Referrals are the easiest way for a business to grow and sell more products to current clients or increase the average order value from current clients.
The third part of the equation in growing your business is to attract new clients.
Having a system that brings to your business a steady flow of new clients is paramount for any business. One way to achieve this is by having a detailed lead generation strategy where you provide quality educational information to help your clients solve their problems, fulfill their desires or meet their needs.
But the easiest way to attract new clients is through referral marketing. In my experience, most business owners hope that people will refer their business, their service or their clients to new prospective customers.
But in business, the best way to get things done is to have a system.
Like any aspect of your business, your referral marketing system needs to be detailed and designed so that it just doesn’t happen by chance but is actually driven by you and your business and your employees.
Three steps for a successful referral process
1 Ask for Referrals
Yes, are you asking for referrals?
Are your staff encouraged to ask your clients for referrals?
You need to ask referrals because without asking how will people know that you want to have extra business. In most cases, your clients are more occupied with their own business and problems and issues. So if you don’t ask they never going to respond.
Generally, these other barriers for business owners are asking for referrals
- You are uncomfortable about asking for referrals.
A number of business owners think they will be offending their client if they ask for a referral or worse be seen to be begging for new business. It is like they are asking for more please more or help me I’m struggling so can you recommend someone to our business.
If you believe that you offer a superior product and service and that more people should utilize you and your business because of what you do offer and what you do for them then it is your duty to ask.
Think about how you feel when you send someone new business or a new business opportunity. You feel good, you feel good about yourself and you feel good that you can help someone.
So your customers or clients if they truly value your service and what you provide should have no problems in sending you referrals because they know that you will be looking after that person that they send.
2. They don’t know how to ask.
The simplest way is to ask your clients customers for an introduction.
Be specific about who you want to be introduced, if you can name names then that is really good.
3. You don’t know when to ask
Timing is everything.
Should you ask at the moment when the sale is concluded, they sign a contract, or at the end of the project or somewhere in between.
A good point to ask is when a client may thank you for your work.
If a client or customer says to you thank you so much for helping me you are taking care of this for me why not consider asking this
“You’re most welcome I’m glad you feel good about our work together. Tell me do know just one friend or colleague who might need my help too?”
If a customer says yes then you just respond “I’d love to help XXX. Would you please introduce us.”
When someone signs a contract is a good point because it is in their planning to move ahead and it helps reinforce a buying decision.
Whenever a client praises you then this again is another good point to ask.
Just be alert and aware that you need to ask for referrals and over time you will learn by practicing and asking when the best times occur.
4. You don’t have a system for asking for referrals.
You have to create a system to get referrals, to track referrals and to reward clients who refer you and follow-up with people who are referred to you.
2 Be specific when you ask for introductions
Think about your buyer personas, your target market, then these are the people that you want to be asking for in regards to referrals.
You must make it easy for clients to refer you. Do all the work for them. Then use them to do the one thing you really need and that is introduce you.
One of the best things to do was have a top 10 list of people, companies or professions that you want to meet.
Have this list of people on a one page that include your contact information and a sentence or two about how to introduce you.
When you meet with a client or colleague and you’re asking for introductions you can simply say “Can I share with you a list of people I am looking to get introduced to”.
Then give them a copy of your list.
Another nice thing to do is ask your client or colleague if they have a top 10 that you can use to introduce them to people that they are looking to build their business with.
Another technique is to meet one of your closest customers, clients, supporters for either coffee or lunch and let them know that you want to refer business back and forth..
Then asked them to bring their client and prospects list and you take yours and you check each other’s list to see who you would like to be introduced to. Both parties agree then to make the introductions over the next week.
This way you are helping not only your own business but your closest ally or customer grow their business..
3 Follow-up Quickly
Commit to following up quickly when you have a referral.
It shows respect to the person who gave you the referral.
Initially make the phone call this is much better than sending an email.
It is more personal and your goal is to build a relationship.
Remember to send a thank you note to the person who referred you..
If you end up doing business then send a gift to the person who referred you. Sending something simple will go a long way towards getting more referrals from the person.
Referral marketing does not have to be a long detailed process.
It simply can be just a quick system that is top of mind:
Being specific about the clients you want to attract to your business and how you can help them
Letting people know that you are looking to grow your business by serving more people with your products and services.
It is important that you begin your referral system and then build on it each month.
