Referrals and word of mouth

Customers bringing you customers. The cheapest acquisition there is, and rarely asked for.

What it means

A referral is an introduction from an existing customer, partner or contact.

Why it matters

Referred customers convert at higher rates, buy sooner and stay longer, and the acquisition cost is effectively zero.

What it looks like in practice

Ask. Most satisfied customers would refer and are never asked, and the moment to ask is right after something has gone well.\n\nMake it easy: tell them specifically who you are looking for rather than asking generally.

What to watch out for

Referral fees that are not disclosed, which can be a problem in regulated sectors and is a trust risk everywhere.

Where to get proper advice

Your own pipeline data and your own customers, asked directly. Most of this is not answerable from outside the business.