Business Owners: 3 Actions for Getting New Leads through Customer Referrals

As a business owner looking for ways to generate new leads and improve retention, your success depends on understanding your customers’ needs better than they do themselves.

A customer success story can be a great way to showcase how well you truly understand your customers and presents a strong case for why prospects should pick you over your competition. From working with hundreds of businesses over the past 10 years, I believe that referrals can potentially be the most valuable source for lead generation for your business. In my experience however, referral marketing has remained an untapped source of lead generation across most businesses.

Many businesses owners think of referral programs as rewarding customers for spreading the word about your business. The downside of rewarding customers to promote your business runs the risk of your business coming across as inauthentic and manipulative. However, there is a more authentic and empowering way to build a referral strategy for your business that does not require bribing your customers to tell their friend about your business.

@fablesquare -

A customer success story is a great way to showcase your amazing work while elevating the status of your customers.

When done right, developing customer success stories for generating referrals can significantly boost lead generation compared to other forms of lead generation such as cold calling and email marketing. A study by Heinz Marketing found almost a 200% increase in leads across businesses with a referral program compared to companies without a formal referral program.

Drawing on my own experience on the physiology of customer decision making and social influence marketing, here are 3 action points you should take to effectively structure your referral strategy.

  • Customer Success Stories – Showcase the great work you do by developing customer success stories.

  • Publish – Use your blog as a publishing platform to showcase your customer success outcomes.

  • Test – A/B Test the messaging of your success stories through a Maslow messaging strategy on Twitter prior to running paid Ads campaigns.

Rather than bribing your customers to spread the word, I recommend you embrace your customers by placing them at the centre of your story to showcasing the value you deliver for your customers through a well-structured customer success story referral strategy.

My name of Tanoj and I am the director of DEUS Marketing {Ai};. Our mission is to help businesses continually engage and delight their customers in new ways.

I have over 10 years of experience in digital media across search, social and programmatic advertising. I have had hands-on experience with machine learning and neural network algorithms, as well as applying systems thinking approaches to modelling complex problems. Reach out or connect with me at @DEUSMarketingAi

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