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In looking at how many software companies are growing their base, I am finding that some of the more successful ones are really investing in referrals. Now, you know I love referrals as an easy way to grow revenue, so I thought it was worth diving into a bit more.
There are 3 ways to increase your WOM Metrics:
Measure
Mandate
Magnify
Measure:
A lot of companies don’t track what percentage of customers comes from word of mouth.
This is a key metric.
HubSpot is a ninja in marketing and content marketing and 33% of their revenue comes from word of mouth referrals.
Mandate:
It has to be a mandatory work flow to ask “Where did you hear about us?”.
Ask at multiple points in the sales cycle – sales reps need to be asking and it needs to be built in the automation.
Magnify:
If you focus on it, it grows.
If you set a goal for the metric, it grows.
Bill.com just had an IPO and saw 50% of customers come from other customers.
If your percentage of WOM grows over time, that’s a good sign.
This is how I grew my business, starting from zero, with no marketing department or anything.
Accelerate It By:
Getting your customer the outcome they need with the solution you provide.
What is your mini-brand (niche)? Focus on that before you start expanding.
Systemize the referral process.
Don’t get distracted. Stay focused on where you have synergy.
Share social wins.
I’m such a fan of referrals because:
Referrals are the cheapest traffic you can get.
They cut the sales cycle in half.
They are 120-150% more profitable.
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