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Power of Referrals in Building a Business

Have you ever wondered what customers think about your product or the services you provide? How likely are they willing to recommend your business to their friends and family? In the business world, referrals are key. They have been an effective way to market businesses for years and can be a critical influence in revenue. Below is data regarding how powerful referrals can really be in marketing and maintaining a successful business.

 

Impact of Referrals, using data:

There are an abundant number of interesting articles that explain the relationship between referrals, business and customer satisfaction.

In the article, “Referral Marketing is the Real Deal”, Stacey Rudolph reveals that “Referral marketing’s online presence is on sharp rise. From statistics, As a matter of fact, customers referred by other customers are 4 times more likely to refer more customers and 37% more likely to remain loyal customers. when you involve a referral in your sales, you are likely to experience 41% higher conversion rates. As you can see, referral marketing is very powerful and critical marketing tool that you can utilize to improve your sales and ultimately, conversions.

 

In another interesting research by the Harvard Business Review, the lifetime value of a referred customers is 16% higher than the non-referred customer. Also, referred customers are cost less to acquire than non-refereed customers.”

 

Understanding the needs of your customers and their satisfaction level is an essential way to ensure your business is receiving those raving “word of mouth referrals” that will keep current customers and establish new customers. Customer satisfaction is an essential aspect of any business model. To illustrate the true importance of referrals are some statistics from Lisa Ross’ article, The Importance of Referral Marketing – Statistics and Trends:

• 84% of people trust recommendations from people they know making referral marketing the most influential form of advertising.
• 77% of consumers are more likely to buy a new product when learning about it from friends or family whereas 49% of U.S. consumers say friends and family are their top sources of brand awareness.
• Referral marketing generates conversion rates 3-5x higher than any other marketing channel.

 

According to a 2016 article written by Lucy Davies, “83 percent of U.S. consumers prefer dealing with human beings over digital channels to solve customer services issues, and 52 percent of consumers have switched provider in the past year due to poor customer service… In the U.S., the estimated cost of customers switching due to poor service is $1.6 trillion” Further indicating that unsatisfied customers will deter referrals and can be bad for business.

 

Survey Solutions:
What can aide you in gaining those critical business boosting referrals and improve overall customer satisfaction?

Our team at RavenCSI can provide a full-service customer data collection system. Our survey tool can capture customer satisfaction level real time. This will alert a manager to respond within 10-15 seconds in order to ensure the highest level of service and customer satisfaction.

We realize you are busy and do not need another software to manage, so we do the work for you. We will help with all aspects of building a method of capturing your customers experiences and their feedback, including assisting with understanding the trends and data to improve your systems and processes. Our team’s foundation is built on solving difficult business problems for the last time.

 

Contact us now for a short demo to help you maintain excellent rapport with your customers, get you on your way to more referrals and ultimately increase your revenue stream!

By | 2019-07-25T05:35:15+00:00 July 24th, 2019|General|Comments Off on Power of Referrals in Building a Business

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