Customers who feel valued by businesses are more likely to buy again than to look elsewhere. Customer loyalty is one of the most powerful business-building tools any business can master.

Business owners and sales reps are always busy: they work hard to market, to sell, to produce, and to deliver. Staying in touch with existing customers often takes a back seat because they prioritize going after new customers. But connecting with existing customers is one of the surest ways to bring in business to any company, as long as it’s done right! Read More: "Building a Referral Software for a Small Company."

A newsletter, a direct mail or a sales flyer are ways of ‘staying in touch’ with customers but it’s not ‘connecting’ with them. There is a huge difference in meaning and results between both.

How Do You Connect with Customers?

“It was OK, but we didn’t really connect.” Whenever you hear this sentence, you know what is coming next: there will be no next time. A true connection is meaningful, has value, is enjoyable, creates something, and establishes a valuable relationship to both parties.

It does not matter whether it’s personal or business, connecting counts. As a business owner, you must find alternatives to connect with every one of your customers on a regular base.

One important strategy is to create a sense of belonging, a belief they are important, and that they enjoy this relationship. That’s where a great referral program comes to place.

When a customer understand they are important, that they belong, that they are doing something of benefit for someone they know, and they get a reward for it, you built a connection that ties the bonds tighter. Tight bonds are hard to break, and that builds loyalty.

When you can connect and bond with your customers, you generate a win-win-win situation: You win by getting a new customer, the new customer wins because they buy something they need, and your existing customer wins because they feel good, do good and get a reward.

How Can Your Referral Program Connect with Your Customers?

To be effective, your referral program needs to accomplish 5 things.

1. Get you more referrals (first and more important!)

2. Help your customers to perceive they ‘belong’ to a successful business that cares about them

3. Make it easy for them to refer (through a referral app and a company’s referral web page)

4. Reward them for referring customers

5. Give you proper reasons for ‘keeping in touch’: thank your customers for the referrals, communicate the status of their referrals, remind them of the rewards and new offers applied.

When you make the most of your referral program, you connect with your customers and make sure that there will be a future relationship. With a Referral App, your company takes advantage of a branded mobile application to engage with a network of consumers and communicate with them in an easy and direct way. Read More about "Why Is Branded App Marketing So Important?"

If you want to learn more about how a referral software can increase your sales, subscribe to our blog and schedule a quick demo today and we will show you! 

Steps for a Referral Program