Why You Should Track Customer Referrals

Posted on Mar 26th 2015 under Customer Relationships

The day you received your first customer referral may have been as big an event for you as the time when your limousine firm took its first dollar from a paying customer. Everything you do, both behind the scenes and in full view of each customer demonstrates your core values and commitment to providing the highest level of service. 

Customers give businesses a number of signals and it is important to keep your eye on what they're communicating to you about. For example, when customers resist paying for services, it may be a signal that indicates you either need to lower your prices or communicate more effectively about the benefits you provide. When the phone stops ringing and clients stay away in droves, that's another signal you need to monitor. 

One of the most useful signals you can get is in the form of a customer referral. As prudent owner or operator of your own business, you should always be tracking customer referrals. How often do happy customers send referrals to your limousine company? Do you know the number of referrals you get in a typical week or month? How does the amount of referrals fluctuate over the year, and what can you do about that?

As you can see, there is value in collecting this data and analyzing it on a regular basis. By tracking your overall referral rate and seeing how it changes according to different groups of customers, you will get a better view of your future income, notes a recent post at Word of Mouth. Analytics are useful for showing you how profitable each customer is, as well as the value of one referring customer over another. Some of your customers may wind up becoming major brand ambassadors, so it's good to be aware of what they're doing since they can drive future sales.

As you discover which types of customers provide more referrals and which do not, you can fine-tune your approach and enhance the customer experience. Each incremental change will focus on giving better service so that eventually more customers will feel compelled to share details about your limo company with friends and colleagues.

DriveProfit's team of limo marketing professionals have more than 30 years of experience helping our clients get a better return on their marketing investment by paying close attention to referrals. For more information on tracking customer loyalty or to get started with a program to boost the referrals you get, please contact the experts at DriveProfit today at 203-426-7780 or at info@driveprofit.com.

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