The lifetime of how a Referral is Valuable

Where deceptive advertising and marketing gimmicks are rampant nowadays, referrals or word-of-mouth (WOM) are turning into a more powerful and trusted communication medium in business. Referrals is when someone in your network recommends your business to a new prospect. The referrer, being a trusted person within the circle provides a reference to your business and this may happen spontaneously over a conversation or as a deliberate marketing effort.

The impact and importance of referrals are irrefutable in acquiring new leads. As the National Director of CorporateConnections™ UAE Chapter, I outline three reasons why network referrals are turning into an effective marketing tool to drive business:

Trusted and reliable source

The context of referrals implies a much credible source than any other advertising channel. Referrals bring in warm leads with trust as the base of the relationship, and this allows deals to progress more easily. As a reliable source, recommendations instantly turn into active business promotion tools and encourage repeat purchases. Your sphere of influence also widens as you tap into your potential referrers’ social circles.

Badge of customer satisfaction

In digital interconnected days, the way your clients narrate their encounter with your product or service will have an influence on generating prospective leads. As a vote of satisfaction, recommendations ascertain a positive experience leading to a decrease in skepticism and a higher likelihood of closing the deal. Strong referral networks create brand evangelists and solidify your loyal customer base.

Cost-effective tool

Delighted clients are 3 times more likely to refer your brand to others in the industry. A hype about your business is generated where their companies tell other companies and so on, creating a snowball effect. The loop of recommendations leads to an exponential growth in sales without a dent in the marketing budget. Hence a cost-effective way to drive business.

By tapping into referrals, you open your business doors to more returning customers with a healthy lifetime value and that’s why building a strong referral network should be an essential component of your business’s marketing strategy.

Member referrals are one distinguishing benefit at CorporateConnections™ (CC) and have worked well for cashing in on new leads and closing big business deals. A well chartered structure and cadence of meetings encourage member interactions on a regular basis, fueling a continuous stream of quality referrals and influential connections.

I recommend you join CC, a premiere forum to accelerate both professional and personal growth. Meaningful relationships are a cornerstone of CC ethos, laying the foundation of cooperation, collaboration and referrals. Members go the extra mile to support each other and enjoy themselves together.

Chirantan Joshi is the co-founder of the E-Movers group based in Dubai and is an avid proponent of business networking. Corporate Connections UAE is his act.