The role referrals play in company growth

Ninety percent of Americans own a smartphone, giving them immediate access to immense knowledge. We can browse the web, scroll social media, listen to podcasts, watch TV – all while being served ads that could influence purchase decisions greatly. 

Despite the rise of technology and all the ads that come along with it, there’s one promotional tool that reigns supreme at Stratos. What is it? Word-of-mouth referrals. And research tells us others feel the same about this old-school approach. In fact, Nielsen reported 92% of consumers trust loved ones’ recommendations more than all forms of advertising. Furthermore, a second study conducted by McKinsey & Co., discovered word of mouth holds the most weight for consumers in up to half of their purchasing decisions. So, how does this relate to Stratos and potentially your business? Read on.

Employment referrals
Valued referrals come to us in two forms. Let’s start with internal referrals – existing service partners referring others to apply for employment. Here at Stratos, our service partners are the heart and soul of the organization. We invest in their personal and professional lives, helping them grow, overcome challenges and identify resources that will improve their overall wellbeing. Last year, it came to our attention that these efforts created an unintentional benefit. In 2022, 45% of service partners who worked more than 90 days were referred to us by an existing team member. This tells us our service partners are happy enough with their job to encourage others to submit an application. What a blessing.

Customer referrals
Providing exceptional service day in and day out to customers is vitally important to us. During weekly management meetings, Stratos CEO Stacy McCall asks leadership if they have a customer they would not want our sales team to put on its referral list. If, unfortunately, there is a hesitation, then the team knows immediate action is needed to right the ship and turn the tide. 

We create trust with customers by creating open communication channels, anticipating needs and more. One benefit of the strong partnerships we forge is when a customer refers Stratos to peers. Like with our service partners, this action reassures us that the customer is satisfied. Mission accomplished.

While we don’t have hard statistics for the close rate of customer referrals, Stratos Sales Manager Chris Vitullo is confident it’s close to 100%. In fact, he couldn’t recall a customer referral introduction that had not been successful.

The parallel between employment referrals and customer referrals is our magic sauce. When the two are flourishing, we know we’re doing a great job throughout the organization. How can you maximize referrals inside and outside your business?