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One of the easiest customers to get is a referral. Why? Because the person who is referred to you already has a level of comfort and trust with you.
Additionally this person definitely needs your product or service because he or she asked for the introduction. So the prospect is certainly qualified.
This article will outline several immediate steps one can take to generate more referrals in his or her business. The first thing that one must understand is that for someone to refer he or she must first:
1) They must be able to refer you people.
2) They must want to refer
3) They must be thinking of you
Let's analyze this a bit more. They must be able to refer you people: For someone to be able to refer they must know the right people who would be good customers. This is generally the easiest part, but you need to tell these people who make good customers. Do not shortchange this process.
They must want to refer you: Often time's people are lazy. You need to give them a good, concrete, specific reason to refer you. Depending on what industry you are in it normally makes sense to reward people for referrals.
If you are objecting to this you need to seriously consider figuring out the total lifetime value of a customer. Spending a little bit of money to get a customer that is worth hundreds or thousands to you over the lifetime of the relationship is generally a no brainer.
I recommend giving people rewards in terms of money, date nights with their spouses, and more. Sometimes prizes are better than money because people feel obligated to use the money to pay off debt, and that is not as fun for them.
They must be thinking of you: This is very important right here. Every day people are bombarded with information, sales pitches, problems, noise, and other things in life. Your referral partners are NOT thinking of you all the time. The same goes for your customers.
Many research studies have shown this to be true in that most people cannot remember the name of their mortgage broker, real estate agent, plumber, or anything else if that person just disappears after one transaction.
So how can we overcome this? There are important things here and you must understand the lifetime value of a customer so you can justify this financially, but here several things you can do right away. Birthday cards to your customers and referral partners. Holiday cards to your customers and referral partners.
A monthly newsletter also can go a long way. This newsletter should be interesting and fun to read. It should not be all about you, but valuable to your network. It is best if this is done via print since email is becoming less and less valuable over time, but a combination of print and email is fine.
Regardless email is better than nothing. There are dozens of other strategies. Parties you have for your whole network to attend. Half birthday cards sent to your network. There are also anniversary promotions, their kid's birthdays, and on and on it can go. Why all the trouble?
You go to all the trouble because ultimately you are trying to build a strong relationship with your customers to where they are always thinking of you.
The final piece of this puzzle includes the actual delivery of your product or service. Now when I say delivery I do not mean via UPS or FedEx, etc. I mean the experience you are creating.
You must do more than expected. Why? Because if you just meet people's expectations they are going to be happen but you are not going to create a super powerful impression in the minds of your customers.
You need to create such a powerful experience that they are forced to tell people about your product or service. Here's an example: You do lawn care and instead of just mowing the lawn and leaving you send a thank you note, along with a free report on tips to maintain their lawn, and a little box of chocolates or cookies.
That is more than 99.9% of other lawn care providers will do. How much does it cost you? A few dollars, but if you get one referral over the lifetime of the relationship then it becomes worth it.
Do you get the idea? Once you apply all these concepts together your business will skyrocket from referrals. People will know how and who to refer, what is in it for them, and be constantly thinking of you. You can have a never-ending stream of referrals coming into your business, and that is something that will give your business more profitability and security.
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