Dictionary meaning of referral is – an act of referring someone or something for consultation, review, or further action.
– the directing of a patient to a medical specialist by a GP.
– a person whose case has been referred to a specialist doctor or a professional body.
– Referrals is not a new concept and we all know it works with improved relationships, word of mouth etc..
If we look closer into the minds of the customer and see what ticks is the cost-benefit, trust and potential guarantee of improved relationship.
Online sales and offline sales referrals and can be depicted from the diagram below:
Its clear that there is a demand for better service and typically buyer is in need for not only just an advise but also advise that has some credibility hence customer is waiting for the right idea that works! In a offline model its a lot of communications through phone before this is possible.
An online referral comes as a perfect fit for much needed requirement. Even then its not guaranteed that a referral always works but it improves the chances. At the least if a customer is not able to make a decision – the very indecision typically leads to asking or seeking for an advise – and then with correct matched-advise results in a good referral.
To conclude an online application when referred by someone for a requirement can be known much easily and hence can enable better business results. Although it necessary for customer to expresses its requirement online to the seller.