Referral Marketing

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How to Get more Referrals

Get All The Referrals You Can Handle

How Can You Get All The Referrals You Can Handle?

That's easy! Show your clients you care about them and that you value their business and loyalty. How do you do that? Well, there are various ways, but I am going to concentrate on a technique which has proved extremely successful for some sales legends. Can it work for you? Well, why not?

Joe Gerard is a sales legend in the auto industry. Walk into a car dealership and ask the salesman if he's ever heard of Joe Gerard? He will most likely respond in the negative, "NO". Too bad. This just means that you are probably dealing with some one who does not care enough to learn the art of selling cars. Why IS Joe Gerard important? Or even relevant. Without going into Mr.Gerard's life story, I will condense it to the relevant part. Joe holds the record for the most cars sold by a salesman, in the world. In the world. He prospered through 1967 to about 1977. He thrived, not survived, through 2 recessions! He broke his previous years record recession or not. He didn't know there was a recession going on.

How was this possible? Well, Mr. Gerard learned early on in his career that people (clients/customers) like to feel appreciated and valued. Mr. Gerard made sure that ALL his clients were reminded of how valuable they were to him. How he appreciated them. And Mr. Gerard did this with sincerity. He cared about his clients.

You see, Mr. Gerard used a simple system of keeping in touch with every single one of his clients. Every single one! He did that by every day sending out happy birthday cards, Easter cards, Christmas cards, Thanksgiving cards, Fourth of July cards and any other occasion he could think off. I'm not saying he sent all his customers a card a day, but he made sure they knew his name and knew where he worked. Mr. Gerard became like a family member to some through his diligent contact, or at least a trusted friend.

Mr. Gerard had tremendous repeat business and tremendous referrals. Word of mouth advertisement was the side effect of Mr. Gerard's daily routine and effort. His routine was positive and the outcome was positive. The return on investment was ten fold to say the least.

Can anyone do this? Well, the answer is not cut and dry. Yes, anyone can use this technique. But not many can continue this routine without life getting in the way and derailing the honest effort. Think about it, you have to go to the store and purchase cards, get back in the car and return to your office or home. Then you have to write the cards, write the address on the outside of the envelope, put a stamp on it and again go out to put the cards in a mailbox or drop them off at the post office.

There is good news though. I market a client retention and client referral system that saves time and money. The system is automated and very intuitive. The time savings gives a sales professional the precious extra time he needs to spend on building his business relationships. The cost savings will definitley be sure to please. The value and convenience are invaluable and a tool a true professional should NOT be without.

For further information on how the system works and to qualify for a free 14 day trial, contact me to schedule an appointment for a brief visual presentation. This is a no strings attached offer and all information is kept strictly confidential. I market this to smart business individuals and I am aware of how important privacy and security are. This being said, re-emphasizes the value of a client and how not to ruin that relationship.

Remember, your client is yours today. Your competition is looking for your client. Can you keep your competition from getting your client?

Want to learn more about this incredible sales legend/
Go to Joe's bio

Watch this 10 minute Referral Movie to see more about Joe Girard.

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Why Referrals Are Important

Getting New Clients

Referrals are powerful because they are given by a credible third-party that has had a positive and pleasant first hand experience of doing business with you. This party knows and has experienced the benefits of the product or solution that was provided. These referrals carry even more weight when they are given by close friends and family, and usually will imply trust between them. In addition, you know that the close friend or family member has no ulterior motive behind the recommendation other than having your best interests in mind. Believing them is much easier than hearing a commercial from a salesperson whose sole purpose is to make money from you.

Referrals are very valuable because most of the time they are completely free. Wouldn't you like to receive the benefits of the most compelling sales advertisement on earth for absolutely nothing? Of course you would. And you can, through referrals.

Research shows the importance of referrals. According to Paul and Sarah Edwards (authors of "Getting Business to Come to You"), up to 45% of most service businesses are chosen by customers based on the recommendations of others. A recent Dun and Bradstreet survey found referrals to be one of the two most popular small-business marketing methods (the other one is advertising).

