If Your Business Has Been Built On Referrals, Read This

If your referrals have slowed down, it's probably not about you. People are spending and recommending less across the board, and the fix is building a few more ways for customers to find you.

We know this one first hand. Referrals have always been a big part of how clients found Market & Me, and this year they've slowed right down. It's hit a lot of our clients too. We're doing what we'd tell any founder to do, and making sure we're visible in more places.

Referrals are the best kind of business. Someone who already trusts you sends someone who already trusts them, straight to your door. No ad spend, no cold outreach, just a good job paying you back.

If your business was built on word of mouth, you've done something right. People have been happy to put their name behind you.

When referrals dry up, it can feel personal, like the trust has gone. Most of the time that's not what's happening.

Why referrals dry up

People are spending more carefully, and loyalty to brands and habits is being tested everywhere.

Your regulars still rate you. They're just spending less, so there are fewer chances to recommend you.

The businesses that feel it most are the ones relying on referrals as their main, or only, source of new customers.

The problem with one channel

Every source of business has a ceiling, whether it's referrals, walk-ins, social or repeat customers. When the one you depend on slows down, you feel it straight away.

Building on referrals makes complete sense in the early years. It's cheap and it works. The catch is that you've never had to think about where else customers come from, because you never needed to.

That's where a lot of founders are right now, us included.

What to build instead

You don't need to do everything. You need to stop depending on one thing.

Start with the customers you already have. They're your warmest and most overlooked asset. Give them a reason to come back, and make it easy for them to refer you when they're ready. A follow-up or a personal touch costs almost nothing.

Then pick one way to reach people who don't know you yet, and stick with it. That could be a newsletter, a social channel, a local partnership or networking. Somewhere consistent beats everywhere.

Look at your offer too. In a tighter market, the businesses that convert best aren't always the busiest. They're the ones with the clearest reason to choose them.

Know where your next customers are coming from, rather than hoping they'll turn up.

Where to start

Get honest about your numbers. Where did your customers come from in the last twelve months? How many were referrals? If referrals stopped tomorrow, what would you have left?

Once you've answered those, you'll know where the gaps are. You don't need to rebuild everything overnight. You need a few clear decisions about where your energy goes, and then to stick to them.

If you can feel things slowing down, it doesn't mean you've done something wrong, just that it's time to build a business that doesn't rely on one way in.

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Not sure where your next customers are coming from? Can't figure out the best way to grow your business revenue? Book a Strategy Call and we'll get you back on track!