5 proven ways to grow customer referrals for your local business
Referral marketing has long been a driving force behind business growth. With the constant rise in competition for small businesses, nowadays customer referrals have become an even more essential aspect of business growth. In today’s digital world, more and more businesses are turning to the internet to help spread the word about their services and products, and online reviews play an important role in this process.
According to research, 94% of consumers say they’d trust a recommendation from someone they know over any other form of advertising. In addition, 83% of satisfied customers are willing to refer services and products to their friends and family. These statistics demonstrate the power of online reviews and digital referrals in helping local businesses grow.
Customer referrals: high conversion at low cost
Referrals provide a direct line of trust between clients and businesses that sets them apart from their competitors. Additionally, customer referrals cost no money, and they are more likely to convert to sales than any other lead generation channels. When customers recommend a business to their friends or colleagues, it increases brand exposure and helps businesses gain more customers. And, when these new customers are happy with the quality of the services or products they receive, they’re likely to continue recommending the business. This creates a cycle of referral marketing that can help local businesses grow and grow.
In this blog post, we will discuss how local businesses can get more customer referrals from their clients, how to implement referral strategies, and how customer referrals can significantly contribute to the growth of a local business.
Here are 5 ways you can get referrals for your local business.
Provide high-quality services at all times
Provide a link and ask customers for referrals
Implement a referral program
Increase referrals online
Follow up with clients regularly
Let’s explore each of these methods in a bit more detail…
Provide high-quality services at all times
This one may seem obvious, but providing high-quality services is the backbone of getting great referrals from clients. Local businesses that provide excellent services across the board are likely to get a referral from satisfied customers.
Going above and beyond to ensure the clients get the best services possible will leave them content and more prone to recommend the business to their family and friends. Consistency is key in driving these satisfied clients to be loyal to the business, which increases the chances of customer referrals and online reviews. When clients encounter exceptional customer service, they are more likely to refer the business to others. A study by the Wharton School of Business found that referred customers had a 37% higher retention rate, making them five times more likely to refer to the business.
2. Provide a link and ask customers for referrals
Make it effortless for your customers to become brand advocates and refer others by implementing a straightforward referral system. Simply ask satisfied customers to share their positive experiences and provide them with a direct link to leave reviews on popular platforms. By streamlining the process, you empower your customers to effortlessly spread the word about your business, expanding your reach and attracting new customers.
3. Implement a referral program
Implementing a referral program is an effective way to generate client referrals. This strategy involves giving incentives such as discounts, coupons, or cash incentives to customers that refer a friend to the business. This technique not only incentivises client loyalty but also attracts new clients through the referral process. Studies by the American Marketing Association revealed that referred customers have a 16% higher lifetime value than those acquired through other channels, so it’s worth getting it right!
4. Increase online reviews
There are several ways for businesses to increase their referrals online and make sure that these recommendations reach the right people. One of the most powerful tools for local businesses is Google Reviews. When customers leave online reviews about a business on Google, these will show up in search engine results and give potential customers more insight into the quality of services and products that they can expect from the business.
Facebook is also an important tool for referral marketing, as it allows customers to easily share their experiences with friends and family. When people post about a business on Facebook, this gives the business more exposure and can help to attract new customers.
5. Follow up with clients regularly
Following up with clients regularly is a great way to touch base and let them know the business cares. Whether it's through email marketing, phone calls, or text messages, clients appreciate the outreach, and it keeps clients engaged with the brand long after the job is complete. Regularly following up with clients increases the chances they'll refer the business to others. It makes them feel valued, and when asked about services, they'll likely refer to the business with fondness.
Drive growth for your local business
Generating customer referrals and online reviews is an inexpensive and effective way to drive growth for local businesses. Providing high-quality services, implementing a referral program, increasing online reviews, providing exceptional customer service, and following up with clients are effective ways to increase referrals. Overall, referral marketing is a powerful tool for local business growth.
Through the use of platforms such as Google Reviews and Facebook, businesses can tap into an extensive network of potential customers who may be interested in their services or products.
By taking advantage of digital referrals, businesses can help increase their brand exposure and reach more customers. In short, local businesses that use referrals as part of their off and online marketing strategy will undoubtedly experience significant growth and build a loyal customer base.
Who are you and what is this?
This post is one of many aimed at helping to support owners, managers and franchisees with growing their local business. It's been lovingly researched and written by the expert team behind LocalMark, a London UK-based local SEO service that helps connect UK trade, service & retail businesses with nearby customers. If you found this helpful and could benefit from more of the same, be sure to share, follow us on social (links below) and sign up for our newsletter.
About the author
From a long line of small business owners, local marketing expert James understands more than most the unique challenges they face every day.
He’s been advising local business owners and their agencies on digital marketing since 2000, and established our local SEO service in 2021.