Referral Marketing: 5 reasons why people refer

Referral marketing works because as humans we’re wired to belong to something greater than ourselves. By validating things that make us feel good and sharing pleasurable experiences, our drive to support others is strong.
That’s why so many businesses do well just by using this business-building strategy alone.

1: We prefer to connect with others

If we want a doctor, a dentist or a good hairdresser we usually ask someone who they go to. It’s the social glue that keeps communities together and businesses active once they tap into this.
If you’re asked for directions, shortcuts or tips you’re probably quick to help. Making referrals is another way of helping others and connecting. Social networking sites have become popular as more people want to share their ‘finds’.

2: Business referrals can be risky

This involves trust – and you must have loads of it to refer a business to a friend or colleague. One slip and it’s not only your reputation, but that of the person referring. That’s why quality and service of a business is a ‘given’ before someone will refer you.

3: Referrals come from businesses we rave about

Seth Godin (a well-respected marketer and author) once said, “If the marketplace isn’t talking about you, there’s a reason – you’re probably boring.” Boring is safe – but it’s not what gets people interested in you or your products or services. So find or develop something about your business that customers will rave about.

4: Referral Marketing needs a system

Embrace the value of what you do, develop a system around it and let your customers know about it at every opportunity. Putting a referral marketing system on auto-pilot takes the heat off you feeling you’re ‘begging’ for work. Use this one strategy and you’ll reap rewards.

5: Authenticity builds trust

Reliability, consistency and repetition are the foundation tools of referral marketing. People know when you’re not being genuine – it doesn’t feel right. Being consistent and reliable demonstrates your authenticity.

The module Blueprint CPD module Referral Marketing counts towards your CPD points requirement for your builders license.