February 24, 2003
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Nine no-fail ways to boost referrals
for your business |
| By Maribeth Kuzmeski |
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Why referrals should be the foundation for all your
selling efforts - especially in our challenging economy |
No doubt about it, we're all navigating some hard economic times, and companies everywhere are in a quandary. Increasing your client base is more important than ever, but you just can't spend a lot of money on growing your business in challenging economic times because you're too busy trying to stay afloat.
An inexpensive and very effective solution might be in your own back yard, though, with referrals from clients and even prospects providing the best leads you can ever hope to receive, for next to nothing.
If you provide valuable, worthwhile products and services to your clients, they will want to share you with others. That's simply human nature. Sometimes they need a little nudge, though, so whatever your business is, you should have a system in place for promoting positive word of mouth.
In times of economic challenge, you can be doubly sure that cold calls are not your best option. You need to use all the leverage at your disposal to make the critical task of generating sales leads easier and more cost-effective - and a good referral system is worth its weight in gold.
While most business owners inherently understand the benefits of having clients refer friends, family and colleagues; many companies simply fail to make it a priority. Perhaps they feel that asking is unprofessional, or they're afraid of the possibility of rejection. Or, most likely, they've just never figured out a way to build referral requests into their everyday operations.
Below are nine extraordinary strategies for referral-boosting:
1. Seek out a systems-based approach
Too many companies view referrals as something extra, a bone occasionally tossed by a client. Rather, everything a company does should be geared to asking for and following up on referrals. If a company has a system in place for pursuing referrals, its staff will surely use it. You won't have wonder how to thank a client or employee for a referral, you'll have a package on hand to instantly drop in the mail. It will be as automatic as brushing your teeth.
2. Give clients more than service - give them an experience
In order to get referrals, you must become a memorable, noteworthy, one-of-a-kind business. Do whatever it takes. Developing a memory hook or tagline that cleverly conveys your business personality is just the beginning. In an experience economy, businesses must give clients more than just stellar service.
For instance, a financial services company claims it helps its customers "get to the top of the mountain." From the mountain top you can see the world-so this company has turned each office and conference room into a different "country." One room has a huge mural of Athens on the wall, another represents Paris, and so on. The company reports that people bring their friends by to see the office, even without an appointment. Can you imagine a better way to attract new business?
3. Find your "natural niche" and never let it go
A company cannot be all things to all people and shouldn't try. Take into account your expertise, areas of interest and your niche market, determine what kind of "specialist" you want to be, and then cultivate that niche. It should feel natural, as if your company was born to play this role. For example:
- Target the top two publications in your industry and write dynamite articles for them.
- Become a prominent and visible member of the best trade association in your industry.
- Create educational opportunities such as seminars and brown bag lunches.
- Use testimonials and success stories in your particular niche; they act like referrals.
4. Keep in touch to keep 'em happy
Don't wait for clients to call you - initiate contact with them on a regular basis! In February, for example, you might send Valentine's Cards; in June, send some helpful travel tips; in November, share your favorite holiday recipes-and ask for theirs. Furthermore, you should contact these special clients several times a year just to make sure they are happy with your service.
Keeping in touch is more than a series of mailing; it's a way of keeping clients in the loop, and will also keep you in their loop. You want to constantly be available to help your clients solve problems before they become problem, and to encourage them to tell you if they're not satisfied with something. You don't just forge a strong relationship with your clients; you actually become part of their business.
5. Become a "list lord"
A list of association, industry, department or club members can open the door to referrals. For example, upon meeting someone from a local country club, ask, "I was wondering if you know anyone in this club who may be interested in the services I offer?"
Once you have a few referrals, you can contact these people and say, "Hello, I got your name from Bill Smith, another member of the Watertown Country Club, and he said you may be interested in the services I offer." It's a great way of getting more referrals without being demanding, and it because people want to show that they have influence in the groups to which they belong.
6. Make your office an "RR crossing"
To help create a referral mindset, put a sign in your office that says "RR," which stands for "remember referrals." It may also inspire visitors to ask what it means, which creates the perfect opening for you to explain that referrals are the heart of your business and you would appreciate their help. Also, include the topic of referrals on the agenda of each client or prospect meeting, and ask a colleague or staff person to help you establish this new habit.
7. Persuade your clients with a club
A referral "club" creates a sense of belonging and encourages its members to provide referrals. The club might sponsor a referral appreciation dinner for club members and their referrals, or partner with a local business to offer discounts at, for instance, a flower shop or restaurant. The club might send members a special mailing or newsletter. Whatever the features of the club, be sure it enhances your company image and promotes ongoing dialogue with your client.
8. Say it with flowers, or more creative rewards
Thanking clients who give referrals encourages even more referrals. A simple note is nice, and flowers and gift baskets are also time-tested winners. But also consider being a bit more innovative, such as with:
• a book relevant to the referrer's interests;
• homemade cookies or other treats;
• tickets to a sporting event, the theater, or the movies;
• a guest pass to a spa, or a ticket for a free massage; or
• a free car wash or a coupon for dry-cleaning.
Alternately, you could meet with the referring client for free hour of consultation, or you could donate to his or her favorite charity. You might even offer to sponsor his child's Little League team. Be creative - just be sure you go above and beyond the call of duty to thank them for providing such a valuable and generous service to your business.
9. Just do it-and do it every day
The best way to get comfortable with asking for referrals is to make it part of your everyday business dialogue. Ask your clients what they liked about the work you've done together, and then inquire about anyone they know who might also benefit from your services.
If you simply can't bring yourself to ask outright for a referral, there is another way. Consider a "referral request package" -a nice cover letter and a form for clients to list friends and business associates who might be interested in your services. Many people find that asking for referrals in writing is much more psychologically comfortable than asking in person.
One cannot overstate the importance of asking for referrals. These leads are cost-efficient and often easy to close, and usually turn out to be loyal customers. And consider this: most of your competitors are not asking their clients for referrals. In fact, 90 percent of the business owners say they ask for referrals only occasionally. Being among the 10 percent who does can make all the difference in your business.
Maribeth Kuzmeski,
president and founder of Red Zone Marketing in Libertyville, Ill.,
has done extensive research into marketing strategies, and speaks
across the United States on topics relating to successful marketing.
She may be reached at
mk@redzonemarketing.com,
847.367.4066 or via her web site at www.redzonemarketing.com.
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