The Value of Referrals

February 03, 2020

The Value of Referrals

By Annie Stroud

Why are referrals so vital for your business?

Referrals are a type of lead generation source that cost you almost nothing to acquire, and yet they bring valuable leads to your business. Everything is based on a customer's experience and their willingness to share with their like-minded peers.

Providing strong business value to your clients will make them reliant on you so they can focus their efforts away from IT and towards what is most important for them: delivering the same value to their own customers. For an MSP, the clients are the key to success, and it’s important to regularly invest in communicating your knowledge/progress to them. Doing all of this will turn your clients into your greatest advocates, leading to more new business. “The best marketing you can do is via word of mouth referrals. Trying to build up clients who can refer you on to like-minded companies is great for business,” explained Chris Tate, Former MSP.

Referrals are essential to strong business growth. If you’re already supporting similar market verticals, it will be easy for you to support other clients in the same market, eventually creating more business and perhaps supporting even larger clients! “Referral programs are becoming more common within the MSP space,” explained Tate. “Offering cash or prize incentives, including money off their next invoice, is a tried and tested way to entice clients to get the word out to other SMBs. Some MSPs also offer to make charitable donations if one client refers them to a prospective,” said Tate.

Whatever you decide to do, it’s important to remember that your clients are the ones using your solutions. If they’re happy with the service, they will likely be willing to tell people about it.

To find out more top tips and best practices on how to grow and scale your business, why not download our latest eBook, How to be an MSP: 7 Steps to Success.

How to be an MSP: 7 Steps to Success

We cover the seven strategies for breaking up with break-fix and moving on up towards monthly recurring revenue, or MRR, as a managed service provider.

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