Characteristics of Firms Leveraging Referrals

Firms that are successful in leveraging referrals have distinct characteristics. First, they sell strategic services to senior people, as referrals from senior individuals hold more weight. Second, their clients talk to each other easily, providing an organic environment for word-of-mouth referrals. Third, having a personal component to the service or value increases the likelihood of referrals, as clients feel a stronger connection. Finally, firms that have a disciplined approach to referrals and follow a three-step framework (do good work, say please, say thank you) are more likely to generate consistent referrals.