How to Fix Why Your Customers Aren’t Referring People
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, but it is only that 29% of them actually do make a referral.
Referrals are vital for the long-term success of a business and since it’s obvious that people want to generate referrals the question then becomes obvious, “Why aren’t customers referring people?”
Here are some of the possible reasons:
You don’t ask for them
There are times when you are so occupied with your existing clients or working on other vital parts of your business that you simply forget to ask. But, on of top, if not the main reason, why people don’t ask is that they are simply scared 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 significant portion of those people said they much more probable to buy if they’ve been referred by a friend.
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 so is unwilling to give it a shot again.
Solution – If an existing customer is not willing 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 people again.
Good isn’t Great
To convert a happy customer into an advocate for your business, you have to work hard to not only meet their expectations but to exceed them. Providing good customer service is what they expect at the minimum. You’ve got to go the extra mile!
Solution – To encourage your customers to refer others, you have to go further than what they expect. 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 it into a plan that involves word-of-mouth marketing.
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 about you. Contact will keep you and your brand front of mind, thus making it easy for them to get back to you whenever they need your services or want to 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 your everything that’s 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 someone and there are organizations that provide the customers with lucrative discounts on their future services, a reward or something equivalent for the 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.