3 Great Reasons to Start a Customer Referral Program

1. Costs next to nothing other than time
   Referral programs are great because you can build your brand and generate leads simply from your customers saying great things about you. Besides your time, there are very few associated costs other than a creative incentive should you choose to offer one. But many customers will talk about how great you are without an incentive. People tend to talk about great products or services they love just because, and they naturally recommend brands that have proven themselves to their friends and family. After you transact with a customer have your team give them a call and ask them how they are enjoying your product or service? Tell them it would mean a lot to leave a review or to simply tell a friend how thrilled they are with your brand. This can spread like wildfire and the phone call gesture goes a long way. 
2. Increases revenue
   There is no better way to increase ROI than a referral program. When customers talk about you in a positive light, this will cause their friends and family to engage with you and become new customers or clients as well. The nice thing about this is if you offer an unbeatable product or service, this revenue will exponentially grow. Great products and services speak for themselves and customers love to tell their friends about the latest and greatest. It's human nature to share with your friends the things that make your life easier or that make you happy. A customer that has been referred by a friend or family member generally has a 25% higher lifetime value than a regular customer. This means they stay longer and they invest more money into your brand. 
3. Improves customer retention
   Customer retention is an important metric in any company. Finding new customers is challenging and can be expensive. Retaining customers can be challenging as well but it's cheaper and better for the company in the long run. The goal is to find quality customers that stick around and remain loyal to your brand. It just so happens that people who participate in referral programs are more likely to be loyal to that particular brand. And your reputation will strengthen when your customers are advocates. Also, retaining current customers is much less expensive for a company than acquiring new customers. So start your customer referral program now and start increasing revenue, and improving customer retention by finding higher quality customers who will naturally build your brand and become invaluable brand ambassadors.
   
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