If you're looking to effortlessly attract new customers, the solution is likely right under your nose—and you might not even realize it.
You can significantly grow your business without spending any extra money. How, you ask? The answer lies in referrals.
Why Referrals Matter
Before you dismiss this as old news, consider this: 84% of B2B decision-makers say the buying process starts with a referral, yet only 30% of B2B companies have a formal referral program.
This means that many businesses, maybe even yours, are missing out on a huge opportunity.
Whether you’re in B2B or B2C, the stats are clear—customers are 90% more likely to trust and buy from a brand recommended by a friend, and referred customers have a 59% higher lifetime value. They’re not only easier to close, but they also tend to spend more.
Maybe you already have a referral program, but it's been gathering dust. It’s time to give it some attention, because we’re about to share five fresh ways to boost your referrals.
Think about all the time and money you're currently spending to attract new customers through ads on social media, Google, or other channels. Now, imagine if each of your existing customers referred just two people.
For example, let’s say you receive 200 referrals and close 10% of them. That’s 20 new customers or clients, without any additional expense. Your existing clients just brought them to you.
And here’s the key: as long as your referral rate outpaces your turnover rate, your business will keep growing. If your churn rate is 10% and your referral rate is 20%, you’re growing at a 2 to 1 ratio. The strategies we’re sharing will help you get real referrals from your clients.
How to Increase Your Referrals
You can increase your referrals by using these methods:
Ask, and Ask the Right Way
Reward Your Clients for Referrals
When People Ask for a Discount
Give a Free Plus Two to Your Events
The Gift Card Method
Offer the Best Product or Service in Your Niche
Referral Method #1: Ask, and Ask the Right Way
You might know you need to ask for referrals, but many people forget or hesitate. It’s easy to let it slide. Often, people don’t ask because they’re afraid of losing the sale. Here are two ideal times to ask:
Right after closing the sale: When the customer is excited and the deal is done, say, “We’re thrilled to work with you! By the way, who else do you know that could benefit from our services?” This phrasing prompts them to think, rather than giving a simple yes or no.
When they’re happy with your service: Whether it’s after a great dog grooming session, a successful home renovation, or clear skin after months of facials—whenever they’re most satisfied, that’s the time to ask for referrals.
Referral Method #2: Reward Your Clients for Referrals
You can approach this in several ways. For instance, offer a discount for every five referrals they send, or go a step further like we do: offer a discount when those referrals actually convert into sales.
We offer our clients a 10% recurring commission for the lifetime of the clients they refer. This ensures you’re getting quality referrals. You could also set up a tiered rewards program where clients earn bigger rewards the more friends they refer.
The key here is to make the incentive comparable to what you’d spend on a lead magnet for cold customers, so it doesn’t cost you extra.
Referral Method #3: When People Ask for a Discount
When a customer asks for a discount, flip the script. Say, “Sure, I’d be happy to give you a discount—just refer three people to me first.” This method turns their request into a win-win situation.
Referral Method #4: Give a Free Plus Two to Your Events
If you host workshops or events for existing clients, give them a “plus two” to bring along new leads. Don’t sell to these new people at the event; instead, casually collect their contact information and follow up later. This is an easy way to generate new leads if events are already part of your strategy.
Referral Method #5: The Gift Card Method
Offer your customers two gift cards to give to friends, equal to the value of your lowest-tier product or service. This gets new customers in the door, and since referrals are likely to spend more, it’s a strategy that often pays for itself.
Add urgency by setting a 30-day expiration date on the gift card. You can also tie this method to Referral Method #2 by rewarding the initial customer if their gift card leads convert into clients.
Referral Method #6: Offer the Best Product or Service in Your Niche
Ultimately, the most effective way to get referrals is by offering an outstanding product or service. When your offerings are the best in your niche, your customers will naturally want to refer you. If your customers are happy, they’ll spread the word.
FAQs on Getting Referrals
How can I get quick referrals? Offer your existing clients an incentive or reward for referring new customers, and increase the reward if the referral converts into a paying customer.
How do you find people referrals? Provide an excellent product or service that motivates your existing customers to refer your business to friends and family. Speed up the process by offering an incentive for each referral.
How do you attract referrals online? Offer a valuable lead magnet and an incentive for the person referring you. This gives both your existing customer and the referral a reason to reach out.
Using these referral methods will help you work smarter, not harder, by leveraging one of the most effective marketing strategies—referrals.
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