Nurturing your customer relationships will lead to loyalty and referrals
Have you ever been told about a friend’s amazing experience with a particular brand and decided to find out for yourself what made that encounter so special? Your experience may have been great, but what happened afterwards? Did you return, did the company reach out to you or your friend and maintain that once solid relationship? We have discussed the importance of nurturing your customer base, but if these fostered relationships are maintained, what happens then? More referrals and a larger customer base.
“65% of new business opportunities come from referrals and recommendations.” (Signpost, 2021)
Good relationships lead to new relationships. Nurturing your customers encourages referrals and provides advocates for your business. Recurring business does not just happen, and customers don’t just remember to refer a friend. They need nudging that you would welcome any new introduction. Nurturing these consumers is the reminder a business needs for referrals to happen. Customer referrals breed more referrals, so the trick is not to neglect those customers that purchased in the past.
“The biggest reason a customer switches to a competitor is not the price, or a better product. The biggest reason is neglect.” (Inny, 2014) The benefits of nurturing your leads
On average, half of leads within any given system are not yet ready to purchase. That is why it is crucial to cultivate and prolong your sales and aftersales process, to keep these leads warm and ready to convert into red hot leads when the time is right.
Get to know your customers
Building a relationship with your referral customers allows businesses to develop a better understanding of what is a “sharable experience” to them. This way, you can not only deliver for them but go the extra mile to exceed expectations, making these customers think “I want my friends and family to hear about my experience.”
Nurturing customer relationships works in a business’s favour, as they can focus on attracting leads that fit their brand, not just anyone. Existing customers should be treated as a source of knowledge that can provide your business with a wealth of appropriate leads that would benefit from your products. There is nothing worse than a customer who is not quite getting what they signed up for.
Reaffirm why your customers do business with you
A business that stays in touch with its customers after a sale, will add value to the buying process. Customers will feel involved in important updates and exciting new products. What’s more, they are less likely to look elsewhere to purchase if their experience with you is exceeding expectations.
Appeal to your customers ego
There is no greater form of flattery than valuing someone’s opinion so highly that you ask for it. Buyers don’t want to simply be sold to; they want to be heard. Asking for referrals and circulating testimonials shows you want to engage with customers.
A customer who feels valued with want to work with you to promote your brand.
How do you address a customer that has referred someone? Reach out to them to tell them you appreciate their loyalty and offer them a discount or service. Best practice would be to thank your referral source three times, when you get the introduction, during the sale and once the new customer is happy.
A customer that refers someone and doesn’t hear back from you, isn’t likely to want to promote your brand again.
Referrals mean confidence in what you do
If you know that the service you are providing is good enough to rave about, customers will share your faith. Confidence is contagious. Packaging your business for success with will boost positive word of mouth marketing.
Improve your social media presence
If you’re browsing the web looking to purchase, and you spot a raving review and customer referral success story online, it is likely to spark your interest. Encouraging customers to share their experience and your brand with others online will highlight your success on social channels.
There is a reason brands go to such lengths to get referrals.
Bibliography
Inny, D. (2014, October 6). How to turn your best customers into referral machines. Retrieved from Smallbizclub: how-to-turn-your-best-customers-into-referral-machines/
Signpost. (2021, May 12). The Value of Referral Marketing: Need-to-Know Statistics and Trends. Retrieved from Signpost : #:~:text=92%25%20of%20consumers%20trust%20referrals,main%20source%20of%20new%20business
