Why “Referral” is not the best way to get customers – WAU
If you want to sell more and grow the company, you definitely can’t count on just the customers who come by referral. It is a fact that people who come by referral have a greater chance of becoming customers. That’s because whoever referred you has already done a good part of the sale for you. He talks like […]
If you want to sell more and grow the company, you definitely can’t count on just the customers who come by referral.
It is a fact that people who come by referral have a greater chance of becoming customers. That’s because whoever referred you has already done a good part of the sale for you. He talks about how his company works and shows the excellent experience he had. That is why it is highly recommended to invest a lot in great service.
Now, just relying on that referral to have customers next month is not a good strategy.
The 3 big problems of referral
Companies that depend on referrals to survive and grow tend to stagnate or even fail. This happens for 3 main reasons:
It is not possible to predict growth – as your growth depends exclusively on other people, you cannot know or estimate how many referrals you will have in the following month.
It is not possible to set growth goals – as you cannot act directly on the indications, the growth goals will be mere guesses.
It is more difficult to make investments – as it is not possible to predict the next month, it is always necessary to prevent and save money for an emergency. In this situation, it is difficult to invest more boldly.
What to do then?
The only way to not rely on referrals is to sell more actively. And for that it is necessary to invest time and / or money in bringing more contacts and potential customers to you. There are several ways to do this, but two of them are quite efficient:
- Content creation – The first is content creation. In the medium term, this is one of the cheapest ways to attract potential customers and with more sustainable results.
You can do this by creating a blog or more elaborate materials like ebooks, mini courses, videos, etc.
The main objective is to give useful information to your potential customers. That way you create a base of potential customers to contact and it is even easier to find in search engines.
An example: if you are a wedding photographer, you can create a small free ebook giving tips for choosing a professional photographer and showing some examples of cool photos taken by you. From that moment on, several of the people who downloaded the material are your potential customers.
The big advantage is that after you’ve created a good content structure, even if you decrease your investments (you shouldn’t be doing that!), The contacts “keep coming”.
The main point of attention is the need to create quality and relevant content for your audience. And the results don’t start overnight.
- Online advertising – The second possibility (which can even be done in conjunction with the first) is the purchase of online advertising. This is an action with short-term results, but depending on the market it is usually much more expensive.
Buying online advertising allows you to attract potential customers at the moment when they are looking to solve a problem. The three most common channels for this are Facebook, Google and Linkedin.
The advantage is that the results are much greater in the short term. So if you invest money today, you can already bring more qualified traffic to your site on the same day.
It is necessary to be aware that, unlike content, when you stop investing, potential customers stop coming right away.
The golden strategy
An excellent strategy is to combine content creation with online advertising. By investing in making quality material like an ebook and advertising to help promote that material, you get good results in the short and medium term.
What has your company done to run after customers?
Does your company only have referrals or is it investing to get more customers? Now that you can’t just count on it, the way is to go for it!
If you have any questions or want to tell us how you do today to attract more customers, leave a comment.
(Gabriel Costa is a marketing and sales enthusiast for SMEs and writes for the website Sell for Brides, a blog dedicated to helping wedding suppliers – and service providers in general – sell more)