Asking for referrals is an inevitable part of growing a business. However, asking correctly is key to getting positive responses. When asking for referrals, you want to come across as sincere, not salesy. The goal is to build relationships that ultimately lead to business growth through word-of-mouth. Here are some tips on how to politely ask for referrals.
Why Referrals Matter
Referrals are one of the most valuable ways to grow a business. According to a Nielsen study, 92% of people trust recommendations from friends and family above all other forms of advertising. Essentially, a referral is a personal endorsement. It holds more weight than a cold sales call or a piece of marketing material. When you get a referral, that customer is vouching for you and putting their reputation on the line.
Referrals convert to sales at a much higher rate than other leads. One study by Influitive showed referred customers have a 37% higher retention rate. They also tend to have a 16% higher lifetime value. The study shows it is 50% easier to close a deal with a referred lead than with a non-referred lead. Ultimately, referrals are more likely to convert to sales and become long-term customers.
How to Ask for Referrals
Here are some tips on how to appropriately ask customers for referrals:
- Wait until you have an established relationship. Don’t ask someone you just met for a referral. Wait until they have experienced your products/services and had time to see your value.
- Time it appropriately. If a customer just signed a contract or made a purchase, they may be most excited about your offering and willing to refer in that moment.
- Be sincere and don’t use gimmicks. Explain that you appreciate their business and ask if they would be willing to connect you with others who may also benefit.
- Make it easy. Provide pre-written text or a link they can forward in one click to refer you.
- Offer an incentive. Consider giving a discount, gift card, or other perk for valuable referrals.
- Follow up and show gratitude. If you get a referral, always follow up to thank them for the opportunity.
- Focus on quality over quantity. A few strong referrals from brand advocates are worth more than many weak or unqualified leads.
- Ask for feedback. If someone seems hesitant to refer, ask for suggestions on how you can improve.
The most important thing is to make the referral request about them, not you. Explain how you appreciate their business and focus on providing even better service to their network. Ask for referrals only when appropriate and don’t pressure people if they seem apprehensive.
Referral Request Email Templates
Here are some email template examples you can adapt to politely request referrals from customers:
Template 1 – Appreciation Approach
Hi [name],
I wanted to reach out and thank you for being such a great customer over the past [time period]. We really appreciate your business and are so glad we’ve been able to help you [insert how you helped them].
I was hoping you might be willing to connect me with any friends, family members, or colleagues who you think could also benefit from our [products/services]. If you know anyone who may be interested, I’d be happy to provide more information and offer them special pricing for a referral from you.
Please let me know if there is anyone you would feel comfortable referring or anything additional I can do to exceed your expectations. We value your business and want to be sure we are providing the absolute best service possible.
Thanks again, and have a great day!
[Your name]
Template 2 – Quick Introduction
Hi [name],
I hope you are having a great week so far! I wanted to reach out for a quick introduction. Over the past [time period], you have been an amazing customer. Our entire team has loved working with you.
I’m hoping to grow our customer base this quarter and would greatly appreciate if you would be willing to connect me with any of your friends, colleagues, or family members who might also benefit from [your product/service].
Please let me know if you would be open to making an introduction or two. I’m happy to provide some pre-written text you can pass along or reach out to them directly – whatever is easiest for you!
Thanks so much for your time, and for being such a valued customer. Looking forward to hearing from you!
[Your name]
Template 3 – Offer Incentive
Hi [name],
I wanted to reach out with a special referral offer for you. We are so appreciative anytime you refer your friends and family to [business]. I know you’re busy, so I want to make it as easy as possible.
For any referrals you provide in [month], I will offer:
- [$ or % discount] off their first order
- [Gift card] to [location]
- [Free product/service]
Just send me their name and contact information or feel free to connect us directly. I’ll reach out, mention you referred them, and extended the [discount/incentive].
As always, please let me know if you need anything at all. We value your continued business and partnership.
Thank you!
[Your name]
Asking for Referrals In Person or On The Phone
You can also request referrals in person or over the phone using these tips:
- Wait for an appropriate opening in the conversation to broach the topic naturally.
- Remind them of the great service you provided and express your appreciation for their business.
- Say you are looking to get the word out and ask if they know anyone else who might benefit from working with you.
- Listen to see if they voluntarily offer any referrals first before directly asking “Would you be willing to…”
- Mention any referral perks or incentives you are offering.
- Tell them you’ll follow up with an email and referral link to make it simple for them.
- Thank them again before getting off the call, even if they don’t commit to referrals.
The polite phone script might sound like:
“Before we get off the call, I wanted to say again how much I’ve appreciated your business. You’ve been a great client to work with. As we are looking to grow our customer base, I was wondering if you might be open to connecting me with any friends, colleagues, or family you think could also benefit from our services? I’m happy to provide some pre-written text you can forward or reach out to them directly, whichever you prefer. And please let me know if there is anything additional I can ever do for you. Thanks again and have a great rest of your day!”
