TRUTH or DELUSION? Customers generated through referrals have a longer “shelf life.”
TRUTH. Studies have shown that customers who come to you by referral do remain customers longer, all else being equal. They come in on a higher relationship level than other customers because they come in on someone else’s trust and confidence. The friendship and trust between your prospect and your referral source spills over to include you.
There is an interesting dynamic among people who look to others for referrals. I have a friend whom others look up to and want to emulate. It’s as though by doing business with the same people she does business with, they will become more like her (and that’s a good thing because she’s a wonderful person). So when she refers someone to her circle of friends, they want to stay with that person as long as she does. If they were “shopping” for the right hair stylist, they might bounce from salon to salon, looking for something better each time, but when they are referred to the hair stylist she uses, they stay with that stylist longer.
– ELIZABETH MISNER
Even if you don’t make the initial sale, the fact that they were referred often brings customers back for a second shot and a greater likelihood of future business. They’ll keep your card and remember it the next time a need for your product or service arises, and they’re more likely to refer you to others – all because someone they know and trust recommended you.
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