Customer referrals are a powerful way for managed service providers (MSPs) to bring in new business. In fact, a potential customer is four times more likely to make a purchase when referred by a friend or colleague.
Referrals stem from trust, results, and reputation, so if you have happy customers, you’re already in a solid position. However, many businesses don’t have an intuitive referral process and instead believe that customer satisfaction will naturally lead to recommendations. By making the process easy for customers and proactively encouraging clients to spread the word about your services, you can set up your business for growth.
Here are three ways that MSPs can turn happy customers into business traction:
1. Encourage Clients to Refer Others
Some customers may not have referrals on their radar. You can encourage customers to speak out about your business by promoting your referral program and encouraging them to participate.
Promote your referral program by making sure that the link to the program is easily accessible, and track the methods that are the most successful. Additionally, make sure that your promotion of your referral program aligns with existing marketing efforts.
Here are some things you can do:
- Strategically position the call-out to your referral program in a visible place on your MSP’s website.
- Include a referral form in emails and messages to customers, including welcome emails in the MSP customer onboarding process.
- Make sure that your internal teams that work directly with customers include a banner ad link to the referral program in their email signatures.
Ask your customers directly if they would like to participate. If your customer has recently engaged with a customer satisfaction survey that showed how happy they are with your business, you can reach out directly to them as well.
2. Simplify the Referral Process
Your customers are busy, and they are going out of their way to recommend your business, so you want to make the process as seamless as possible.
- Design an easy process for referrals, which includes options for customers to sign up and then start sharing with their colleagues. Make sure you include a clear and concise call to action—and if you are including an incentive, highlight that as well.
- Consider utilizing multiple referral channels. While many programs utilize email referral options, social media awareness and word-of-mouth at community events are also valuable areas where your customers can make a difference.
- Make sure that you follow up on every referral, both with the customer who made the referral and the new lead. Be sure to thank your customer for going out of their way to make the connection—this could encourage them to make more referrals in the future.
3. Offer Meaningful Incentives
For some customers, the added bonus of incentives may be the final push they need to make a referral. You can be creative here, depending on the amount of upfront money that you’re able to invest in your referral program.
Here are some ideas for referral incentives:
- A cash reward through gift cards, or charity donations if it’s the holiday season
- The offer of a discount or a free month of service
- A competition where clients that make the most referrals get a prize
The End Result: More Business
Referrals from happy customers can help you grow your MSP business. The most critical factor is creating a solid relationship with your customer from the start. However, by building and promoting a referral program that includes incentives, you can bring in a whole new stream of potential clients.
Use this form to get the information you need from your new client to onboard them properly. The pack includes:
- a ready-to-print PDF file
- an Excel file to help create a customizable document
