that customers who were referred to a business were 4 times more likely to refer new customers themselves. (Source: Goethe University)
  • Referral programs can increase conversion rates by 3-5 times: According to a study by the American Marketing Association, businesses with structured referral programs can increase their conversion rates by 3-5 times. (Source: American Marketing Association)

Luckily, there’s already a really good chance your company has some sort of structured referral program, these are the “Hostess” plans for any party plan company, and other companies have “affiliate” programs. An affiliate is a referral partnership program that pays in some way.

Now that you know more about referrals in general, let’s focus on one starter strategy to get your referrals rolling!

Strategies for Generating Referrals:

  1. Provide Exceptional Service: Delivering exceptional service and exceeding customer expectations will naturally lead to satisfied customers who are more likely to refer others to your business. Find out from your previous customers what they liked most about working with you. Continue to offer that level of service and find out what they would consider “next level” or above and beyond levels of service.
  2. Ask for Referrals: Don’t be afraid to ask your satisfied customers for referrals. Politely request them to recommend your business to their friends, family, or colleagues who may benefit from your products or services. The number one reason most businesses don’t get referrals is they don’t ask for them CONSISTENTLY! Even I’m guilty of this…. So, if you’ve found this course to be helpful in your sales, please refer another person from your company to this program! 😉
  3. Offer Incentives: Consider providing incentives such as discounts, exclusive offers, or rewards for customers who refer new clients to your business. This can motivate them to actively promote your brand. Ask your customers what they would like in return for referring new customers to you. Sometimes, they ask for nothing except that you’ll take good care of their friend/family member. Sometimes, they’ll ask for discounts or free products. Ultimately, you get to decide what you are willing to offer. (BONUS TIP: You don’t have to offer the same thing to everyone!)
  4. Create a Referral Program: Develop a structured referral program that outlines the benefits for both the referrer and the new customer. Make it easy for your existing customers to refer others by providing them with the necessary tools and resources. This means that when you ask for a referral, you must let the current customer know how to refer the new customer to you. (Please email me and your friend: jennie@badassdirectsalesmastery.com). I offer 30 minutes of complimentary private coaching session if your friend buys this program!

Best Practices for Referral Success:

  • Follow Up: Once you receive a referral, ensure prompt follow-up and provide excellent service to the new prospect. This will not only convert the lead but also strengthen your relationship with the existing customer.
  • Express Gratitude: Always thank your customers for their referrals, regardless of the outcome. Showing appreciation will encourage them to continue referring others to your business.

**If you are not getting referrals, then make sure to ask about this on the monthly group call! Second Thursday of the month, 10:30 a.m. Central Time, https://badassdirectsalesmastery.com/sales-accelerator-zoom