We often discuss “cold leads” vs. “warm leads.” Of course, if you had to choose between the 2, you would prefer a warm lead every time. But, here’s the problem. Cold leads are easy to generate, and warm leads are difficult!
So, how can you create a steady stream of warm leads?
Let’s start by defining warm lead. A warm lead is a person that has actively expressed interest in your product or service. While they may not be ready to buy on the spot, they know about your business and are somewhere in the buying process.
How can I create more warm leads?
There are many ways to generate warm leads. Fool.com shared a list of 6 ways to do it, which included the following: Offer deals and incentives, create a sense of urgency, maximize contact forms, anticipate customer needs, put your analytics to work, and organize a sales blitz.
Many of these focus on turning “cold leads” into “warm leads,” and that’s good! However, repeatedly, there is one type of “warm lead” that surpasses all others; Behold, the referral!
Why is generating referrals the best marketing strategy for your business?
The reason is trust. When a person is referred to your business, somebody familiar with your company decides to recommend your services. If the person trusts the person who refers the business, there is a high probability that they will trust you.
The second reason that referrals are the best is that they are the easiest to close and most likely to become referral sources. So, it’s essential to make generating referrals a critical piece of your marketing strategy.
So how can I create more referrals for my business?
1. Offer value to your partners & clients past the sale
“Thank you so much for recommending this barber, I love my haircut, and I would never have known about this without your recommendation!”
One reason people refer is that they enjoyed working with you, or they want to work with you but aren’t a good fit. Another reason is that they feel that your business will reflect positively on them if you do a great job.
2. Educate your customers on all of your service offerings
In today’s fast-paced world, many purchases are very transactional. Once you make the sale, the customer takes their product or service and moves on. Often, they don’t even realize that you offer other services they could potentially buy. For example, Bob came in for a massage but didn’t realize that you had affordable subscription packages and offered other treatments like cryotherapy.
It’s important to find ways to communicate your services, and highlight others’ great experiences so that you can bring even more value to each client. Ultimately, this yields an increase in customer lifetime value.
3. Follow-up with customers and ask for reviews
One of the best ways to get more referrals is to document your success. If you provided an outstanding client experience, asking for a review or having them complete a survey can do wonders for your business. Not only will others read and evaluate all your solicited and unsolicited reviews, but you will gain valuable insights that can inform future customer interactions.