Repeat Customers x Referrals = Business Growth

Customers are the most important part of any business. In fact they are the lifeline of any business.

Millions of dollars are spent every day on customer acquisition.  Once we have acquired new customers, we must put in the work to keep them.

Good customer service and relations just doesn’t happen. We have to take the time to work at it.

One of the first principles in getting referrals and acquiring customers is to be very clear on why you are in business.  What customers do you serve? What needs does your business satisfy? What types of products or services do you offer?

Why Customers Disappear?

Of all customers who cease relationships with a business, only 1 percent can be attributed to death.  3% of the customers move to another area, and 5% take their business to a competitor.

Complaints account for 9% of lost customers, and dissatisfaction with the product or service accounts for 14%.

Finally 68% of customers who never come back are offended by the attitude or actions of the business.

In order to get repeat business the customers we serve must be satisfied. 

Getting Referrals

In order to get referrals you must be clear on your offering, you need to be clear on your target audience as to “who is your ideal client”. Clear on what you need in your business to help it grow.

Your customers would like to help you but they need to know how they can do so.

1.Offer exceptional customer service

When you give the best customer service your clients will refer other people to you naturally. Be so good that they can’t forget about you.

  1. Tell your customers

Your customers need to know that you are looking for referrals. Make it clear that your business grow through referrals. Don’t rely on accidental referrals. Remarket to the customers you have now. Offer an incentive if they refer new customers to you. And when they do, send them a thank you if you can. Also make sure that you honour the referral incentive.

  1. Repeat business

At Jiffy Lube, one of our Key Performing Indicator (KPI) is our repeat customer percentage. This matters as we would like to know how well we are serving our existing customers and if they are returning. We have customers who have been with us from the beginning.

Be remarkable, remind clients why your company is special. Give them something positive to talk about.

  1. Raving fans

In today’s world with social media, let your customers help you to grow. Let them be raving fans. Ask them to give a review when they have been satisfied with their service. In today’s digital world a retweet or review is considered the new referral.

  1. Give referrals

Find out how you can help others to grow their business. Offer to give referrals for others.  One of the best ways to serve its to give. It works both ways.

What ways do you get referrals? Leave a comment below.

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