How, Where and Why to Ask for Referrals in the Customer Journey

by Benj Miller | Jun 27, 2023

One of the best ways to generate new business is through referrals from your existing, happy clients (we call these champions). Asking for and receiving referrals is a proven tactic, but you have to do it strategically along the customer journey to generate the most impact. 

Here are some tips for how, where and why to ask for referrals:

Why ask for referrals

There are several benefits to gaining more referrals from your champions.

1. Higher quality leads. These referrals come pre-vetted from a trusted source. 
2. Shorter sales cycle. Referred leads already know about you, so the education process is faster. 
3. Higher conversion rates. Research shows referral leads convert at a rate 2-5 times higher than typical leads.
4. Increased lifetime value. Clients who come through referrals tend to have higher satisfaction and loyalty.

Where and when to ask for referrals

The best times to ask for a referral are:

1. Right after delivering a successful project or service. Emotions and satisfaction levels are high, so they will be primed to spread the good word. 

2. During a client satisfaction survey such as NPS. As part of your regular check-ins, include a question about whether they would refer you to others. This prompts them to think about referrals in a logical, considered way.

3. Face-to-face at a meeting. Asking for referrals in person, especially if you have a strong relationship, can be very effective. People find it hard to say no in person, and you can address any objections or concerns on the spot.

How to ask for referrals

Be direct but polite. For example, say something like, “We have enjoyed working with you and value our partnership. Would you be willing to refer us to any colleagues or connections you have that could benefit from our services?” 

NOTE: It may be worth including referral incentives to make it worth their while. 

To boost your referral generation, ask directly and strategically. With the right approach, champions can become a major channel for new business growth.