February 22, 2024

What Does Referral Source Mean?

In the world of client acquisition, referrals are a great way to get your foot in the door. It’s one of the fastest ways to bring in new business and it’s also the best way to find a fit for your team. But what does “referral source” really mean? There are four types of referral sources: clients, centers of influence (COIs), friends and family, and strangers.

The first step is to create a list of your current clients that are likely to refer you. You’ll want to be sure to include past clients too – they may not have the same level of excitement about working with you, but they could be a good source of referrals in the future. You’ll also want to include people who aren’t your clients but may have the potential to become a client – for example, someone you met at a networking event or online that found out about you through a friend.

Next, you’ll need to determine what types of referrals you receive from each type of referral source. For example, if you’re receiving a lot of referrals from COIs but not from clients, this is an indicator that it’s time to focus on your marketing to COIs.

Lastly, you’ll want to look at the number of referrals you receive from each type of source and compare that with your goal for how many new clients you need this year. If you need 50 new clients and you have two dozen referral sources that each send you one or two referrals a year, this will help you to reach your goal a whole lot easier than if everyone you speak to sends you a new lead every week.

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