The Life Cycle of Referral

How long does it take before a customer refers other people to you?

Certainly someone you know has said, “Let me take you to my favorite spot,” or directed you to a store or service provider they trust.

The question is: When do customers start sharing their thoughts about you with others?

Is it the day after they first work with you? Six months or six purchases later? Does it take two years?

Understanding what it takes to create a referral source, and knowing how long it takes for your customers to feel comfortable referring you to their network, can help position your business in the marketplace.

Referrals are probably your best source of new customers, and if you take good care of them, they generate even more referrals.

The challenge is that you must understand your customers, fill whatever gap they experience, and do it well, so that they will be ready to refer others to you.

There once was a woman who worked as a part-time marketing assistant. She needed more work, but the business owner was afraid someone would hire her away, so he was hesitant to share her expertise. When the assistant was offered a full-time job elsewhere, the business owner countered by referring her to several other people who wanted her part-time services, creating a win-win situation.

Understanding how what you offer serves the mix of the things your customers want, need, and desire, can create the right recipe for referrals.

BEFORE YOU GO

We see our blogs as opportunities for dialogue. Please share your thoughts as comments.

1. How long does it take for you to refer to others you know and trust?

2. How often do you ask your customers for referrals?

3. What insights can you share with others in regards to referrals?

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