I’m sure you realize the value and importance of referrals. As Jim Rohn has said, “One customer, well taken care of, could be more valuable than $10,000 worth of advertising.” The value of a pleased client referring others to your business can be insurmountable. However, in order to draw from the source of your clients to get referrals, you need to have a structure in place; you can’t just believe that referrals are important and then do nothing about it. Using a system--whether that’s asking for referrals in person, sending out an email sequence, or following up on a phone call--will allow you to capitalize on referrals. The system has to be structured, though, so that no client slips through the cracks. Hopefully these stats below about referrals will encourage you to create a system (or use Bee Referred to automate referral marketing for you!).
83% of consumers are willing to refer after a positive experience—yet only 29% actually do.
People are 4 times more likely to buy when referred by a friend.
92% of respondents trusted referrals from people they knew.
Every referring customer makes an average of 2.68 invites.
Companies with formalized referral programs experience 86% more revenue growth over a two year period when compared to the rest.
87% of frontlines sales reps, 82% of sales leaders, and 78% of marketers surveyed agree that referrals are the best leads your business can get.
Only 30% of companies surveyed have a formalized referral program.
1 offline word of mouth impression drives sales at least 5x more than 1 paid impression.
Word-of-mouth has been shown to improve marketing effectiveness by up to 54%.