Any Size Business

Why Are Referrals Important?

Why Are Referrals Important? When a trusted reference indicates a person who is a competent associate or makes an excellent referral, they become part of their growing referral network.When someone orders goods or services from your business on the basis of a customer recommendation, they are more likely to tell others in the industry if they have had a positive experience. If each company tells five more companies, and then those firms tell other firms, then you see exponential growth in revenue.

The Referrals Sweet-spot

If your business offers a great product or service at a good price point, then your customers will be more than willing to send your way to the referral business. In reality, 83 percent of clients who have a positive experience with your company are willing to offer their business to others as a guide.

If the sales team asks a client for a referral and gets one, this is an indication of the work that your company does for that customer. Moreover, these kinds of customer referrals instill more trust in prospective customers. In some situations, you might consider creating a referral program for customers to reap the many benefits.

Various incentives / rewards are given by different fleets to drivers making referrals. Pay the driver $200 in your referral program when they get their first load and pay another $200 after the driver has been in business for 60 days, etc. Paying the reward may not start until the new driver has entered the fleet with a lot of referral applications. There are fleets out there whose drivers are so encouraged by the extra revenue from the referral program that the money they make from the incentives matches their driver’s pay.

Your Fleet’s Best Incentive

If you have never had a referral program before, it may be difficult to see its worth. The hire you gain can make back the money put into the referral program in a short period of time—assuming they stay on as long as the average length of stay for drivers at your company.

So, to decide how much to put into your referral program, ask yourself this question: What can you pay to make referrals worth a current driver? Determine how much it will take to convince the drivers to talk to other drivers out there about you. It allows drivers to continue making referrals, while at the same time making the service more appealing for drivers not part of the program. That would be a recruiter who knows in advance which drivers are talking to new drivers.

Drivers With Drive (Pun Intended)

A positive experience with your fleet can motivate drivers who enjoy working for you, generate interest in new drivers, and encourage them to come to work for you. This is crucial to a referral based business. It creates a network of highly dependable people who go the extra mile. This cements the importance of referrals.

Paying Attention to Retention

If you have your best drivers making referrals, they’re probably looking for drivers equal to themselves, i.e. have your great drivers looking for similar drivers and you’re most likely taking on new drivers that will stay as long as the drivers who referred them.

Importance of Rewarding Referrals

Finding a way to reward drivers in your referral program shows you appreciate the work they do for you, and the extra time they put into it.

Where to Find Other Referrals

Well it just so happens that Sunbelt Finance also has a referral program and our factoring rates are great for fleets or owner-operators looking to build their own networks through referrals. We currently offer a nice chunk of change for anyone that sends us a referral where the referral becomes a client. Ask Bobbie for more information after you apply here.

 

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