Referrals and customer service

Perhaps, but not necessarily. Providing good customer service is a good policy and one that’s vital to the health of your business, but it’s not at the core of building a referral-based business.

People expect good customer service. That means for most of your customers, you're going to have to remind them to provide referrals. When somoene pays your business a compliment, tell them you hope they will tell their friends about their experience. That's asking for a referral, which is a critical element of your referral marketing strategy beyond good service.