People are 4x more likely to buy when referred by someone they know (Nielson).
Generating referrals is one technique every small business should have in their marketing arsenal.
In a previous guide, we showed you how to use ehuhb to expand your network and build relationships with more businesses. And, a key part of having valuable relationships with other companies is passing referrals to, and receiving referrals from, your network.
In this guide, we’ll briefly introduce referrals and their importance before moving onto how the tools within ehuhb make it easier than ever to send and track your referrals to boost your conversion rate by up to 3 times.
An introduction to referrals and why they are important
1: What is a referral?
Referrals are one of the best kinds of lead a business can get.
A referral is a recommendation of your business, by someone in your network, to a potential client that needs what you offer.
The power of this kind of lead is trust.
Because when you’ve been referred by somebody the client already knows, and trusts, the conversion rates are much higher when compared to leads generated by other means.
In fact, according to an article on the HuffPost, many referrals have a closing ratio of 15-30% with strong referrals having a closure rate of up to a whopping 80%!
2: Why are they important?
Referrals keep businesses thriving because they provide a way you can significantly lower the cost of generating leads. And, in many cases, referrals cost nothing.
Plus, because you’ll need to network to receive referrals they allow local businesses to communicate, network and create new relationships. Which, in turn, generates more business!
3: How can ehuhb help with referrals?
ehuhb can help in 2 main ways:
- It has been shown that businesses using referral management tools increase their referral generation and closure rate by up to 3 times. Inside your ehuhb account, you’ll find tools that track your referral from beginning-to-end in addition to tools to send and receive referrals from your network.
- ehuhb helps connect you with more local (and national companies) to increase your networking and referral opportunities (you can read a guide on generating new contacts using ehuhb here).
Using the referral management system
Now we’ve covered the basics of referrals and how they can help your business we’ll introduce using the referral management system.
To begin with we’ll look at how you can send referrals to your network and then we’ll move on to how to track the referrals you receive – including how much revenue referrals generate for your business.
Let’s dive right in…
1: How to send a referral
When you’ve spotted a referral opportunity for a business in your network you’ll need to send it to them.
When you send a referral on ehuhb not only are the details safely logged within the system but the recipient also receives an email alert.
To begin with, you’ll need to find the appropriate contact within your network. The easiest way to do this is by searching for the company.
Alternatively, if you’d like to browse your network to find the company, click the main menu.
Then click on the arrow located to the right of the My Network link
Next click on the Connections link. This will load a browesable list companies within your network.
Once you’ve found the recipient company the next step is to send the referral. To do this click the referral button.
Next, we need to fill out the referral details. The top section of the form asks for contact details. You should enter the client’s details and not your own.
Next we need to fill out details about the referral.
The two key details to note are the referral temperature and the message box.
The referral temperature indicates how ‘hot’ the referral is out of 5. The higher the temperature the warmer the lead. This gives the receiver an indication of how urgent the referral is and can be used as a prompt to act quickly.
The message box is your opportunity to provide the recipient with useful information about the referral. Such as when you spoke to the client, what work the client needs carrying out or your connection to the client.
The final step is to click the Send Referral button. The recipient will receive an immediate email alert and the details of the referral will be safely logged in their account.
2: Managing your referrals
Now we know how to send referrals we’ll look at management and tracking. A dedicated referral management section allows you to track your referrals from start to finish.
First, click the main menu.
Next click the My Referrals link.
The Referral Stats page allows you to track your referral conversion rate, lifetime revenue and sent/received numbers all at a glance.
To access and update information on your received referrals click the menu item of the same name.
The first section to note is the referral filters. These provide quick access to find referrals that you might not have actioned yet or to find all referrals received in the previous week – to illustrate just two options.
To the right of the filter box you’ll find your received referrals. To edit a referral click the Full Details button.
This provides full access to the referral details and allows you to add notes and updates the referral status. The notes provide a great way of logging what actions you’ve taken and when so you’re always up-to-date on the progress of every referral.
Lastly, don’t forget to click the Update button to save any changes made.
3. You’re done!
Thats’ all there is to referral management using ehuhb! These unassuming tools help keep all of your referral details in one place and makes sending referrals a breeze.
In our next guide we’ll cover how to find local suppliers using ehuhb. Click here to continue reading.
PS – If you’ve not worked your way through our the getting started guide yet. We recommend reading How To Make New Business Contacts Using ehuhb to grow your network to increase your referral opportunities.