How are Customer Leads and Referrals different?
Last updated 9 months ago
Getting good Leads or Referrals will certainly help you grow your business. However, it's good to know the difference between too. Most people who get leads from business relationships, think of them as referrals. This is not entirely true.
Understanding the difference between a Lead and a Referral will help you understand how to handle them to get the business from them. Let’s look at the difference.
Understanding the difference between a Lead and a Referral will help you understand how to handle them to get the business from them. Let’s look at the difference.
A Lead is when someone gives you the name of a company or person to call because they may need your product or service. An example from a business friend who knows your a plumber would be, “Hey, to let you know my friend Terry has a serious water leak at his house, you should call him.”
That's a Lead and they good as the person who provided you the lead is trying to help you. This is the first step in getting real referrals from someone.
That's a Lead and they good as the person who provided you the lead is trying to help you. This is the first step in getting real referrals from someone.
However, a Referral is when someone gives you the name of someone who they have introduced personally to your business. They have spoke with them either in person, texting or emailing them. This is important, since a Referral is a lead that comes with a Stamp of Approval and Trust!
A Referral example of friend helping out their friend who is a plumber would be, “Hey, I told Terry, a friend of mine with a serious water leak at his house about you, and what a great job you did on my home plumbing. I told him to give you a call, and that I could have you call him. He was OK with that too!”
See the difference? Exactly the same as a Lead, but the Referral knows to call you and that you may call them, and most importantly they know you can be trusted because their friend has given you the Stamp of Approval and Trust!
A Referral example of friend helping out their friend who is a plumber would be, “Hey, I told Terry, a friend of mine with a serious water leak at his house about you, and what a great job you did on my home plumbing. I told him to give you a call, and that I could have you call him. He was OK with that too!”
See the difference? Exactly the same as a Lead, but the Referral knows to call you and that you may call them, and most importantly they know you can be trusted because their friend has given you the Stamp of Approval and Trust!
Now, even though the new referral knows you as a 3rd party, that's still more powerful than a Lead because the Referral they got about you comes from their friend that they know and trust. So, when they call you, or you call them, they know you can be trusted.
Customers referred to a business spend on average 200% more than ones who are not referred.
So, you want to get as many Trusted Referrals as you possible can, because they are backed by trust!
Customers referred to a business spend on average 200% more than ones who are not referred.
So, you want to get as many Trusted Referrals as you possible can, because they are backed by trust!