How to grow your business through referrals

In today’s fast-paced and competitive market, referrals play a vital role in the success of a business. These recommendations by existing customers or clients encourage potential new customers to use a product or service. For a business owner, referrals are a supercharged tool that helps establish credibility, build trust, grow your business, and expand your customer base. 

We’ve compiled a list of creative ways to strategically utilize the relationships you’ve worked so hard to build. Whether you’re looking to enhance your current referral program or implement new ideas, we have you covered with insights on how to get referrals, accelerate growth, and set up your business for long-term success.

Types of business referrals

Each type of business referral plays a crucial role in building your business’s reputation, growing your customer base, and expanding your reach. Here are types of business referrals that might fit your business strategy:

• Customer referrals. Customer referrals happen when existing customers recommend a product, service, or business to their family, friends, or colleagues. They’re the most familiar type of business referral and rely on a customer’s genuine satisfaction. Customer referrals most commonly occur through word of mouth, making them a highly-valued method of growing your customer base at a minimal cost. 
• Client referrals. Client referrals establish a relationship between your business and another. For example, a marketing agency that successfully increases a client’s brand awareness may get referred to another company looking for similar results. Over time, client referral programs can lead to long-term business partnerships and a larger footprint in an industry. 
• Networking referrals. Networking creates opportunities to make connections and grow a business. These referrals commonly occur during networking events, leading to potential clients, partnerships, and business expansion.
• Complementary service referrals. Complementary service referrals enable a business to enhance their customer or client’s experience by referring them to a related service. For example, a marketing agency working on digital advertising for a client might recommend a web design firm or freelancer to build their website, or an event coordinator might refer their customers to a catering company.
• Influencer referrals. With the rise of social media, businesses have started collaborating with social media influencers to promote a brand, product, or service to their specific audience. This leads to a rapid increase in awareness and credibility with that influencer’s audience—and brings in an entirely new group of customers for you.

How to generate business referrals

Building your business goes beyond simply knowing how to ask for a referral. Harness the full power of referrals with our list of seven strategies and creative ways to get referrals, along with tips to encourage customer and client loyalty, enhance support, and increase your reach.

1. Create a referral program

An intentional referral program is one of the most effective strategies to gain referrals. Start by determining your goals, choose the referral program idea that best suits them, set a clear path for your program, and measure its success. 

Define how your referral program will work by deciding:

• Who will participate in the program
• What method customers will use to refer others 
• How long the referral program will last 
• How long referrals will be tracked for
• What incentive you’ll offer (discounts, cash rewards, gift cards, exclusive access, other insider perks, etc.)
• How you’ll promote your program (website, email, social media, in-person, etc.)

Gauge the success of your referral program by monitoring participation and the overall impact on sales. Use your communication channels to gather feedback and either tweak your current strategy or employ successful tactics for a future referral program. 

2. Host appreciation events

Client or customer appreciation events are a dynamic way to engage your loyal base and show how much their support means to you and your business. Beyond expressing your heartfelt thanks to current clients, these events also aim to inspire future client referrals by leveraging word-of-mouth marketing. With Paperless Post, you can easily create appreciation event invitations as part of a successful event marketing campaign.

After you choose the right invitation design for your event, customize it with your company’s colors and fonts, and upload your logo for seamless brand integration and a polished, professional look.

When you’re ready to send your invitations, email or text them via our platform, embed them in your preferred email platform like Salesforce or HubSpot, or create a shareable link to your event that you can post anywhere. Then, monitor RSVPs in real-time with our Analytics view featuring easy-to-read graphics.

3. Send personalized thank you cards

Sending thank you cards lets you express appreciation after an interaction or purchase, strengthen your relationships, and cultivate customer loyalty. Here’s how to send an effective business thank you card:

• Spotlight your brand with Paperless Post. Customize your thank you card design with your company logo, colors, and more. Once you’ve finalized your design, upload your recipient list and include a personal note for each individual before sending.
• Craft a meaningful message. State the reason for your appreciation and include details that remind the client of their unique experience with your business. 
• Send it promptly. Ideally, thank you notes should go out within a week of an interaction, while the experience and your company are still at the top of the customer’s mind. Schedule Paperless Post thank you cards ahead of time, ensuring that they arrive in a timely manner.
• Include an incentive. Offer a discount or exclusive reward to customers who refer a friend, creating a win-win for both existing and new clients. 

4. Create shareable content

Producing high-quality content positions your company as an industry thought leader, and lets clients and customers share important information with their networks. 

Start researching your audience and what they’re looking for by checking your website’s analytics or conducting social media polls and customer surveys. Develop a variety of content to reach your audience wherever they are—through social media, YouTube, or via email or text. 

Some tried-and-true forms of content include: 

• Blogs
• Video tutorials
• Guides
• Infographics
• User-generated content (reviews, testimonials)

This type of content is a valuable opportunity for your company to continue to build trust with your audience and encourage them to share your expertise with others. Additionally, leveraging digital content can help you reach a broader audience and enhance your customer base.

5. Communicate regularly with clients

Maintaining regular communication with your client base helps keep your business at the top of their minds, leading to referrals when someone needs the services you offer. Share success stories, product updates, special features, and client testimonials via newsletters, emails, and quarterly or annual reports.

Holiday cards are another opportunity to stay in touch and bolster relationships. Customize your business holiday card with your company logo and colors, and add a thoughtful message of cheer going into the new year.

6. Promote collaborative giveaways

Partner with a complementary business for a promotion or giveaway that attracts both of your respective customer bases. Design a giveaway that incentivizes referrals, such as encouraging participants to follow both businesses on social media, share the giveaway post, and tag their friends in the comments. 

After the promotion, announce the winners and thank all participants for joining in. Review metrics to understand the campaign’s success and follow up with new clients. These initial touchpoints present the best opportunities to build new relationships and convert them into clients.

7. Host referral challenges

Engage your customers in a friendly competition with a referral program idea that encourages participation and creates a sense of community. Some referral challenge tips include:

• Build excitement. Set a timeframe for the competition that generates buzz and aligns with your business goals. 
• Establish guidelines and rewards. Decide on the competition rules and determine the number of referrals participants should acquire to win each prize. Offer multiple prizes so participants know they have a legitimate chance of winning something. 
• Spread the word. Promote your challenge via your website, social media, newsletters, and business announcements. Keep the excitement going throughout the challenge with weekly leaderboard results and competition updates.

Consider using the challenge as a way to announce a permanent referral program. Regularly update customers on their standing in the program to sustain engagement.

Build your brand and community with Paperless Post

Understanding how to get referrals for your business is essential for maintaining growth and enhancing your company’s reputation. Paperless Post makes it easy to stay connected with your audience and grow your business with customizable invitations, announcements, and thank you cards that can be sent in just a few clicks. 

Plan your next event from start to finish with our guide to inventive customer appreciation ideas. Then consult our corporate and business wording ideas to make sure your message is clear—and your customers are happy!

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