Sometimes mistaken for each other, repeat business or deal is different from referral. Repeat business like the name sounds is when a satisfied customer returns to the same business or company to get more goods or services from them. On the other hand, a business referral is when someone recommends a company to their colleagues simply because of the level of the customers’ service.
The two essential business components are interesting as the common determiner here is the level of service – either poor or heavenly great. Making sure there are repeat deals or businesses is a proven way to stay one step ahead of competitors but knowing what they both mean and which of the two business’ superpowers comes first is as well important. Successful entrepreneurs like Larry Weltman Toronto know the importance of repeat business.
- Repeat business/deal
As seen from the short description above, repeat businesses or deals create room for a referral because a customer can only vouch for what they have used before. Using a company’s goods or services and telling others about them invokes a feeling of belonging in such customers.
How to build a repeat business/deal chain?
- Follow up with customers’ buying culture.
- Don’t just follow the money, rather understand and develop a healthy relationship with customers.
- Take post-purchase surveys and work on the customers’ answers.
- Be consistent yet adjustable.
- Make room for loyalty programs.
2. Referrals and the power of word of mouth/review
Positive referrals and word of mouth, as well as an online review, can be the difference between a growing company and a dying one. Getting new clients or customers can prove to be a herculean task, but if those loyal ones are properly managed, they can serve as the company’s mouthpiece where it can’t defend itself. The following is a myth about referral programs.
False beliefs about referral and proven facts that work.
- Money or free goods and services is what fuels referral – There are cases when customers get compensated for referrals, but what pushes the best form of referral is a great customer experience. Positive experiences with a company increase the company’s boundaries, as people talk about them genuinely. In comparison, organic or natural referrals remain one of the most effective forms of referral as the individuals referred won’t end up feeling like numbers like they would with a paid referral.
- There is no need for an online presence to maximize the power of referrals – Businesses are moving online, and as statistics shows, there are an estimated 12 to 24 million businesses in the whole world. So, occupying one of the spaces online and making judicious use of it should be every company’s top priority. The speed of sharing great goods or services also points to the short-sightedness of this false claim. Successful businessmen like Larry Weltman Toronto have made it easier for customers to share their experiences with their services by having many share buttons on their websites.
These two things, repeat business and referrals, are essential for any business’ exponential growth. A glance at the working mantra of Henry Ford will more illustrate this. The former is what ties long-term customers down while making sure the latter is brought into the scene. Making use of them in any business is bound to skyrocket both sales and reputation.