84% of B2B decision-makers begin their buying process with a referral. In 2019, Forbes also termed referrals "the most valuable form of advertising" since referred prospects showed a higher potential of retention and loyalty.

The numbers don't lie. In this blog post, we will guide you on how to implement a referral program for your business and why you need one.

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6 Reasons why a referral program is important

Referrals are all about using word of mouth and recommendations to grow your customer base. But why should you implement a referral program? Are there any benefits? Let's see.

Here's why referrals need to be part of your sales strategy:

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Prospects trust information from people they know     

Would someone you know and trust mislead you? Most likely not. That's why 92% of consumers trust people in their circles to influence their purchasing decisions. 

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If you focus on convincing your prospects to refer their friends, you will have higher customer relation rates and more loyal consumers.

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Precision targeting

Your advocate customers know what product or service you offer and also understand how it would benefit the people around them. As a result, they will bring in targeted customers without you having to run a costly marketing campaign.

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High-value customers

A referred customer is 18% more loyal and has a 37% higher retention rate than a customer acquired elsewhere. This is because a recommendation from someone you know is trusted and more reliable than an advert.

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It's a measure of customer satisfaction.

In our previous article, we learned that 91% of satisfied customers are highly likely to give referrals.

Often, referral programs that perform outstandingly well and have many advocates indicate high levels of customer satisfaction. This also shows that your company is handling business right in the customers' eyes.

Contrastingly, if the referrals aren't coming, you need to obtain feedback from your promoter customers and improve their experience.

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Increases customer engagement

You might have to incorporate other techniques such as email and social media marketing to woo a prospect in a referral program. Constantly communicating with your prospects helps build trust, reputation, and stronger ties between both parties. 

You can also use promoter feedback as testimonials on your landing page.

Additionally, communicating with your clients regularly also increases your online presence. You should be available to give instant answers to prospect queries, increasing conversion rates eventually.

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How to implement a referral strategy into your sales process

Here's how to execute a referral program into your sales strategy:

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Identify your promoters

A Net Promoter Score (NPS) is a metric used to measure customer loyalty. You simply send a survey question to your customers, asking them how likely they will recommend your product/service to their peers.

On a scale of 1 to 10, customers who rate you 9 or 10 are the promoters of your business – they are most likely to refer others.

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Engage your promoters

Now that you know who is willing to recommend you to their friends and colleague, it's time to plan how to follow up with them and ask for a favor. Develop a plan that makes it easy for them to make referrals.

Ask your customer marketing team to reach out to the promoters individually to see if they would be interested in referring their friends to you.

It isn't recommended to ask for referrals from customers who have just been onboarded      – but you can. Alternatively, consider customers who've used your product or service for a while and are willing to share the value.

You can also offer incentives to promoters of your product.     

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Use the promoter feedback as testimonials on your landing page

Social proof and testimonials can boost conversion rates by up to 34%, besides building trust and increasing the credibility of your business. 

You can ask for testimonials from your promoters when reaching out to them as well. Just ensure you ask the respondents for permission to use their comments as testimonials. Alternatively, you can ask them to write a review of their experience with your business. 

88% of consumers trust reviews from previous users as much as they trust recommendations from someone they trust. So pin them on your website as case studies to influence new referred prospects and simplify their buying decisions.

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Provide value to your referrals

Do not spam your newly referred prospects with promotional offers and adverts. Instead, you should nurture their growth by grabbing their attention first. Then, provide them with relevant and valuable content that addresses their needs.

Use a much friendlier tone when communicating with referrals – don't treat them like cold calls! They've already expressed interest in your business, so you shouldn't irk them by starting over the conversation.

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Incentivise new referrals

Offering good customer service isn't enough to make your new referrals convert. Instead, offer them an incentive such as special discounts, gift vouchers, or donations.

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Follow up with your customers

It's essential to get in touch with your client base, especially new customers. Ensure to express your brand humanly. Here's how you can stay in touch and build long-lasting relationships:

• Use Google Alerts to be notified about their activities online
• Engage them on LinkedIn to be updated on their statuses and job changes
• Follow them on Twitter and Facebook to learn about their interests
• Subscribe to their blog

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Boost your sales with referrals!

Referrals cost almost nothing to acquire, yet they are a valuable asset to your business. The best part is that developing a referral program shouldn't be a hectic process.

With a few clicks, you can set up a beautiful sales pod where you can personalise all your pitches and communicate with your sales leads effectively. This is where trumpet comes into play.

It enables you to achieve all these and track your analytics to determine how your sales are performing. So sign up now to blow your trumpet!