Dunvegan Blog

Customer Transferals versus Customer Referrals

 

As customer care and retention specialists, The Dunvegan Group is expected to maintain long term relationships with its own customers. And we do. In fact, we have served one of our very first customers since 1988!

 

Customer retention provides a high level of stability to any business. Organic growth can occur naturally as the relationship strengthens and new opportunities are identified. Non-organic growth through sales expansion requires acquisition of new customers.

 

We generally accept that referrals are a powerful source of new business; when existing customers offer their support through introductions and sponsorship the likelihood of success is much increased. In fact, the customer's willingness to provide a referral or recommendation is an indicator of the strength of the relationship.

 

During a recent discussion of the new business sources for The Dunvegan Group, we came to the realization that our own growth is more likely to be a result of “transferal” than referral. Transferal results when our key customer contacts, particularly those who are senior executives, move to a new company.

 

Transferal executives often uncover a need for Customer Care and Retention services and invite The Dunvegan Group into the new organization. While this does not guarantee we will win the business, it certainly provides a significant advantage when the executive can speak about the value we deliver, from their own personal experience.

 

Transferal creates an opportunity to continue working with a treasured colleague, in a new environment and the new company's Customer Care program will accelerate at a more rapid pace than is possible when all parties are new to the table.

 

Nurturing your customer relationships for both referrals and transferals makes good business sense!

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