This post was sponsored by Utility Telecom, which has re-launched its customer referral program.
In this piece, Utility Telecom will explain the benefits of offering a customer referral program.
Why Referral Programs Matter
When approaching anything new, Utility Telecom says, it’s human nature to ask a friend, family member, or colleague for some suggestions. There is no denying how powerful the right suggestion can be. People you trust will have a better understanding of your personality and your preferences and can better recommend things that cater specifically to you.
This holds true in business as well. Asking someone you know for a recommendation can be very helpful when doing business with a company you’ve never worked with before.
How Customers Benefit from a Referral Program
- Trusted Opinion of a Colleague – When someone seeking new services gets referred to your company by a colleague, Utility Telecom says, they will have access to a more trustworthy opinion than if they were to just research online or read reviews.
- Rewards – Companies tend to offer rewards through their referral programs as a way of saying thank you. Some popular examples include:
- Additional storage space for referrals on Dropbox
- Free rides or miles on Uber or Lyft
- Credits towards a meal on DoorDash
Benefits of Referral Programs
- Low cost marketing – Running a customer referral program can be extraordinarily cost-effective. You can potentially run a referral program for free.
- Keep loyal customers happy – If your customers already love you and appreciate your service, they won’t mind telling their network. Once you add in an incentive, they will benefit in knowing they’re rewarded for their recommendations.
- Increased closing rate – According to Huffington Post, companies will see a large increase in closing rates when a potential lead comes from a referral versus a traditional cold call.
- Referred customers stick around – Customers who have joined your service via referrals are more likely to remain loyal customers. This is because they’ve already gotten to know your company and its key features.
Customers and their referrals can both benefit when upgrading to Utility Telecom. Using a custom link, customers can refer as many of their friends, family, and colleagues as they’d like. Learn more about Utility Telecom’s Customer Referral Program here.