- Author: Vinay Murthy, Known Circle - When customers refer your product or service to their friends, what is this really about? They have put their credibility on the line, they’ve made an effort to help save their friends time and possibly money, and they are helping someone else make a better choice. All this for you or for the small reward that you may send their way? Not really. Customers rarely make referrals to help a business. They make them because they want to bring value to their friends and be useful to their social connections. So, if your referral strategy is centered on simply going around asking customers for referrals, it’s time to rethink things. You may win a few leads or even a few customers, but these tactics rarely scale and you’re essentially missing the point. Customers make referrals to help their friends, not you.
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