Be remarkable. Establish trust. Engage customers. Ask the question. Offer incentives. PHILOSOPHY Referrals are not only central to maximising the lifetime value of each customer the ultimate measure of just how customer-centric an organisation is. Great businesses derive a high proportion of their income from referrals or reviews in a more contemporary context. My […]

  Be remarkable. Establish trust. Engage customers. Ask the question. Offer incentives. PHILOSOPHY Referrals are not only central to maximising the lifetime value of each customer the ultimate measure of just how customer-centric an organisation is. Great businesses derive a high proportion of their income from referrals or reviews in a more contemporary context. My philosophy of referrals and maximising referral rates can be summarised as follows: The lifetime value of a customer extends beyond their expenditure and includes the referrals and reviews they provide. It is impossible to maximise a customer’s lifetime value without maximising referral rates. Referral rates, in addition to being central to maximising lifetime value, are an important measure of the health of a business. Unfortunately, too few businesses address referrals effectively: Only 10% of businesses have tasked marketing with managing the referral program. DEFINITION The term ‘referral rates’ can refer to the percentage of revenue derived from…