Referrals are great for every business because not only do they increase your customer base, but they can increase the level of satisfied customers and reduce your sales expenses. Satisfied customers can be your best sales people and referrals are the perfect way to utilise that. Below are 4 main types of referrals that every business should be considering when building their referral programs.

Direct Referrals
A direct referral is simply when one of your existing clients refers someone they know. You could have a promotion running, where the current client gets a free product or service from your company if their referral turns into business. For example, a landscaping company could send a gardening pack or voucher for outdoor furniture to current clients who referred a friend or family member who took up their landscaping service.

Implied Referrals
With an implied referral you want to make it very obvious that you are doing work for someone without directly asking for a referral. For example if a builder is completing works on a house, they could send letters to the other houses in the street advising them to contact the company if there are any problems. This means that the other residents in the street will see the company as being considerate and helpful. They will also get to see the work getting done on the house and the finished product with the building company in mind and may think of them if they need any construction work done.

Tangible Referrals
With a tangible referral you put something in the hands of your customer that has real value and that they can give to a referral source. You could give your best clients vouchers to your store and ask them to share it with a friend. Another good approach is to encourage customers to bring a friend for free or give away a product to the friend if they are referred. This could also be combined with direct referrals.

Community Referrals
There are plenty of community organizations that need and deserve your support. You could run a promotion that will benefit the both of you. An example of this is a café that gives 10% of all profit made in October to a charity. The company is then seen as helping the community and the charity benefits from this promotion. The charity is also likely to promote the business and mention it to their own customers, because the more money the café makes, the more money they will get as a donation.

Based on a thorough understanding of your business and an examination of the market your product resides in, Clarity Marketing can develop a targeted marketing and communications strategy and extensive plan to develop your business. Clarity Marketing & Communications will work with you to develop your goals with maximum impact. See more here.