Why are referral programs one of the best strategies to use in your business? There are several reasons for this. First, if you are utilizing a referral program correctly you are nurturing your current customers. You are leveraging off the relationship you have with them. Most people do not utilize this relationship well enough.
The facts are this: If someone has already bought from you, then he or she already trusts you to some degree. He or she already believes in you. So to get a referral from this person is generally less work than doing cold marketing.
Another reason why referral programs are so important is because it helps create loyalty from your current clients and customers. If you are generating a culture of referrals and always discussing referral systems and programs and referral incentives then your clients will be trained to refer business to you.