Every business leader knows that a referral is like gold dust – when someone recommends your business, it signals they trust and value your service or product.
Prioritising customer retention also protects future referrals and the potential growth that comes with them. But what makes a referral so valuable?
01
They’re driven by trust
Referred customers come with a higher level of trust – a pre-existing positive perception based on the approval of someone they trust. Trust plays a vital role in purchasing decisions and often speeds up the sales process.
02
They’re more likely to convert
Referrals tend to convert at a higher rate than customers acquired through other lead generation methods. Trust comes into play again here, as these customers are already tuned into the value and quality of your service or product, meaning they need less convincing to convert from a prospect to a customer.
03
They’re loyal
As well as being more likely to convert, referred customers tend to be higher quality once they do. They’re loyal, maintain engagement with a brand and often make repeat purchases. There’s also the potential for them to become future referrers themselves, continuing the positive growth cycle via referral.
04
They’re budget-friendly
Acquiring new business via a referral is generally more cost-effective than other marketing channels. They rely on organic, word-of-mouth recommendations rather than expensive campaigns, dramatically reducing acquisition costs.
Moneypenny provides outstanding customer service, efficiently handling calls and chats to boost customer satisfaction and let businesses focus on their core tasks.
