New customer acquisition remains a big problem of the sales puzzle that all salespeople are hard at work prospecting for. You have an opportunity to do this by asking for customer referrals. Multiple studies have shown that customers acquired through referral require less investment and have a higher potential for retention and loyalty.
Here are the big questions how do you go about breaking the ice with your customers to ask them for help? Is there a way to network to them to help you without being awkward? In this blog post you'll learn how to identify potential referral opportunities by asking for customer feedback and how to ask for those referrals once you've identified good candidates.
How to Use Customer Feedback as a Way for You to Identify Referral Opportunities
Knowing which clients are happiest with you will increase your likelihood of winning a referral. Here are some tips for going about it:
1. Identify your advocates.
One of the best ways to identify potential customer advocates that's commonly practised by the marketplace is to use the Net Promoter Score survey to help make the process a little easier.
2. Follow up with your promoters.
Sending a survey isn't enough. You need to follow up with potential advocates and keep the positive momentum rolling along. Best way to engage with your promoters are to get in touch with them personally and to understand what they are currently going through.
3. Use feedback and testimonials for referrals
Customers are more likely to trust your brand early on if they have social proof of your expertise and your testimonials. Case studies are one of your most powerful assets. A great way to gain feedback is by just asking.
4. Build Value first, then ask
There is nothing wrong with asking for customer referrals immediately after closing the deal, however we wouldn't recommend it. Rather we recommend to wait until after you've successfully completed your service and delivered unparalleled value to your customers.
5. Don't treat referrals like cold calls
Referrals are not cold leads. We recommend entering into a conversation with a referral with a much friendlier tone. Play up the relationship with you have with the referrer and act like you're already in your inner circle.
6. Offer incentives for referrals.
Performing great customer service, but sometimes it's still not enough to convince them to do referrals. It's time to incentivize your customers.
Conclusion
Often small businesses overlook the option of focusing their sales efforts into referrals. This is a viable option and can be a source of sales that draws the highest retention rates and at lower costs.
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