Growing Your Business: Getting Referrals
The cost of getting clients and customers can be significant. Ideally, you and I have spent time together to build your strategic and targeted marketing plan, but even with that, sales and marketing are costly. And it can be hard to know what works.
That is why customers and clients that have been referred by someone else are the most cost-effective and ideal type of new business. There is one word that explains this: TRUST.
Trust becomes inherited when it comes through someone else you trust. I am continuously asked about referrals for other services, products, or people that have the resources my clients need. I am careful to only referral people to those that I know will serve my referral well, and not reduce my own creditability in taking care (or not) of that person.
Keeping Customers
Getting referrals from existing clients starts from keeping those clients in the first place. Some of the statistics on this are fascinating. A referred client is 15X more likely to buy, and an existing client is 10X easier to sell to. Compare that with the fact that 90% of people who have a bad experience won’t return.
Referrals come from your delighted and amazed customers. So, start there. To be clear, there is always a risk for customers and clients to leave. Will the service be better? Will they waste time and money trying? Regardless of how persuasive a competitor is, the risk and fear of changing is often a barrier when they are already delighted with you.
Recognize that all people experience buyers remorse, even if just a little. Even if they have started with you, they might still wonder if they made the right choice. Their loyalty to you may take time to develop. As an owner, think about some of the ways you can remind them regularly that they are important to you:
Keeping appointments and being on time.
Being responsive and communicative.
Sending them personal thank-you’ s, resources, or tools.
Ask for feedback or check in.
Respond to questions and concerns quickly.
Word of Mouth
It has been previously indicated that when people have a negative experience, they share that experience with 9 or 10 other people. When they have a positive experience, they tell half as many. Without analyzing human behaviour too much, if you assume this fact to be true, then delighting people has the double impact of preventing a negative story while encouraging a positive one.
Asking for Referrals or Reviews
There is nothing wrong with asking someone to connect you to other people who might also want or need your service. You can do this while you are talking to people before they commit, or after. Look for moments in your interactions to have your client connect you with people in their network, circle, or life.
If a client is satisfied with you, it’s a great opportunity to ask for them to pass along your information, or to write a positive review. This could be done during a call to check in on the quality of your work or when asking for feedback. The highly satisfied customer is an easy champion for you, if you leverage them.
If your client came from a referral, then be sure to circle back to the source of that referral and thank them. Clearly you won’t disclose any personal or confidential information, but even just acknowledging that this referral worked out for you shows your appreciation. It encourages that person to refer again.
Final Thoughts: Maximizing Referrals for Business Growth
The bottom line here is: be referrable! Look at yourself and your service and think “would I hire me? Would I refer me to people that know me, love me, and trust me? Your answer to those questions might be telling for you.
Want to talk? Reach out.
Adapted from “Growth 3.3 Getting Referrals.” by FocalPoint Coaching and Training Excellence, Copyright 2018, by Brian Tracy and Campbell Fraser. Reprinted with permission.
