7 Ways to Build Your Business through Referrals
Without doubt one of the most rewarding and cost effective ways to generate leads for your business is through a referrals program. When done correctly it has multiple advantages for you and your business.
- It saves you time
- It saves you money
- It has a high conversion rate
- It ensures you are keeping your existing client base happy
- You generate a higher number of grade A customers.
1. Set A Target: In business, measure the results to improve performance. Set a clear goal with a time line. Example, 10% increase in referral business over the next 10 weeks.
2. Timing: Conventional sales wisdom claims the best time to ask for the referral is immediately after the close. This tactic is far too aggressive. Give your clients time to experience your service or product before asking for a referral. Ask for the referral at close only if your client is already delighted with your business.
3. Top 20: Not all customers are referral candidates. Find the top 20% that are ecstatic about your business and ask them for referrals. Make sure their network is the type of client you want.
4. Give and You’ll Receive: Give your clients extra service and follow-up support before asking for referrals. When you give willingly to your customers, they will return the favour.
5. Type of Customer: Inform your referring clients of the type of customers you can help. Provide a clear picture of the customer demographics will help your referral marketing.
6. Rewards Program: Provide special rewards to your referring customers on a regular basis. If a customer provides you with 5 sales, offer them something special, e.g. discounts.
7. Thank-You: You need to establish trust to build referrals. Create a basic thank you letter that can be personalized and sent to each referral you receive. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door.
These tips are simple but when executed on a regular basis they can drive your referral business and build sales revenue. Start today and watch your referrals grow.