The benefits of referrals aren’t just anecdotal. Almost half of all shoppers discover brands from family and friends, and referral leads boast a 30% higher conversion rate, suggesting that customers rely on recommendations as a part of their decision-making process. Building a robust referral program can encourage more customers to choose your service while increasing your overall margins.
Here are 3 more ways that referrals can boost your business:
Low-cost marketing:
- Word of mouth is the earliest form of marketing, and one that is still effective today. A referral program offers a low-cost method to build your reputation and expand your customer base. Creating testimonials out of past referrals and reviews can boost your online reputation.
- The reach of referrals can get pretty large, with one referral leading to the next. And with a creative social media campaign, this reach is extended further. Contests or incentives for those who post about their solar installations and tag your business can encourage past and present customers to participate. By taking the referrals you get and circulating them on social media, in email communications and on company websites, you can get the most out of the positive reviews you receive.
Easy, effective relationship building:
- It’s believed that referred customers come to you more open and trusting of your services because someone they trust referred them. The same goes for your past customers who benefitted from your services enough to sing your praises. Positive interactions with old and new customers helps you strengthen your relationships with both, possibly leading to repeat business.
- A referral program can also create greater loyalty with customers, especially if you show gratitude for their recommendations. Showing your appreciation for customers either verbally or through incentives is a great way to build long-lasting relationships.
Customer-centered mentality:
- You can’t prioritize referrals without a “customer first” mentality. No one will take time to give a positive referral for a business that did not meet their needs. Prioritizing referrals will help you take on a customer-centered approach in order to deliver the best service possible.
- John Bumgarner, Mosaic Chief Revenue Officer notes, “Referrals are only possible through satisfied customers. Keep up with project timelines and communicate with customers about project progress. One good tip is to have project coordinators call customers weekly to show that customer satisfaction is the priority.”
- Training and valuing customer service teams, and putting other measures in place to protect customers will inadvertently lead to better referrals. One new way to do this is to sign up for a Recheck ID when it becomes available, and encourage team members and peers to do the same. It’s a great way to build credibility and show your dedication to higher standards.
Financing applied for and processed through the Mosaic platform is originated by Solar Mosaic LLC or one of its lending/financing partners. Equal Housing Lender