Referrals are the single fastest and easiest way for any business owner to build deep relationships, earn more money, and enjoy the freedom they desire. But the problem is getting those referrals. How do you ensure your business becomes one of those lucky (and seemingly rare) companies that actually do attract a stream of never-ending referrals? Fortunately, several expert business coaches can provide some crucial insights…
Business coach Michael Beck of ClientMonkey.com says it’s important to put energy into building a referral programme.
“It’s worth taking the time because prospects who are referred to us are easier to close, make their buying decision faster, are more profitable because there’s no cost in acquiring them and they spend/invest more with us, and they’re more loyal – they tend to stay with us longer and stay through most of the ups and downs.”
Daryl Logullo, the Founder of Marketing-Referral-Tools.com and another expert business coach, says too many companies fall down at this first step: they take a haphazard approach to referrals and therefore miss out big time.
He says there are six powerful strategies that you can use to create a more consistent flow of referrals. These are strategies that all business coaches would recommend.
1. Ensure your colleagues, clients and customers know all your products and services
People talk most about your work when they really understand it. But, unfortunately, the majority of clients have experienced the benefit of only a few of our skills.
Referrals come faster when clients recognise the extent to which you can improve their lives – and have already done so, says Logullo. So they must be able to understand all your services. They must be able to explain to others what you do.
Focus on educating them about all areas of your practice, ideally by giving them the direct experience of benefiting from all your expertise.
“It amazes me how many people the average professional has in his or her active business network, yet how many of those contacts don’t understand the professional’s entire product or service offerings? Don’t believe me? All you need to do is show a client or colleague a new product or service offering, and watch for their typical response, ‘I never knew you did that as well!’”
He gives the example of a public relations company whose clients are unaware that it not only produces press releases but is also heavily involved in the distribution of press releases, which includes assembling the media list, planning the email and phone pitch protocol, sending the releases, following up with each pitch, and sending supporting materials to editors or producers. If the clients knew, they might refer other companies who need help building media lists, for example.
2. Dedicate time at the end of each prospect or client meeting to “brainstorm” referrals
“While most professionals are experts at holding meetings with clients or prospects, many are utter disappointments at holding a meeting with an agenda – let alone one that allots time for the discussion of referrals. Why?
“Probably because most professionals are uncomfortable bringing up the subject of referrals with their clients or prospects for fear of damaging the relationship.
“Business coaches often meet professionals who are uncomfortable bringing up the subject of referrals with their clients or prospects for fear of damaging the relationship.”
“They consider it taboo to discuss their desire to grow their business by referral – especially with existing clients. When business coaches raise the issue, the common reaction is, ‘I can’t discuss or ask for referrals. It will make me look cheap or sales-y.’
“That’s simply wrong. Overcome it by learning how to segue into this topic by discussing your visions of growth. When business coaches work with professionals to improving their referrals, I emphasise that an attitude of conveyance of growth is absolutely essential. This attitude keeps you from alienating clients; it means that when you talk referrals, most clients are thrilled that you thought so highly of them that you’re sharing your growth plans and requesting their help. Try it and you’ll be astounded at the reaction. If you’re still gun-shy, you can always plant a ‘quiet seed’ that will blossom over time by beginning with a referral letter.”
3. Earn referrals by personal introductions — never ask for or accept a person’s name or number on a business card
A name on a business card is not a referral – it’s a cold introduction. The next time a colleague hands you someone’s business card and suggests you call because “they’ll be interested in what you do”, suggest they arrange a personal meeting for you. “Personal introductions will always trump cold introductions, and you should strive for this level of commitment from others who express an interest in you,” advises Logullo. “That’s not being conceited. It’s being respectful.”
4. Seek value “reinforcement statements” from current clients and associates
Don’t assume just because people work with you that they value your work. They may not feel comfortable being candid about your performance. The only way to be sure what they really think is to ask what they think and how you can deliver exactly what they want.
5. Continue to build a relationship with clients, customers, and colleagues by anticipating needs
If you want to create top-of-the-mind awareness in your customers’ minds, provide value, and do it fast, says Logullo. “A common saying amongst business coaches is: ‘Referrals love speed’. Referrals and introductions happen more consistently with the more action you take – and the faster you take that action. Actively share information that the other person finds useful to his/her own life. Provide value to others in their over-hectic, frantic, and stressed world. Doing so creates top-of-mind-awareness.
“For example, you may be able to offer a suggestion that enables someone to generate more revenue, or share a current competitor’s marketing approach that you have noticed. The idea is to become a valued, welcomed partner and share information that helps clients, customers, and colleagues to improve their personal or business lives.”
6. Reward referral-generating behaviour
As with any behaviour you want to reinforce, pay attention to and reward referral-generating behaviour.
“It amazes me (and other business coaches) how many professionals don’t recognise and reward referral-generating behaviour – whether it comes from their clients or even their office staff,” says Logullo.
“Much as you reward a schoolchild who brings home a good report, you must reward any person who sends business your way. Start by focusing on your clients. Make them all aware that there’s something in it for them – a gift, free product, extra resource — when they refer people to you. And by all means follow through and reward them.
“Reward the referral behaviour! Always.”
“But be careful: don’t fall into the trap of rewarding the client only when their referral does business with you, or when you close the sale. Reward them just for giving you a name. This isn’t some cheap, gimmicky sales approach. It’s an honest appreciation and recognition for those people who have helped you. They’ve taken time from their schedules to do you a favour – refer someone to you. Reward that behaviour. Even if the referral doesn’t pan out or become a client, even if they turn out to be the worst prospect you’ve ever seen in your life, reward the referral behaviour! Always. People remember rewards. They enjoy them. And you’ll feel good about it yourself.”
