Small Businesses

7 ways to attract high-value, no-cost referrals for your business

  • 3 min Read
  • December 27, 2021

Author

Escalon

Table of Contents

Referrals are a sure-fire way to grow your business, but first you need a strategy to target the right audience. Here’s how to develop a referral program that benefits your business and your customers.




1. Develop marketing campaigns



Leverage email, text messaging and social media marketing campaigns to build awareness about your referral program. Use these platforms to attract and engage your audience, then funnel them through your process to become leads.


Promote your referral program by:


  • Displaying it on invoices, receipts, website or in-store checkout place.
  • Highlighting its benefits on social media, and creating a referral landing page with an attractive visual layout and call-to-action.
  • Placing a link to the program in your company’s email signatures.

2. Use a customer-first approach




Take advantage of word-of-mouth referrals. According to Nielsen, 83% of people trust word-of-mouth recommendations from friends and family, while 92% of consumers trust word-of-mouth referrals more than all other forms of advertising.


3. Elicit, don’t solicit



Avoid asking for referrals directly. Instead, deliver acts of generosity that bring value to your clients’ lives. These simple gestures will help clients remember you when someone asks for a recommendation.



In the book “Generating Business Referrals Without Asking,” author Stacey Brown Randall describes two methods for eliciting referrals:



  • Focus on relationships – People refer those who have an impact on them.
  • Deliver quality work – High-quality work keeps you at the forefront of clients’ minds..

4. Give incentives and rewards



Seek to reward each referral source, as well as give that referral an incentive to engage. These incentives can boost your referral and conversion rate:



  • Double-sided incentives, which motivate the advocate and the new customer.
  • Cumulative incentives, which stack credits for referrals to use all at once.
  • Discounted products or services when a customer brings successful referrals. 
  • Gift cards or prizes to entice customers to refer your business.

5. Create multiple avenues for advocacy



There are several ways to spur customers to provide you with referrals, and they largely center around providing stellar customer service. 



Inspire customers by:



  • Meeting and exceeding expectations.
  • Adding a customer loyalty program.
  • Engaging with them (customers) in an ongoing manner.
  • Making the experience shareable.
  • Sharing positive feedback from clients.
  • Distributing your content and resources across different channels.

6. Target potential referral sources



Zero in on good referral sources by:



  • Using your existing email subscriber list.
  • Recognizing people who recently made a second or third purchase. 
  • Tracking social media mentions and comments.
  • Finding active customers and asking them to share reviews.

7. Making social sharing easy for customers



Make it simple for people to access your referral program on social media. Provide a template that can be customized by each referral source and shared with a click.



Pointers for developing a strong referral network



Start by building good relationships with customers, employees, partners and vendors, and you will have a built-in web of potential referrals. Also, consider people who are influenced by your business idea, product or service, as they can be valuable referral sources. While friends and family are a natural place to turn, be sure they understand what you do first.



Be sure to thank your referral sources with a personal thank you on social media or via email. You can also send a thank-you message that includes a request to provide feedback or to participate in beta testing of upcoming products.



Track your referral program’s effectiveness



Analyzing your referral program data helps you understand how likely it is that customers will refer you. Things to analyze in your customer referral program include:



  • Referral sources.
  • Conversion rates per source.
  • Customer acquisition cost.
  • Benefits provided and availed by the referred person.

Talk to our team today to learn how Escalon can help take your company to the next level.

  • Expertise you can trust

    Our team is made up of seasoned professionals who bring years of industry experience to the table. You gain a trusted advisor who understands your business inside out.

  • Quality and consistency

    Say goodbye to the hassles of hiring, training and managing in-house finance teams. You will never have to worry about unexpected leave of absence or retraining new employees.

  • Scalability and Flexibility

    Whether you’re a small business or a global powerhouse, our solutions scale with your needs. We eliminate inefficiencies, reduce costs and help you focus on growing your business.

Contact Us Today!

Tap into the latest insights from experts in your industry

Accounting & Finance

Financial Planning for the Future, Setting Long-Term Business Goals

While small businesses must handle day-to-day tasks—like managing payroll or closing monthly books—long-term planning is the compass that keeps them...

Read More
People Management & HR

Benefits Administration, What Small Business Need to Know

Benefits administration can be a game-changer for small businesses aiming to attract and retain top talent. While salaries remain an...

Read More
Accounting & Finance

AAP vs. Cash Accounting: Which Method Is Best for Your Growing Business? 

Choosing the right accounting method can significantly impact how you track financial performance, manage taxes, and plan growth. Two common...

Read More
Accounting & Finance

Beyond Bootstrapping: Advanced Cash Flow Management for Scaling Companies 

Bootstrapping—financing growth through internal cash flow—is a hallmark of many successful startups. But as businesses mature past their initial stage,...

Read More
Technology & Security

Building a Scalable Tech Stack: How to Choose the Right Tools for Growth 

In today’s business landscape, technology is more than a convenience—it’s a strategic asset that can supercharge growth. But as you...

Read More
Accounting & Finance

How to Reduce Month-End Close Time Without Sacrificing Accuracy 

The month-end close can feel like a perpetual scramble—collecting invoices, reconciling accounts, fixing last-minute errors. A drawn-out close not only...

Read More
uncategorized

How to Reduce Overhead Costs Without Impacting Productivity 

Overhead costs—from utilities and rent to administrative staffing—can quietly swell until they erode profit margins and slow your ability to...

Read More
Accounting & Finance

How to Structure Your Finance Team as Your Business Scales

Growth triggers a tidal wave of financial complexity, multi-entity operations, new product lines, overseas expansion, or investor relations. If your...

Read More
Accounting & Finance

M&A Readiness: How to Prepare Your Financials for a Successful Acquisition or Sale 

Mergers and acquisitions (M&A) can dramatically alter a company’s trajectory—unlocking new markets, technologies, or customer bases. Yet, many deals stumble...

Read More