A referral represents an introduction or recommendation provided by an existing satisfied customer, partner, or peer advocating that a business, product, or service may provide value to a new prospect. Referred leads convert at much higher rates given established trust and third-party credibility.
Sales teams can actively request quality referrals from happy clients and enable referral sign-up or sharing on websites and social media. Focused referral programs, rewards, and support resources help generate referrals. Thanking referrers remains important.
Maximizing referrals depends first and foremost on exceeding expectations to create promoters. Referral key performance indicators like volume, conversion rate, and revenue per referral enable measurement for improvement. When cultivated strategically, referrals become invaluable sales channels.