Conversion rate optimization, PPC, visual storytelling. These are all examples of cutting-edge digital marketing techniques that are highly effective.
But no matter what the latest trend is, there’s one strategy that still stands tall — word-of-mouth. The simple act of a previous client telling someone else about the positive experience they had with your law firm can sending leads coming in like nothing else.
Here are five referral statistics that prove the power of word-of-mouth and why your law firm should focus heavily on earning referrals.
1) When referred by a friend, people are 4X more likely to make a purchase.”
It’s clear that people are far more comfortable doing business with a law firm after someone they know personally has recommended it. And this just boils down to trust.
With so many options available and everyone making big promises, it’s hard to know who’s legitimate. Referrals are a simple yet highly effective way to get prospects on board and feel good about the idea of your law firm handling their case.
2) 92% of respondents trusted referrals from people they knew.
This piggybacks off point number one. Gaining trust is so difficult to do these days. Any strategy you can implement to quickly increase trust is going to be highly beneficial.
This statistic suggests that referrals are still one of the best ways to build trust pound for pound.
3) “You can expect at least 16 percent more in profits from referred customers.”
Referrals tend to be well qualified clients. There’s likely a strong need for expert legal guidance, which translates into a high interest level. In turn, these clients are often more lucrative than non-referrals.
4) “The Lifetime Value for a new referral customer is 16 percent higher than non-referrals.”
Research has found a correlation between referrals and loyalty. “Customers are indeed more likely to become loyal to your brand and spend money on your product when referred,” writes referral marketing platform Extole.
This means they’re more likely to turn to you again for future legal advice. And in some cases, this can be a long-term or even life long relationship.
5) “Companies with formalized referral programs experienced 86 percent more revenue growth over the past two years when compared to the rest.”
Having former clients casually suggest your law firm to friends and family members is great and is certainly advantageous to your growth. But studies have found that having a formalized referral program is like throwing gasoline on the fire of progress.
This is what really generates momentum and helps make the absolute most out of referrals. So this is definitely something you’ll want to consider. Doing so helps you establish an organized program and replicate positive results.
Check out this guide from HubSpot to learn the basics of getting a referral program set up.
Sometimes, the oldest, most tried-and-true techniques are still some of the best. These referral statistics show that generating referrals can help your law firm on many levels. Not only can it keep quality leads pouring in, your clients should have a greater Lifetime Value as well.