A study by the Wharton School of Business found that the lifetime value of a new referral customer is 16% higher than new customers who weren’t referred. Put simply, a customer who was referred to your business is more likely to use your services and keep using them as time goes on!
The question is, how can your front desk effectively encourage referrals, ultimately driving more calls to your business and boosting your revenue?
Make Your Customer Experience Positive
First things first—you must give your clients a reason to want to refer others to your business. If your client has had a bad experience with your business, they’re not likely to refer anyone!
A great client experience starts with the initial phone call; make sure your staff is friendly, upbeat, and helpful at all times. If they must place the caller on hold, always ask permission first, and get back to the caller within one minute.
Never allow your staff to quote a price over the phone; have them encourage the caller to schedule an appointment with your business instead. As the call wraps up, make sure staff members confirm the appointment with the caller and mention that your establishment can’t wait to meet them during their visit.
Timing Is Everything
If your staff starts discussing referrals with a customer at the wrong time, they’ll either be ignored or told “no” flat-out. It’s essential that a referral is encouraged at the precise moment when the customer is feeling most satisfied by your service. Have your staff encourage referrals right after a positive customer service experience, immediately after your client’s problem has been solved, or shortly after a client has agreed to make a purchase from you. It’s moments like these when a customer is feeling most confident about your business and sees the most sense in telling their friends or relatives about it!
Of course, a great referral program is a way to encourage your clients to tell others about your business. Offer a discount on your client’s next visit when they give a referral; offer a discount for the referred client if they mention the person who referred them. Programs like these give your customers a tangible reason to spread the word!
It’s important that your front-desk staff frame their language a certain way when it comes to encouraging referrals. The discussion should always be oriented around how your business can benefit the client’s relatives, friends, or acquaintances. Instead of:
Would you be interested in referring others?”
“If you know others who could use our help, feel free to refer them – we even have a benefit program for this sort of thing!”
Referrals are a key part of your revenue model. They don’t just boost your new client numbers—they help cultivate long-lasting customers who will benefit your business for years to come. Implement these strategies today to start reaping the rewards!