Four Rules to Maximize Customer Referrals Now

When your customers become superfans, they don't just come back; they advocate on your behalf and encourage their friends and family members to become customers, too. These referrals aren't just a bonus; they’re necessary for sustained growth.

Did you know that referred clients are 36 times more valuable than cold calls and four times more valuable than web leads? According to Inside Sales, they’re also twice as likely to come back for more.?

You have more competition now than ever before. You’re not just competing with all the new players in your industry, but also with all the things taking your prospects’ and customers’ attention. That’s why word-of-mouth marketing is so important. According to Neilsen, 88% of consumers trust recommendations from friends and family over any other form of traditional advertising.?

If you had to estimate, what percentage of your business in 2024 came from referrals?

Last month, I spoke to a group of entrepreneurs across all industries and challenged them to track their customers using these four categories:

1. Paid: These customers come from marketing campaigns, ads, or promotions. You spent money to acquire them.
2. Reputation: Those who find you based on your reputation (Google, social media, seeing your booth at a community event, etc.)
3. Repeat: Customers who come back after a great experience with you
4. Referrals: Customers who are sent to you by other happy customers

Where do your customers come from? If you look at your 2024 numbers, what does the distribution across these buckets look like? And more importantly, what do you hope it will look like in 2025? Having a balanced approach is great, but the more you can tilt the scales toward repeat and referral customers, the stronger your business will be.

So, how do you earn more referrals? Obviously, the first step is to create an experience worth sharing — that’s the barrier to entry. But we can’t just create a WOW moment and pray for the referral.

Here are my four rules to follow for maximizing referrals:

1. You can earn referrals long before the deal closes.?

Creating a referral-worthy experience starts the moment a prospect first learns about you. Set the tone early with stellar communication, helpful resources, and genuine connection. In my keynote, I tell the story about the first time I ordered something from Chewy.com. I was so impressed with my checkout experience that I was already telling my friends about them before I ever got my first shipment of dog food.?

2. The deal closes, but the experience continues.?

The work doesn’t end once the contract is signed or the home is sold. Keep the momentum going by exceeding expectations post-sale. Follow up, check-in, and ensure every interaction is as amazing as the first. When you stay top-of-mind with your customers, you’ll significantly increase your chances of being remembered and referred. I like to send small treats and cards throughout the year to remind my clients that I care about them! What can you do to share relevant and helpful information or stay in contact with your customers?

3. Ask, and you will (often) receive.?

Don’t be afraid to ask for referrals! Your superfans are more than happy to share your business with others, especially if they know you’re looking to grow your community. You can say something like, “If you have any friends or colleagues who would benefit from our [product/service], I would really appreciate an introduction—especially if they’re as great as you! I’ll make sure any friend you send this way gets white-glove treatment.” You can also offer a referral bonus to incentivize them further.

4. If you want to earn more referrals, give more referrals.?

Relationships are a two-way street. The more you support and recommend others, the more likely they will do the same for you. Often times after I speak at an event, I’ll reach out to the planner and ask them if they’d like recommendations for the following year’s conference. It gives me the opportunity to be helpful to my client AND my speaking colleagues — the ultimate win-win!

If you’re looking for a step-by-step, foolproof system for boosting your referrals, check out the Referral Partner Transformation Course from my friends at Gift-ology Group. It will help you:

• Identify your most valuable relationships
• Add value without being awkward or spending a ton of $$$
• Create a sustainable referral process that actually works

This course is offered at a huge discount through October 30th (tomorrow!). If you sign up now, you’ll also get tons of bonus resources from experts in personal branding, sales, and CX (and even a few from me!) Plus, you’ll be helping the business founded by my late friend, John Ruhlin. You’ll learn how to create a referral machine that will support your business for years, and you’ll be helping honor John’s legacy.

Learn More

“What is it worth to stay top of mind with our most important clients or friends? Priceless!”

John Ruhlin