When to Follow Up
Here are some tips on when to follow up on a referral request:
- One week after request – Send a quick email or call to gently remind them of your request and offer to resend referral links or info.
- One month after request – If no referrals have been received, consider checking in again with a call or email. See if they need any additional info to refer or if they have any constructive feedback.
- Periodically on long sales cycles – Continue to email key clients every 1-2 months with referral requests, new services offered, company updates, and appreciation.
- After they provide a referral – Always follow up to thank them after you receive a referral, and keep them updated on the status if they referred a friend.
You don’t want to harass clients with frequent referral requests. But occasional, meaningful follow up is crucial to convert referrals. The key is adding value on these contacts, not just asking for referrals. Provide useful info, demonstrate you listened to feedback, and convey ongoing appreciation.
Referral Tracking
To maximize the value of referrals, it is important to have a system to track where they come from. Here are some tips to track referrals:
- Use a CRM to tag contact records with the referral source.
- Create separate lead source codes or values to tag referral leads.
- Note the referral source details in your lead intake forms.
- Train sales staff to ask about referrals on calls with prospects.
- Send referral emails from unique addresses or with campaign tags to track open rates.
- Use UTM campaign links to track referral traffic.
- Designate fields in your contacts database to store referral details.
- Leave notes on accounts indicating the referral source and relationship.
This allows you to report on the number of referrals received, conversion rates, and sales revenue driven by referrals from each source. You can then focus your referral requests on your best sources and offer incentives appropriately.
Common Referral Sources
Certain sources tend to provide some of the most valuable referrals for small businesses. Be sure to focus your referral requests on these potential brand advocates:
- Current customers – Especially loyal, long-term customers who have had an excellent experience.
- Vendors/partners – Other companies you work closely with may be happy to refer if you both share customers.
- Industry colleagues – Peers and business acquaintances who know your reputation and service level.
- Friends & family – People who know you personally and want to support your business.
- Influencers – Industry bloggers, media contacts, or leaders who can share your brand.
- Former customers – Even one-time purchasers may provide referrals if you left them satisfied.
Referral sources will vary greatly by industry. Take some time to map out your best potential sources and strategically cultivate those relationships through outstanding service and periodic referral requests.
Referral Requests on Social Media
Social platforms offer another opportunity to politely ask for referrals by leveraging your brand’s online networks. For example, you could post:
- A request for followers to tag friends who may be interested in your product or service
- A quick note asking people to share your page or posts if they enjoy your content
- A shareable image designed for people to easily refer you to their network
- A story sharing a positive customer experience and asking viewers to direct similar clients your way
When publishing referral requests on social media:
- Keep the tone light and sincere – no pushy sales language.
- Share it natively from your personal account to seem authentic.
- Make it easy for them take action with tags, links, and messaging.
- Use quality images or videos that represent your brand and offering.
- Post consistently, not just a single blast referral request.
- Monitor clicks and engage with sharers to drive word-of-mouth.
Adding occasional, polite calls for referrals on social platforms allows you to leverage your brand advocates online. Just take care not to overdo it and come across as only concerned about sales.
Encouraging Referrals Internally
Your own team can be one of your best resources for generating referrals. Some ways to get employees involved in the referral process:
- Educate staff on how referrals benefit the company and their value beyond other lead sources.
- Make it a team goal to gather referrals and track progress.
- Empower employees to offer referral perks or discounts within certain guidelines.
- Highlight referral wins and stories in team meetings or communications.
- Gamify referral gathering with non-cash prizes or recognition.
- Offer small financial incentives for valuable referrals.
Your staff likely has large networks via their personal social media and professional relationships. With proper training and motivation, they can become powerful referral engines.
Handling a Declined Referral Request
Even with the best approach, you will occasionally get declined when asking for a referral. Here is how to politely handle a “no”:
- Thank them for considering the request and do not get pushy.
- Ask if they would mind sharing why they are hesitant to refer, and actively listen.
- See if there are any changes you could make to earn a referral in the future.
- Mention you are always available if they reconsider or come across an ideal referral opportunity.
- Part politely on good terms so they remain a brand advocate.
- Consider sending an appreciation gift even without a referral.
- Keep providing great service and adding value when you interact.
You never want the referral request to harm the customer relationship. Be gracious if they decline and continue to nurture the relationship. With ongoing positive interactions, you may ultimately get referrals from initial decliners.
Conclusion
Referrals require finesse to get right. Avoiding pushy sales language and showing genuine appreciation is key. Carefully cultivate relationships with customers and referral sources. Then make specific, yet casual requests related to that individual’s needs and interests. Follow up promptly and continue adding value independent of referrals received. With this polite, focused approach you gain the rewards of word-of-mouth momentum.