Business coaches Hank Stroll and Meryl K. Evans say referrals don’t always happen just by accident. They are the product of a great customer experience – a mix of sales, marketing and customer-support efforts. It’s too easy to forget to remind customers how great their experience was so that they will be more willing to make further referrals. Out of sight is definitely out of mind, in this case.
They recommend you identify the ‘ideal’ referral candidates, articulate your company’s USP and how it relates to their network, create the ideal environment for referrals and thank the referrers.
How To Make Referrals Work Hard For You
All business coaches will tell you that the best way to make referrals work for you is to stay in contact with your network.
Referrals don’t cost anything and statistics show that a ‘referred’ prospect is seven times more likely to buy than a cold, un-referred prospect.
Word-of-mouth advertising can be a slow way to generate sales, so business coaches will generally advise you to explore other avenues.
Joint Venturing can actually help the word-of-mouth referrals as well. When you look for a Joint Venture partner, look for a person who has the type of database that you want to tap into, and who has credibility, a great reputation and a willingness to participate.
“Why not get together with your competitors and share your unconverted leads?”
Consider Joint Ventures with your competitors. People mistakenly assume that every other company in their industry is a competitor. But they’re not. Why not get together with your competitors and share your unconverted leads?
On the Internet, two ways that you can leverage lead generation instantly are:
- Joint Ventures and going to other people with similar websites.
- Pay-per-Click – Having an advertisement that you pay for. On Google, you can get it up and running in 30 minutes – maybe even less sometimes – and you can be getting people clicking through to your website pretty much instantly.
You can go to Exhibitions and Trade Shows and generate leads. Someone else has done the hard work to get thousands of people interested in a certain industry or profession together and you have access to those thousands of prospects all for the price of renting a stand. To take advantage of the opportunity, you need to have something to give away to those prospects. You say, “Give me your details and I’ll give you this.” The giveaway must be irresistible. Then you have something more valuable than you could ever imagine: the details of several hundred people who are interested in your product or service.
Do the follow-up. Put their details on the database and categorise them. Focus on the people who do want what you have to offer.
What do you actually do with the data once you have it?
Get the information the person requested into their hands quickly. If you respond fast, people are impressed. Send something out in the post and then have Telesales follow- up. You get the edge on your competitors because they probably won’t send it quickly and probably won’t follow- up.
It’s about building relationships with people who have asked to receive information from you. And then, it’s about building that relationship over time. That’s why business coaches emphasise patience and planning.
Just because someone did not buy today does not mean they won’t buy next year, the year after, or the year after that. You don’t quite know when they’re going to buy, but the database allows you to keep in touch – so that you have the opportunity to present your product, your service, over a period of time.
How To Get New Customers At Little or No Cost
A referral is someone else doing your sales and marketing for you at no cost and because they want to. Their experience of your product or service was so positive they want to share it with other people.
What are the drawbacks?
If you rely on word-of-mouth referrals, your business will only grow at the speed at which other people talk. If your business offers products or services that people don’t necessarily talk about (or want to talk about) like counselling, then word-of-mouth will be a slow method of growth for you. If your customers don’t regard your products or services to be very exciting or interesting then word-of-mouth referrals may be slow.
If your product or service lets someone down, then they will talk about it in a negative way.
Business coaches often offer the following advice:“Rely on word-of-mouth referrals and your business will only grow at the speed at which other people talk.”
Before you ask for referrals ensure that the product or service you offer is regarded in a positive way by your existing customers. It should delight rather than merely please.
To speed up the process, ask your customers for referrals. Have your customers out there telling everyone they know about your product or service. The only way they will do that is if you encourage them. The encouragement can be as simple as a request that they refer a friend.
How To Get Lots of Referrals
The easiest way is to do something that is so extraordinary people can’t help talking about it. Think of something you can do that makes it intrinsically conversation-worthy.
Give people a reason to talk about your business, product or service. It has to be a reason that isn’t completely self- serving to you. People won’t mind helping you to build your business if they have had a good experience but they’re not going to go out of their way to do it. Why should they?
The art of getting lots of referrals lies in the way you ask for them. If you say, ‘Do you know anyone else who might enjoy my product/service?’ people will say they’ll have a think and let you know. The chances are they will forget the question once they’ve left your premises. So be specific and be direct. Ask, ‘Who do you think will benefit from my product/service?’ When they tell you, ask them specifically where you can find those people (their company, industry, or within the organisations, clubs, groups or networks they belong to).
How To Maximise Your Referrals
It’s very simple to set up a recording device in your office. When customers say something positive about your product or service, ask them to repeat it into the microphone. Explain you’re putting together a short compilation CD (or mp3) of people saying how your company has helped them. Alternatively you could hold a ‘Customer Appreciation Day’ and invite all your customers to come to your office… offer free refreshments and thank them for their loyalty and business. have someone there with a microphone to record their positive comments. Send all the recordings to an audio editor (you can find them on the Internet). You will then have a CD of people saying nice things about your product, service and company. You can send that CD to your potential customers (people who have enquired but not yet purchased).
You can set up an 0800 phone number that plays that CD… put the phone number on your website, in your brochure or on your business card. It says ‘dial this number free of charge and listen to what our customers say about us’. Your customers will once again be your (unpaid) salespeople. They will be referring your product or service to people they don’t even know.
Do you have a super effective tactic for getting referral business? Do you have a question about how to generate more referrals in your business? As your business coach, I’d love to hear about them!
