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Many businesses spend thousands of pounds each year on expensive advertising campaigns to attract more customers, yet what they don’t realise, is that one of the most cost effective way of generating new leads, is through existing customer referrals.

There are lots to consider before putting together a referral strategy for your business, one of the most obvious is choosing the right strategy for your business.  There are probably more than a dozen different strategies that you could use in your business right now. But putting a referral strategy into place, is not as easy as it sounds, look into the pros and cons of each one before you make your decision on which one to choose.

One of the most important things to consider is what you’re going to offer to make it worthwhile for your customer to give you the referrals to their friends. If your offer does not give value for money, it won’t motivate your customers to take give you those valuable referrals. But be careful that you don’t cut too far into your profit margin, find a sensible balance.

Consider whether your customers believe you deserve the referrals, if your customer service, or your products are not good enough, then it’s very unlikely that people will rush to give you the names of their friends.  When searching for the correct strategy for your business, you also need to consider how much effort your customers need to put in to give you a referral. No matter how much people like you and your business, they won’t spend all day filling out forms, or answering one hundred questions, just to give you a new lead.