The Power of Client Referral: How to Grow Your Business Through Word-of-Mouth Marketing

by | Jul 19, 2023 | 0 comments

The Power of Client Referral How to Grow Your Business Through Word-of-Mouth Marketing

Client referral is one of the best ways to grow your business. Other than advertising, no one can do a better job at referral generation than your existing customers. You already know them and they already like you. The purpose of this blog is to provide insights and tips on how to simplify the process of receiving client referrals.

Are you ready? Let’s go!

What is a Client Referral?

A client referral refers to the act of an existing customer recommending a company’s products or services to a potential customer. This recommendation may occur spontaneously during a conversation between the client and someone in their network, or it may be a deliberate component of the company’s marketing efforts.

In order to encourage referrals, businesses may proactively identify potential referral sources, connect with them, and request referrals. Additionally, some companies offer referral programs or incentives to existing clients who successfully refer new customers to their products or services.

Why is Client referral Important?

Sharing positive feedback about a company’s product or service can help an existing client attract potential customers who are more likely to make a purchase.. There are several advantages to receiving client referrals, including:

  • Accelerated sales process
  • Increased lead conversion
  • Enhanced customer relationships

Why is Client referral Important

What is the main issue with Client Referral?

Asking for referrals can be tricky and time-consuming. Your clients may feel uncomfortable asking their friends or family members to try your services, so they could use some encouragement.

How to overcome this?

You can resolve this problem by setting up email automation thanking them for their referral, offering special discounts and letting them know how much they are appreciated.

How does it work?

When the client enters a friend’s name and phone number into a web form, your software will issue a task for you or an STA member to call the referral. Why the old-school call? Emailing contacts without their direct permission put your email at high risk of being flagged as spam, which could lead to your messages being blocked by inboxes. Pick up the phone, then ask about opting into your emails.

What are 6 steps to get more client referrals

What are 4 steps to get more client referrals

1. Identify existing clients

To generate more referrals for your business, start by identifying current clients who are most likely to recommend your company to others. Look for customers who have expressed satisfaction with your products or services and are within your target audience. Repeat customers, who have made multiple purchases from your business, are often great sources of quality referrals due to their demonstrated confidence in your company. Once you have identified the clients you want to approach for referrals, create a list that includes their contact information.

2. Ask your clients for referrals

After you have compiled a list of current clients who you believe may be good referral sources, reach out to them and ask for referrals. When making a request, it is best to communicate with clients in person or via phone as much as possible. During your conversation, be clear about why you are requesting referrals. You may want to explain how referrals are critical for your business or remind them of the quality service they have received in the past. To ensure that your request is understood, provide specific details about what you are asking them to do. Take the time to answer any questions they may have and reinforce the reasons why you are requesting a referral.

3. Choose the right moment

Identify potential brand ambassadors by reaching out to individuals during moments when they are likely to have a net positive view of your brand. These moments may include after a recent purchase, a renewal, upgrade, or transition from freemium to premium. Additionally, reaching out after a customer has left a positive review, or after they have liked or defended your brand on social media can also be effective in identifying potential ambassadors.

Choosing the right moment to get client referrals

4. Keeping it simple

One of the most effective ways to encourage participants to share their experiences with your brand is by providing them with a safe and seamless sharing platform. This can involve offering a range of popular sharing tools, such as mobile phone apps, and enabling participants to share via links, memorable words, or codes that can be easily shared across different channels.

To maximize the effectiveness of your sharing platform, it’s important to prioritize a user-friendly design and experience. This means minimizing any potential friction points that could discourage participants from sharing with their friends and networks. By constantly reviewing and improving your sharing platform, you can ensure that it remains as simple and easy to use as possible and that it continues to drive positive engagement and referrals for your brand.

5. Be on the same page with your clients

Before asking for referrals, take the time to understand your customers’ values. Conduct research to learn more about what is important to them. By doing so, you can tailor your incentives or acknowledgments to align with those values and demonstrate the impact that their referrals will have.

If your customers understand that you have similar values and interests, they will be more willing to recommend your business to others.

However, it is crucial to be genuine about these values and not use them solely to benefit your business. Customers can sense when your attempts are insincere, and they may speak out about it to others. Therefore, it is essential to authentically align with your customers’ values to build a lasting relationship based on trust and shared beliefs.

6. Show your appreciation

Showing your appreciation to your clients

When you receive a referral, it is essential to express your gratitude to the person who referred the lead to you. Expressing gratitude for referrals not only demonstrates your appreciation for their efforts but also nurtures your relationship with them. Whether or not the referral leads to the business, acknowledging the referrer is a crucial step in building a client relationship.

To thank the referrer, you may choose to send a simple email or make a phone call to express your appreciation.

The specific approach you take to show your gratitude will depend on your business and the type of relationship you have with the referrer.

No matter what method you choose, remember to be sincere and genuine in your thanks. Taking the time to express your appreciation will not only strengthen your relationship with the referrer but also leave a positive impression on them and the referred lead.


In a nutshell, client referrals are one of the most valuable forms of marketing for small businesses. It is a win-win for everyone involved. You win because you get new customers and they win because they get a great product/service. It is a huge benefit for everyone involved.

Thank you for reading this article and please feel free to share it with your friends and family.

Before you go, I want to offer you something. It is a coaching program that helps you grow your business to get more leads, make more sales, and change the world.

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We know that it’s not easy to grow a business—you’ve got to be willing to put in the work, and that can be scary. But that’s why we exist. At Businessgenix, we’re here to give you the support and accountability you need to keep growing and succeed.

Our weekly coaching calls will help you set goals and track your progress toward them.

Our weekly accountability checks will remind you exactly how far along you are in reaching those goals. And our daily support from myself and my team will keep us connected throughout the week so we can answer any questions or concerns that come up as they arise.

It’s time for you to take charge of your own success—we’re here to make sure it happens!

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Now, I’d love to hear from you.

Did you find these steps on small business marketing helpful?

I want to know about your journey. Let me know in the comments below and as always feel free to contact me!

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