Loyal Customers Don’t Give Referrals

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When looking for referrals, who do you approach first, brand new or long term customers who have enjoyed using your product or service for many years? In this Vlog, Grant explains it’s not who you think…

We’re often told there’s a whole customer journey.

We nurture a prospect, they become a customer, then we delight them and satisfy them and eventually as they become loyal, they become an advocate.

But that’s simply not true.

Imagine this scenario; a new curry house opens quite near where you live and you and your partner decide to go and visit one night. You turn up to the restaurant and are absolutely delighted with the wonderful meal and experience that you have. Over the next few days you tell every friend you have what a wonderful curry experience you had, and have they tried that new restaurant?

But what happens three years on when you’ve been going to that restaurant regularly, do you still tell people? Not really. You love the restaurant. You’re a loyal customer. You go several times a month and have done for three years, but now it’s become expected and although you enjoy the experience, you’re fed up of telling anyone about it.

You’re a loyal customer, but you no longer give any referrals.

The fact is that loyal customers are often complacent. It doesn’t mean they’re dissatisfied, but they’re just used to the service that they get.
Whereas; new customers, when they’ve just used your service and have experienced it for the first or second time, it’s still fresh and excited and they are actually the best customers to ask for testimonials and the best customers in order to get referrals.

I’m not suggesting that loyal customers will never give you a referral and I’m not suggesting that you can’t ask them for them. I’m just saying that often, the best referrals will come from those new customers who are really excited by your products or services because it’s a new experience for them. That’s a ripe place to mine for referrals and one which often companies overlook because they want to go to their local advocates.

And now I’ve got that off my chest, I’m off for a curry. I would tell you where I’m going, but quite honestly, I’ve been using them for years.

There may be small changes to the spoken word in this transcript in order to facilitate the readability of the written English

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  1. Really interesting video Grant. Highlights the importance of getting referrals early on.

  2. Grant, when I read your headline I was half expecting you to take a slightly different angle. This was refreshing and informative. In my experience, the more loyal and long-standing clients tend not to give referrals because they want to jealously guard their access to you!

    1. Author

      Thanks David, I am glad that you enjoyed the video. It is interesting. People are often surprised to know their best source of referrals.

  3. Grant I think the key comment is ” But now it’s become expected “. We set our delivery right on time achievement as best in class. BUT the rare late shipment became what long term loyal customers would remember and talk about. Setting the bar high becomes the norm.

    1. Author

      Absolutely Paul, I agree. You can be brilliant, and, at first, customers maybe astounded at how good you are. However, as you state, “it becomes the norm”. Customers come to expect what, initially, they found amazing.

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