April 18, 2018
Why Referrals? Creating your Tribe
Referrals are an incredible way to reach new customers, and all businesses, no matter what size, can benefit greatly from maximizing them. Even better, teaming up with the best mobile credit card processing solution can be your gateway to your ideal referral pipeline.
Why Referrals
First of all, and most importantly, referrals are one of the most effective and cheapest ways you can actively market for your business. The return on investment is higher for a number of reasons.
- Less cost: With a referral, you aren’t paying (or are paying minimally) for a person’s ear. A pure referral, that is motivated by one of your customer’s excitement for your product costs $0. Some businesses sweeten the pot by encouraging that customer to reach out to their friends, in the form of a discount, a free product, or similar incentive. This can end up being highly cost-effective when you consider that leads can be expensive. Anywhere from $25 to $60 or more, depending on your industry.
- Less friction & More Success: Getting your marketing message in front of a pair of receptive eyes is a big challenge, and there’s a lot of friction in the process cutting back one’s success. Referrals are so successful because there’s less friction. In traditional marketing, you’re fighting the friction of whatever that person is doing when they encounter your message, whether that’s reading an article online, watching a baseball game, or driving down the street. A referral is more natural, because, more than likely, your customer is honestly excited about your product or service. Second, they have a personal relationship with the person they are referring, making the audience to your product’s message much more receptive. A Nielsen survey noted that 92% of people trust referrals from people they know.) Everyone likes referrals because they feel more “real” or “authentic” than most advertising—and it is. With a typical batch of 100 leads, you’ll be pretty much on track if you’re getting 10 to 15 of those in the sales pipeline. Depending on your referral system and industry, you can count on an exponentially higher rate of success.
A strong referral system can do much to build a business, and it’s all about creating ownership. As we said, referrals are more authentic, when compared to PPC (pay per click) advertising, for example. When a lot of your customers are giving referrals, they are taking ownership of the product, of their own free will. Naturally, this reflects back on everyone at the company, making it easier for everyone to take ownership of the place they work.
How do you bolster your referral infrastructure? Start with a strong customer relationship management platform. Being able to leverage your connections with your existing customers is crucial. From here, if you have the best mobile credit card processing solution, you’ll be able to add solutions that help you reward the customers that are referring you. We at Moolah love the Poynt Smart Terminal because it integrates with many rewards programs, and allows businesses to seek out a solution that fits them. With Poynt and Moolah, you can find the right tech to help you build your tribe.
