How to Get More Referrals in Your Local Business

How to Boost Your Local Business Referrals

It's a great feeling to have someone call your business, interested in signing up or purchasing because they've heard such great things about you from their friends.  

Setting up a referral program to consistently encourage these calls can provide a big boost to your bottom line.  

But what's the best way to structure a referral program? Do you need to provide big incentives to get moms to tell their friends and family about your business? 

We asked moms across the country what motivates them most when it comes to spreading the word about local businesses to their friends and family.

WHAT MOTIVATES MOMS TO REFER?

🏆 The number one motivator of referrals when it comes to local businesses?  It turns out that 86% of moms say their own experiences with the business.  

Nothing too surprising there.  If a mom loves the products, services, and experience she has with you, of course, she'll be a lot more likely to tell her friends. 

🥈 The next big motivator for moms?  69% said helping a friend or family member solve a need.

Moms love to help others and if they can make a friend's life easier by giving them the inside scoop on the best orthodontist or music lessons in town, they're happy to do it.  

🤝 Continuing on the generosity streak, the third most popular reason moms refer a local business?  Because they want to help your business.  

That's right. 66% of moms want to help you thrive and serve more people in the community and feel that sharing information about your business is a way to do their part. 

➡️ Other motivators for moms? 23% had a desire to be seen as an expert or trusted resource in their community.  

💰 Interestingly only 14% of moms said that free products or services were a big motivator in referring local businesses and only 6% of moms cited cash incentives.

WHAT DOES THIS MEAN FOR YOUR REFERRAL STRATEGY?

First, make sure your customer service is top-notch.  Underpromise and overdeliver on everything you do to ensure you create a tribe of loyal fans, ready to tell the world about your business.

If you set up a formal referral program, make sure it plays into moms' desires to help their friends and to help your business succeed.  

Keep the focus on helping others as opposed to "getting free stuff" if you want to tap into moms' natural altruistic tendencies.  

Using free products or services can still be a powerful tool when it comes to referrals, just make sure that both the referrer and the referee are getting the benefits.  

Moms will respond a lot better if both they AND their friend get a free class or discount from the referral. 

Remember, moms are generous and while they'll happily take an incentive, that's not the primary driver of their referral motivations and definitely don't want to be seen as profiting off of their friends and family just for referring them.

When you keep your eyes on the underlying reasons moms share your business with friends, your referral strategy will be set up for success.