The Importance of Gift Giving in Your Referral Network

Published on November 13, 2023

Gifting in your referral network of clients keeps the connection solid and human. Here’s why that’s important.

Fostering Relationships

Maybe you’re thinking you don’t need to send referral gifts at all. Your clients love you. Some of them have already sent you referrals. However, incentives exist for a reason. People really do refer more when they get a reward or incentive for doing so. Referral gifts are a marketing cost. Maintaining client relationships is key. People trust referrals from family or friends, and they become loyal customers and advocates, leading to even more referrals.

More Than Business

As humans we also have a need for significance, to be important and to be acknowledged. For example, when someone buys a home, it is a major milestone in their life, and they crave the opportunity to be acknowledged and celebrated. When their realtor gives them a physical gift for their new home, they are really giving them acknowledgment. It’s also celebration, excitement, joy and a sense of wonder. The best professionals realize that their client relationships really benefit when they acknowledge and offer significance to clients when it is least expected. The conclusion of a major deal together, such as closing a house or selling a business warrants a gift and celebration. It’s the professionals that remember clients during the holidays, on their birthdays, and during periodic check-ins with them, that really wow clients. This very positive surprise has a strong hold in their mind for a longer period. So, when they give unexpected gifts, professionals are more likely to stay at the top of their clients’ minds and referral list.

Sales Boost

It’s also been proven that a strong referral program and gift can boost customer retention, and sales.  Your customers will feel valued and excited about your brand, which will keep them coming back for more. Another bonus is that these gifts can help spread the word about your business by starting conversations. Smart sales teams know that learning how to get referrals from existing customers is a highly effective way to boost revenue and sales. In fact, sales referrals have been shown to have a 70% higher conversion rate than leads from other sources and close 69% more quickly.

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Andrew Lambert

Meet Andrew Lambert

My goal with Lambert Consulting is to continue to bring community, business, and education together. You must have all three in order to be successful. My experiences have allowed me to be more in tune with my clients’ needs and how to fulfill them. Hard work, honesty, and respect is what I give to each of my clients.