An entrepreneurial adventures

How to build a Customer Referral System

Customer referral is the process through which a client recommends a product or a service to leads, thus proving its good quality. When a business gets recommended, that not only confirms their professionalism and their sincerity, it also encourages and reassures the leads as to their future collaboration with them. In other words, your clients become your best marketers.

You might ask yourself why customer referral system is so important, and the answer is quite simple: a lot of businesses spend endless hours of hard work trying to generate new leads, as it is undoubtedly the hardest part of doing sales. With an effective customer referral system, you will only have to worry about that aspect partly. Your clients can do all of the hard work for you without even knowing it.

Of course, you will have to keep in mind that referrals have to be earned. Clients will not recommend just anything, they’re more often than not very selective with what they buy themselves. For you to give your business its best shot at getting referrals, the first step will have to be to ensure that you are providing your clients with an extraordinary experience.

With that being said, let’s take a look at how you can start building or improving your Customer Referral System in just a few simple steps:

Identify your referral sources:

As it is the case for lead generation, you need to know your customers and understand their actions whether they have been recommended your products/services or they were the ones recommending them. In both cases, the easiest way to gather such information is to simply ask.

For a new client, you can, for example, ask how they’ve heard about your business after they visit your website. For others, you could ask how likely they are to recommend using your products/services to a friend. Do not forget to always ask for your clients’ personal information.

This data will be highly valuable for you when building a Customer Referral System. It will allow you to get a better overall vision on what your next steps should be, and what customers you should keep a close eye on – as they will be your allies in your businesses’ growth!

Make yourself easy to recommend!

For your customers, finding a way to recommend you should not look like they are trying to solve a riddle. You need to make sure that it always is convenient for them to talk about your brand. Not only that, but you should also try to encourage them to do so.

A great way to do that is to include a recommendation button on your newsletter e-mails. If you’re sending your customers information about discounts or special events, chances are they will be interested in spreading the news with their close ones. Take advantage of that by including a “Recommend” button to your email, that will easily help the clients forward the email. You could also include a special offer for those of your clients that will decide to share it incentives are guaranteed to boost the motivation to talk about you!

Keep a close eye on your recommended customers:

The data about people who have been recommended your products is extremely precious. It’s a pool of business opportunities for you. You will have to make the best out of it and put it to good use. To put it simply, you have new customers that you should focus on. The goal now is to drive them to the same point as the ones before them. How so? Through the same means as always.

These customers already have a good impression about you as they came in contact with you through someone they know and trust. That only makes it easier for you to build loyalty and a long-term relationship. Stay in touch with them, make sure they are satisfied with your products/services, let them know about the referral system and how they can use it themselves. One of the best ways to do it is to dedicate a special marketing campaign for users that have been recommended your brand, which you can easily achieve through many of the available marketing automation tools.

Build a strong connection with your brand’s fans:

As much as it is great for you to gain new customers through recommendation, all of your focus shouldn’t go exclusively to the newcomers. To make sure that you keep your loyal customers engaged, you can build a Brand Ambassador program. You can consider them as your biggest fans, ones that will go around talking about how your brand changed their lives. Even though they do so without expecting anything in return, you could (and should) reward them for their engagement.

Make sure to save some special offers and discounts for your most loyal ambassadors or provide them with vouchers for their next purchases. Show them you are thankful to have them to keep them by your side.

Doing business can be hard. The hardest part is to get clients to trust you enough to buy from you, and when that is done, to keep them coming back. This, nevertheless, does happen if you properly take care and manage your sales funnel. You will see your leads converting into customers and your customers into loyal clients. These loyal clients are not to be taken for granted. Of course, it’s great for your brand if it’s successful and keeps engaging its’ customers and keeps them interested through all kinds of means.

That loyalty will, more often than not, end up getting you more opportunities. Loyal clients will love to spread the word about your brand and that will inevitably get you more and more sales. That is why it is important to keep a close eye not only on the people that recommend your brand, but also the ones that get recommended to use it.

This can all be done by setting up a strong Customer Referral Program. Using the data you collected about your clients, you can analyze who is recommending you to who. The main keys to keep in mind while trying to build such a program is that you should make it easy for your clients to recommend you. Constantly remind them that they can, and help them do so by including an easy way to transfer your newsletter emails for example.

Also, remember that they are doing this willingly. And so, you must show them gratitude. Offer them incentives, discounts, vouchers and everything you can to make them feel special because they are.

1. Afi.to

You can use Afi.to software to build your referral system. They offer a very powerful solution that connects referral with social media marketing

2. Affise

You can also try affise, that focus on performance of the referral systems. Manage, track, analyze and optimize online advertising campaigns in real-time

3. Indahash

You can also try indahash influencer marketing platform. Set up fully customized influencer marketing campaigns using our advanced targeting tools and market expertise.

An entrepreneurial adventures

Simon Piekarz

I'm a serial entrepreneur with a passion for technology. I'm a full life cycle founder. I want to share this adventure with you, so that I can help you to avoid problems on the way to success. Enjoy!

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If you have any questions or you need help in your daily business problems just drop me an email: simonpiekarz@gmail.com