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The Power of Referrals

01 Jul 2020

The most effective free way to grow your customer base is through referrals. It is likely that you’ve already benefited from word of mouth or recommendations. If you do a great job for your clients, they are bound to encourage others to use you too.

But how many businesses strive to get referrals and use these to their advantage?

The answer is not many.

But why not? It is so important. How many of you have a growth target for the year? Say you would like to grow your business by 50%, you could gain this without having to spend money on paid advertising or marketing simply by implementing a referral system.

Not every single one of your customers will refer a friend, but people are more tempted to try when an incentive is in place such as the referrer receiving a discount, a freebie or a free trial of some sort.

Let’s look at the maths. If you want to grow your business by 50% by the end of the year and you have 10 customers, if you can get every single one of them to refer a friend and you manage to convert just 5 of these into sales or make them customers then that’s your 50% growth. Simply tap into the goodwill within your existing customer base and save yourself money on advertising fees.

It is always important to remember that people do business with people. People are more likely to go with a referral from someone they trust and have a connection with rather than a cold lead.

Click the button below to download our blank growth calculator table, enter the amount of customers you have today and discover how much you could grow by based of the percentage of customers you receive a referral from.

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