According to the Wharton School of Business, a referral customer costs less to acquire and has higher potential for retention and loyalty. On the other hand, marketing analysts say that a referral customer has a 16% higher lifetime value than a non-referred customer.
As a matter of fact, one of the best insurance marketing tools that you can use is to get referrals and recommendations from people who have first-hand experience with you and who have been happy with your products and services.
People who have first-hand experience are believable and certainly, are highly credible brand ambassadors. They can very well promote your company.
Testimonials are indeed powerful marketing tools. Thus, experts say, it is important that you keep track of your clients and take note of their potential to become your brand ambassadors.
So, how do you get quality referrals from your customers? Here are some tips so that you get good referrals and leverage from customer feedback.
First, identify your advocates. Your potential advocates are your existing customers. You have to be on the lookout for people who have been very happy with your products and services, they have the potential to become your brand ambassadors.
While it may not be that difficult to spot these people, marketing experts recommend the use of a Net Promoter Score (NPV) survey to help you pinpoint potential advocates.
This survey sends out one particular question to your existing customers. This will ask them how likely it is that they’d promote and recommend your company to a friend or colleague.
Respondents will be asked to rate their answers from 1-10 scale, with ten as the most likely. Those who answer from 1-6 are considered “Detractors”, 7-8 are “Passive” while those who answer 9-10 are “Promoters”.
You would most likely get referrals from this group of customers. Once identified, constantly make follow ups.
Reach them out personally to see if your promoter would be interested in referring your company. This is your initial step of turning your customer feedback into a growing referral machinery!
You are now ready to translate this willingness to promote into testimonials. Of course, you have to make sure that those who give them to you are okay with you sharing them in any media platform.
Experts suggest that you secure written permission from your customers if you have plans of using their feedback and testimonials in your marketing campaign. We have to do this because we surely would not want to encounter problems in the future!
Once you have testimonials, you can add them to your website. You can have a testimonials page on your website.
Put it somewhere that is readily visible to the one who visits your website. You can use the social media for these testimonials.
Today, a lot of companies are using Facebook and Twitter, even YouTube for their customer testimonials. This makes the testimonials reach a lot of people, your potential customers.
Experts also suggest that you may add testimonials in your direct mail campaigns. Feature these testimonials in your brochures and post cards.
You can ask your advocates if you can quote them in your own press releases. Press releases become more credible when there is proof provided by an independent, third party.
You may want to use these testimonials in your presentations at trade shows, web seminars and conferences.
Ask your customers if they can promote you on Google, Quora, Linkedln and Yelp. This will make you appear high in search engine results pages.
Still, experts suggest that you can use photos and quotes from customers in your trade show booths and in your company or store reception area.
There are even companies that use testimonials in their advertisements, so you may consider doing that as well.
How to Get Testimonials
Now, how do you get good testimonials from your customers/ advocates? Well, it is better to contact your customers personally after you have made sales to them. Ask them for feedback.
Then ask their permission if you can use their feedback in your marketing campaign. Perhaps, you may want to offer a token of thanks if they say yes- a discount for a future purchase perhaps, or any small item of value.
Encourage the use of video testimonials. Video testimonials, they say, are more powerful than written ones. Videos can be used online- in your website, in social media. Add a feedback form in your site. Encourage customers to give feedback.
As they say, social proof is an important part of our day to day decision-making process. How many times did we rely on the opinion of others before making a decision? Often, certainly a lot of times in the past, right?
Referrals and testimonials therefore a very powerful marketing tools. You have to learn to use them, to get leverage in order to acquire new clients and retain your existing clientele.