Ever wondered how most of us make our buying decisions?
Think about it for a moment…
You want to buy a car – Do you trust the AD in the newspaper or the recommendation from your brother?
You want to try a new restaurant – Do you trust the banner on Youtube or go to your best friend for her suggestion?
You are looking to invest in a house – Do you go for one of the cold-calling real estate agents or would you prefer an agent recommended by a friend?
You are looking to hire a new employee – Will you go through endless resumes or consider a trusted colleague’s reference?
That was not a tough game, was it?
If you found yourself going with the second option for most questions, you are not alone.
Numbers Don’t Lie: Referral Marketing is a Massive Hit across all Industries
A whopping 92% of consumers around the world say that they trust word-of-mouth or recommendations from friends and family, making Referral Marketing the most Influential Form of advertising.
After all, why wouldn’t you trust a recommendation from someone you know?
Referrals Versus Leads: Who is Easier To Close
A lot of marketers make the mistake of using referrals and leads interchangeably.
That’s a major (and quite common) misconception – Referrals are not leads and leads are not referrals.
A lead is a prospect who has come in touch with your business through various sources – A contact form, a Facebook AD, or by building a prospect database.
Leads are generally not expecting your call – For Eg, if you run an insurance agency and you have been handed out a database of leads of potential buyers – The buyers don’t really have an idea about what you do or your service.
Even if the prospect has voluntarily given out his/her contact details through a Facebook AD – Maybe to download a free lead magnet, they are interested in the information rather than a sales call.
You need to do a lot of “warming up” before you can close leads – Add them to an E-Mail Sequence, schedule follow-ups for a preliminary call, etc.
The sales cycle for a lead is comparatively longer and has a lesser success rate than the sales cycle of a referral.
Here’s why: A referral is a person who has been recommended your product/service by someone he knows.
So he is already in the market looking to buy, he already has some trust built due to a recommendation – You probably need to answer a few of his questions to close the deal.
The sales cycle here is way shorter, and the conversion rates much higher.
This is precisely almost every company across all sectors is Implementing Referral Marketing Programs to leverage its sales.
If you are yet to implement a referral marketing program within your company, you can stand to lose a goldmine of the easiest sales closures.
Why wait another minute?
NuOp is a referral processing utility that makes exchanging referrals fast & easy. Business Professionals who send lots of referrals usually receive lots of referrals. Use NuOp to make you and your business well known.
NuOp for Referral Marketing
If you are looking to set up a solid referral marketing campaign in your company, NuOp is here to help you out!
Our Networking Platform will allow you to build relationships that will help you leverage the right referrals for your business needs.
Your profile awaits you
NuOp is a simple tool for business professionals to track and exchange referrals with speed and ease.
Why wait? Sign Up NOW!
Diana Clough is the Content Distributor at NuOp, she also assists in blog design and website optimization. She enjoys spending time with family, sports, and doing crafts in her spare time.