Business is generated with leads and while there are many ways of getting leads, a referral is the most valuable. When satisfied customers refer you to their associates, you already gain higher visibility and trustworthiness. You are able to convert these introductions into appointments much more easily than had you used typical cold calls or emails.
Let’s take a look at some of them.
1. High returns at low cost:
The business that can come from referrals need not be linear. You can get referred for multiple great business opportunities from one client as well. You can experience exponential growth without investing in expensive marketing.
2. Fewer negotiations and more trust:
You get to meet potential clients who are already open to listening to your proposal and trust you to do a good job. They will not ask you to prove your work first or look for breaks in pricing.
3. Quicker closing:
You would be able to close the sales process of a referral client much faster than a regular sales account. They already are convinced of your ability to get the work done, which takes up more than half of the sales effort.
4. Higher billing:
With referrals your chances of getting business from the same clients for a bigger project are also much higher. In fact, your existing customers can point you towards bigger, better billings directly with their recommendations.
5. More referrals:
Once you meet a new prospect from a referral and offer them great service, they can refer you to more people, and the cycle continues. The power of referrals in generating business is unrivaled and has many advantages.
You can also gain the reputation of an expert among your clients as they are more inclined to follow your suggestions. This can give you an opportunity to cross-sell and also offer them better service.
In short, referrals are a great way of generating business and developing a good client base.
