A Texas Tech study revealed that nearly 83% of consumers want to refer a friend to a person, product, or brand if they have had a good experience with the product(s), person, or brand. Still, it is only that 29% of them do make a referral. 

Referrals are vital for the long-term success of a business. Since it’s evident that people want to generate referrals, the question becomes apparent, “Why aren’t customers referring to people?” 

Here are some of the possible reasons: 

You don’t ask them to provide referrals

There are times when you are so occupied with your existing clients or working on other vital parts of your business that you forget to ask. If not, the main reason people don’t ask is that they are afraid of rejection.

But if you’re not asking for referrals regularly, you certainly are missing out on a significant source of income. According to that TX Tech study:

• 92% of the people trust the referrals that come from someone they know, and a substantial portion of those people said they much more likely to buy if a friend has referred them.

Solution – Ask for the referrals. Do it in a polite, creative way. Sure it will require you to get out of your comfort zone, but it will pay off in the long run, and besides, if they say no, you’re no worse off than you were if you hadn’t asked, but if they say yes, you’re further ahead.

Bad Experience in the Past

Perhaps your client had a poor experience with the referral process and outcome before and is unwilling to give it a shot again.

Solution – If an existing customer is unwilling to give you referrals, courteously agree to their decision and try to earn their trust back. Once you do so, your customers will start referring to people again. 

Good isn’t Always Great

It is not necessary that every customer is turning into a brand advocate for your business. Companies surely have to work hard to not only meet their expectations but to exceed them. Providing good customer service is what they expect at the last. You’ve got to go the extra mile! 

Solution – To encourage your customers to refer others, you have to go further than expected. Even a small thing can go a long way to create that “wow” factor. Figure out what excites them, what makes them feel appreciated, and then build a plan that involves word-of-mouth marketing.

With the help of NextBee’s exclusive referral program features, brands can turn every customer into brand advocates as the platform helps to increase 25% conversion rate through references.

Lack of relevant information

Every person is nearly at capacity these days, and society is flooded with promotional and marketing messages. Because of this, there is a high probability that the next time clients look for your services, they might not remember your information, including your phone and website.

Solution – Stay in touch with your former clients, so they don’t forget you. Contact will keep you and your brand in front of mind, making it easy for them to get back to you whenever they need your services or refer you to a friend.

What do you have for them?

If your customers have used your services or your products and they are happy with everything, great. But to request them to refer a friend or family member, you must have something in place for them to thank and reward them for their efforts. Customers look forward to an additional incentive for referring to someone. 

Some organizations provide the customers with lucrative discounts on their future services, a reward, or something equivalent to referrals. Sometimes though, a simple “Thank You” can be enough. 

Either way, it’s vital that you ask for referrals and then reward or acknowledge the people who help you grow your business. 

Conclusion

NextBee is a one-stop solution for all sizes of companies who are looking to incorporate a platform to flourish their business. With our robust feature-rich platform, you can get all the tools required to create an effective referral program.

To know more about our platform, schedule a free consultation today.