Ignoring the power of referrals

I contacted a private local broadband distributor for a new connection to our home. A friend of mine had referred this guy and I called him.

I had been using slow internet for so long now that I was ready to spend some money over this local dealer. Usually, I would have been reluctant from getting a connection because such local providers are notorious for bad service.

But a word from my friend wiped out my inhibitions and I called them and they checked our location and hopefully we will get the connection tomorrow.

But I was intrigued by something my friend said to him on call. He asked whether he can get some referral discount as he gave them a new customer but they sadly denied. But that is exactly what they should not do.

If they offered some discount or extra month or something similar to already existing providers if they referred their friends and contacts, they would surely see a rise in their sales.

I have no idea why they ignore this but I have never seen anyone implement such a method or expansion here locally. May be they cannot afford it? I don’t know their margin numbers.