What is a Referral?
A referral is a type of sales term that specifies someone who provides the potential customer with information about your company or product.
The person giving this referral is not involved in the sale, but they encourage their friends to buy from you by providing them with useful information and justifying why it's worth buying.
If I refer an individual (John) to my friend for his real estate business, John will be considered a "referral" because he was introduced via me - even though I am not part of the process once John agrees on terms and negotiations start.
Tips to Get Referrals for your Business
- Get to know your customer's needs - Do they need a product or service that you offer? Do they need something else altogether? You'll want to make sure you're meeting their specific needs in order for them to refer others to you.
- Offer discounts on products when referral is made - Give bonuses for referrals with certain numbers of sales - this will motivate customers into getting the word out about your company!
- It's also important not to forget these often overlooked steps: ask politely, thank people who recommend your business, follow up by checking-in periodically on how things are going after the sale has been completed, send a personalized video to them thanking them again -- it's an excellent way of strengthening relationships and encouraging future recommendations.
- Consider asking for referrals politely and thank people who recommend your business
- Follow up by checking in periodically on how things are going after the sale has been completed