Drilling for Diamonds

Lots of firms now measure their customer’s willingness to make referrals.

Loyalty Guru Frederick Reichheld argues the one number you need to grow is the number of customers who answer Yes! to this question:

“Would you recommend us to a colleague or friend?”

Marketers however also need to know other key information about referrals.

1. If a customer intends to refer you to a friend or colleague do they actually follow up and recommend you to a prospect?

2. Do these referred prospects actually become customers?

3. Even if the prospect becomes a customer, are they profitable?

These three questions allow you to measure the value of a referral.

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