Business referrals are known as being:
An often used and effective marketing strategy that provides incentives (including financial) for colleagues, suppliers, business partners and others to become new customers.
What Are Business Referrals?
Business referrals are when a business encourages existing customers to speak with their personal networks, and to direct friends, partners and other associates to become customers of the said company.
Importance of Referrals for Businesses That Ship Goods
Businesses looking to find a supplier for their shipping needs are generally driven by prerequisites such as convenience, speed, and price. Also, for businesses that ship goods regularly, the need to find a reliable supplier is of the utmost importance, as orders that fail to arrive on time or go missing can result in lost customers.
Using a courier that has been recommended by an acquaintance or business partner can go a long way towards easing the fears and worries associated with using a courier firm for the very first time. Especially if the company depends on urgent delivery services, like express delivery or next-day delivery.
Referral Marketing - How to get referrals from businesses
Sources to tap into to capture referrals include:
Existing customers
Current customers can be a source of referrals, as they will have already purchased goods or services from your business, will know what to expect and can provide a positive commentary to their networks, when recommending a business.
Business Suppliers
Businesses are often a part of social networks that vary in nature depending on their size. Large businesses may have contacts internationally and in varying business sectors and spheres. Smaller and medium sized companies may also possess relationships with businesses of a similar size and scope. This diversity provides ample opportunity for referrals and if used effectively, can bring about quick business growth.
Close family
Close members present an opportunity for securing referrals, especially if they possess extensive networks and connections. Although they may be some trepidation on the part of businesses to approach family members for referrals — gaining referrals from close family members can be a warranted strategy for start-ups looking to turbocharge revenue and growth, during a business’s first months of existence.
Extended family
Extended family members, like close family members present the chance for businesses to gain referrals from sources that otherwise wouldn’t be possible to obtain. As with referrals from close family members, extended family referrals provide a level of trust to individuals and or businesses and can provide a sort of comfort, if said businesses/individuals have worries about the services or products, as they would possess a direct line of sorts for fixing issues, if they arise.
Influencers
Influencer marketing is a commonly used tactic used in online marketing in order to generate more business. Influencers with large followings can provide spikes in orders, however using the services of online influencers can be expensive and sit outside of the price range of most new and small to medium sized businesses.
Friends
Other than close family members, referrals from friends constitute a rich potential of new business for companies. Friends working for large and small companies, self-employed friends, friends working abroad, and friends with their own large pool of friends offer a range of referral options for businesses.
Co-workers or ex-colleagues
If an individual is working in a full-time job whilst running a business as a side project, referrals from co-workers may be a good way to gaining referrals. On the other hand, if someone running a business full-time needs referrals, asking former colleagues may be a good way of drumming up more business.
Ways To Get Referrals
Several methods exist for acquiring referrals, including:
From Customer Services
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Go above and beyond for customers
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Customer loyalty programs
From Incentives
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Discounts on future orders/purchases
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Cash back
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Commission
From regular communications
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Newsletters
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Email news and offers
From Customers
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Asking directly
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Offering financial incentives
Summary
Using referrals to sign up new customers can be an important component for both courier franchises and businesses. Effective referral marketing should consist of the following:
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Positive Testimonials: The first requirement for attracting customers is to get existing customers to provide a good testimonial that can be used to entice referral prospects.
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Tailoring Approaches According to Different Referral Channels: Referrals come via different methods, and referrals should be adapted accordingly. A referral from close family may require a single in-person chat, whereas procuring a referral from an influencer with whom a personal relationship doesn’t exist may need several meetings and other efforts.
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