"How to Use Referrals to Grow Your Business How do you bring in new customers? Are you spending hundreds or even thousands of dollars on mailers, email marketing, social media marketing or other types of advertising? While each of these advertising methods has its place in the business world, you could be missing out on a vital marketing method: referral business. When you offer stellar products or services and excellent customer service, you keep your customers happy. Happy people are more likely to tell others about your business or to provide you with names of people who may be interested in your services. How Referrals Can Help Small businesses should use referral programs for several reasons. Perhaps most importantly, referrals can increase the number of sales you have coming in. Referrals can have up to a 60 percent close ratio, but cold leads usually top out at about 10 percent. Referrals also show you how many satisfied customers you have and help you to gain more; after all, most people won't refer someone to a company unless they have had pleasant experiences with it. Finally, referral marketing reduces your sales expenses. When you spend less time and money on cold leads, you can spend money and time focusing on the customers you have so they continue to refer other people to your business. Getting Your Referrals The first step to starting a referral program is to create a clear goal. Your goal should indicate what percentage you'd like to see your sales increase by as well as when you want to see the increase. For example, you may want to see a 25 percent increase in sales in the next six months. Next, you'll need to determine who you want to get your referrals from. Remember, not all your customers will have the kind of network that benefits from your particular business. Instead of asking everybody you've ever provided products or services to for referrals, focus on the customers who have loved your company the most. You can start small by looking at your last 100 clients and contacting the 20 or 30 who seemed to love your service the most. However, keep timing in mind. Contacting someone as soon as you close the sale is too aggressive and off-putting. Instead, give your customers time to enjoy your product or service and decide how much they love it before you ask for referrals. When creating a referral program, remember to implement rewards. When your customers feel like they are getting something in return for their time and effort, they are more likely to refer people. It is about more than sales, too. Consider giving your customers a small discount for every 10 or 20 names they provide to you. If any of those names turn into sales, you can offer a larger discount to both the referrer and the new customer. Food delivery apps such as DoorDash are an excellent example of this. Current users receive referral links that they can share with friends. Every time a friend orders food via the referral link, both people get a few bucks off their next order. Customers win by saving money and the business wins by bringing in more customers. Above all else, remember to say thank you. Your customers are taking time out of their day to help you bring in new clients, so the least you could do is thank them. Even a basic thank-you letter that you mail or email to your customers each time you receive a referral will be appreciated. Are you interested in learning more about gaining business by referral? Check out Superior Access and learn how we’ve become one of the top online marketing networks for independent insurance agents."