Are you ready to grow your business by starting a referral program or boosting your current one with a referral software that will be a game changer?
We want to help you understand with numbers the impact that referral marketing can bring to your business. Based on our customers’ results, we created a small company example to show you potential referrals results in a period of 1 year. Read more about customer's reviews.
To summarize the example of the video...
- The company has 2 sales reps. Each rep visits an average of 40 customers a month
- From the 80 customers they visit, 25% will become an Advocate for Referrals
- 80 customers x 0.25 Advocate rate = 20 new advocates a month (240 new advocates in one year)
- Each Advocate submits an average of 2.5 referrals a year
- 240 new advocates x 2.5 referrals = 600 referrals in one year
- On average, companies qualify 65% of the referrals they receive
- 600 referrals x 0.65 qualification rate = 390 qualified referrals in one year
- Referrals typically have a 50% close rate
- 390 qualified referrals x 0.50 close rate = 180 closed referrals in one year
That's 15 new deals a month all from your customers!
And this number can be higher if we consider the following factors:
#1 Everybody can be an Advocate!
Having that said, your referrals can be higher if you add your past customers to the list and send emails reminding them that they can submit referrals and be rewarded! Don’t’ forget to ask referrals for your prospects that weren’t a perfect fit for your product but know somebody who is. Finally, include your employees’ friends and family and your own personal network as Advocates too!
#2 You can offer different levels of incentives based on the quality of the lead.
For example, you can provide an incentive for any lead that results in a sales appointment (regardless of whether the referral makes a purchase). Then, you can offer a better incentive if one of those leads results in a sale. This is a great option for businesses that have a long sales cycle. Incentives are proven to increase people’s intention to refer.
#3 Make it as easy as possible!
Researchers with the Harvard Business Review found that brands that make the sales process easy on their customers are 115% more likely to be recommended by those customers. If your process for providing referrals is too long or too involved, it will discourage people from providing referrals. Minimize anything in your customer referral process that may frustrate your customers and ultimately discourage them from providing referrals. When you provide customers with a easy-to-download referral app, you make sure they have the process in the palm of their hands.
Read more about "The Best Practices of a Referral Program."
Don’t lose more time with worthless leads and invest in building a referral program for your company. If you want to learn more about how GTR referral software can increase your sales, schedule a demo today and we will show you how!
* Data Based off of Current GetTheReferral.com Partner Company Statistics