65% of the average company’s revenue comes from current customers. Yet most companies don’t have structured customer referral or reference programs. This is a miss.
This summer, my wife and I bought a new house. Nice buying experience with our real estate agent. This week (5 months later), the agent called to say hi. She had a fresh-baked pie she wanted to deliver to our home to show her thanks. By the way, could she video the event of bringing the pie to our front door? With our permission, could she share the video on her social channels? Sure, why not, we said. Happy to help.
Three things happened here:
- She reconnected with us. (A reminder of our positive experience/relationship. Maybe a trigger to refer to her if we know someone in the market).
- She gave us a gift to show her gratitude. (Very thoughtful).
- She shot and posted a public video of us happily receiving the gift. (Viewers of this video can see that she creates lasting relationships with her customers).
Total investment in this simple appreciation initiative for each of her customers? Maybe $20 and an hour each? Immediate ROI: unknown. Longer-term ROI: no-brainer.
Does your company actively encourage customer references and referrals? If not, why not? Too Expensive?
Read our article Do you know your Customer Lifetime Value?