{"id":51941,"date":"2021-10-17T16:24:58","date_gmt":"2021-10-17T20:24:58","guid":{"rendered":"https:\/\/www.shortform.com\/blog\/?p=51941"},"modified":"2021-10-28T09:43:53","modified_gmt":"2021-10-28T13:43:53","slug":"customer-referrals","status":"publish","type":"post","link":"https:\/\/www.shortform.com\/blog\/customer-referrals\/","title":{"rendered":"Allan Dib: How to Get Customer Referrals"},"content":{"rendered":"\n

How can you get more customer referrals? What can you do to encourage people to recommend your brand? <\/p>\n\n\n\n

Focusing on existing customers should be a key part of your marketing strategy. This involves getting your customers excited about your brand and encouraging customer referrals.<\/p>\n\n\n\n

Here are some easy ways you can encourage customer referrals.<\/p>\n\n\n\n\n\n\n\n

Encouraging Customer Referrals<\/h2>\n\n\n\n

Marketing expert Allan Dib says that if you want customer referrals, you first have to get your customers excited about your brand. You could do this by giving them an extraordinary customer experience that they won’t forget. <\/p>\n\n\n\n

Dib notes that most businesses stop marketing to a customer once she buys something\u2014however, this way of thinking limits business growth<\/a>. Developing customers into superfans generates ongoing revenue and can help you launch new products because superfans will test the products and evangelize for them. Importantly, making your existing customers happy will also lead to customer referrals. <\/p>\n\n\n\n

1. Get Your Customers Excited<\/strong><\/h3>\n\n\n\n

Dib repeats an often-quoted statistic that people are 21 times more likely to buy from a business they\u2019ve already bought from than one they haven\u2019t bought from. So you\u2019re leaving money on the table if you don\u2019t tap into their potential long-term value.<\/p>\n\n\n\n

(Shortform note: Dib recommends calculating customer lifetime value<\/a> or CLV\u2014how much money a customer will bring to your brand throughout their time as a paying customer. The basic formula is: average order value x purchase frequency x average retention time in years. However, there are different formulas and variations<\/a>, and it gets complicated. Although Dib recommends calculating CLV, he doesn\u2019t explain how to apply these numbers in your marketing strategy. Other strategists say knowing your CLV can help you increase profits by identifying your most valuable customers, profiling them, and focusing on building that segment<\/a>.)<\/p>\n\n\n\n

Dib offers these strategies for getting more profit from existing customers (that is, increasing their lifetime value to your company). This approach will ultimately lead to more customer referrals:<\/p>\n\n\n\n