Which strategy is typically employed to generate referral leads?

Offering incentives for customers who refer others is a highly effective strategy for generating referral leads. This approach leverages existing customer satisfaction and loyalty to encourage them to share their positive experiences with potential new customers. By providing a tangible reward—such as discounts, gift cards, or exclusive products—businesses motivate their customers to actively promote their services or products to friends and family. This not only enhances customer engagement but also builds a network of trust since referrals from friends or family are often viewed as more credible than traditional advertising.

The other strategies, while they might have their merits in different contexts, do not focus on creating personal connections that lead to referrals. For instance, reducing prices may attract new customers through competitive pricing but does not incentivize existing customers to actively refer others. Sending promotional emails can increase visibility but lacks a direct connection to generating referrals. Additionally, providing detailed product manuals helps customers understand how to use a product effectively but does not inherently prompt them to refer new customers. Thus, offering incentives stands out as the most targeted and effective strategy to generate referral leads.