The Power of Referrals in Lead Generation
Imagine a form of lead generation that involves reduced time, energy and money. Referrals are capable of combining all of those things while still managing to increase sales. Instead of doing extensive outreach to find new opportunities and initiate relationships, you can instead capitalize on your existing customer base to improve your lead generation efforts.
Instead of making lots of calls, sending countless emails and reaching out at various events, you can take the hassle out of lead generation with referrals. One of the best qualities of referrals is this reduced amount of work on your part. When you are incorporating referrals in your lead generation strategy, you move the focus from initializing relationships to maintaining existing connections. This eliminates the need to inform customers about your business and encourage them to believe in your value. You can instead rely on customers who have already experienced your great products or services and can happily vouch for your quality and reliability.
It is difficult to initiate a relationship with a lead. Not only do you have to get them interested in your company, but you have to build their trust. Building trust will most likely take more than one conversation, which means you will need to allocate time to developing a strong connection. With referrals you can have your current customers generate this trust for you. If a prospect is hearing about a great experience that a friend or family member had with your company, they will be much more likely to believe in your company versus listening to a sales representative. Nielsen proved this point when they found that 77% of people find their family and friends to be the most persuasive form of advertising. Capitalizing on the strong relationships between your leads and prospects can drastically reduce the amount of work you do while still increasing sales.
Did you know that 65% of business comes from referrals? This statistic alone proves the value of referrals. Several other facts and figures have related the benefit of utilizing this sales mechanism, but over 50% of companies miss referrals because they do not have a system set in place. Instead of simply hoping your leads will share their positive experiences with prospects, you will need to do some work to get them to be a source of outreach. A great way to get a referral system going is simply asking for referrals. If you don’t want to be as direct, you could instead create an incentive program that encourages leads to vouch for you company. There is also the option of utilizing customer service surveys where you designate a space where reviews can be written. All of these options will not only increase the amount of new prospects coming your way, but can help you enhance your website with honest testimonials for others to see.
While some companies struggle to generate leads and increase sales, you can separate yourself from the crowd by taking advantage of the time-saving, sales-inducing lead generation strategy known as referrals. When interacting with these referred leads you will know that they are informed and interested, which will allow you to experience better relationships and results.