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Why we love referred customers

Andy Cockburn
By Andy Cockburn — May 16, 2013

 

There are two reasons why you should love referred customers more than any other.

1. They make the best customers

Referred customers typically become your best customers. They convert quickly and at a great conversion rate because they arrive pre-qualified and with a huge amount of trust in your brand. They've been made aware of you by a trusted friend, they've been told why they should like you and they've been shown or told about what makes you different. Before they even arrive they consider you valuable and trustworthy. As a result they're happy. They're likely to spend more and have a higher customer lifetime value. They're likely to score you higher in customer satisfaction surveys. They're more likely to come back to you and they're likely stick around as a loyal customer for longer. And best of all, they're more likely to refer you to their friends.

 

 

2. They're the best people to learn from to convince others to join you

If you want to know what marketing messages you should put on your prime selling pages, then ask a customer who has just come in from a referral. When a customer joins you after having been referred you should immediately ask them why they joined you and ask the referrer why they referred you. The message that the friend passed onto the referred customer and that convinced them to come to you is likely to be your best way to attract new customers. Similarly the message the referred customer remembers is important. These are the messages that you want to be shouting about. And it's not just the sense of the messages, it's the actual words that you should be using to convince others to come and try your product or service. There's no better way to learn which selling messages you should be testing.

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