Customers that give you a quality referral are usually the customers that are going to be loyal and most often, repeat business. So when a referral is given it implies that the customer thinks very highly of the product or service, and trusts that the referral (friend, family member) will be treated the same way and receive the same benefit or solution from that they had. Once someone stands up and makes a public statement about you, psychologically they will become more loyal to you and your business.

Does Good Customer Service Equal More Referrals?

No, not neccesarily

This is not to down play quality customer service, but good customer service does not always generate a referral. The reasons are varied and sometimes not understood. It could be that the client received great service but other elements of the transaction, shopping experience, or in some cases a restaurant visit, were lackluster, or not up to expectations.

However, customer service is an important and crucial part to the success of your referral program. It is the foundation of your referral process. But remember, just because you give good customer service doesn't mean that it will generate a lot of referrals. Receiving referrals on an ongoing basis is not an element that should be left to chance. A solid referral program requires deliberate planning and constant attention. That's why some networking groups like BNI make it their business and sole purpose to develop and nurture a great referral system.

This is where some small business owners make a big business mistake. They assume that just by giving good customer service the referrals will happen all by themselves. This isn't true. If you are not deliberate, focused, and proactive in creating referrals, the chances of you receiving as many referrals as you want are greatly diminished, and maybe even slim to none.

Your best customers are ready and willing to give you referrals as was shown in the statistics above, you just need to show them how.

Is Word of Mouth Advertising and a Referral System the Same

Again, not neccesarily

Well, they appear to be one and the same, right?

Word of Mouth advertising happens when one of your customers or friends mentions your small business in a casual conversation. It's not intentional or planned. It's just something that came out of their mouth.

A referral system is a methodical process that you have put in place to capture qualified prospects through your association with other people. A "system" by its definition is a "process that products predictable results." A system can be turned on and off like a light switch at will. Your business needs word of mouth advertising but don't mistake that with developing a methodical system for referral prospecting.

* Perhaps the simplest way to systematize your referral program is to write a simple letter to your customers asking them for their help.
* Another simple method of systematizing your referral process is to give referral cards to each of your customers.

Make it Rain Referrals with the Right Attitude

Your Attitude dictates the outcome

People often ask me this question, "How do I get more referrals?" My answer is always the same, "You must ask for them." Most small business owners know that they have to ask for referrals to get more referrals but it's the fear of asking that impedes them from moving forward.
This fear of asking is rooted in your attitude. If your attitude is one that believes that you are asking that person to go out on a limb for you by asking them to give you referrals then you will always be battling with fear.
If you truly believe that it will be helping them if you ask them to give you referrals your fear would fade quickly. Your customers want to give you referrals. It makes them feel good that they found a great small business that they had a good experience with and they want to share their "little secret" (you) with their friends.
They will be seen as a hero, or someone "in the know." And when their friend receives great service from you as well, your referring customer will feel as though he was able to do their friends a great favor.
When you ask for a referral, and you have treated that person right, you are actually doing them a special favor.

How To Ask For a Referral

Has someone ever asked you for a referral?

Has someone ever asked you for a referral? Did it go something like this: "Hey John, by chance would you know someone who could benefit from my services?" John starts to ponder and think about it and eventually says, "Well, not off the top of my head, but I'll keep thinking about it."

This is how 90% of all referral questions are asked and unfortunately, you might as well not ask the question. Rarely, if every, will you get a positive response. Why? Because you didn't ask the question right. "know anyone who..." questions are too broad for people to think about.

People need a frame of reference to help them narrow down the playing field of potential referral candidates. For instance, imagine that you are talking to one of your good clients who is pleased with your services.

Here is a good way to ask in a conversational manner:

You ask her, "Mary, you're a member of the Women's Financial Planning Association here in Chicago right?"

Mary responds, "Yes, I am."

You ask, "Do you go to their meetings on a regular basis?"

Mary says, "Yes, most of the time."

You pop the question, "Is there anyone in your association that you believe could benefit from my services? Maybe one or two people you've known in the group for awhile or sit next to regularly?"


Did you see the difference? You gave Mary a narrow frame of reference from which to think about. It allowed her to "see" the potential referrals in her mind. This may be limiting the number of potential people that your associates might know, but it is far more effective than opening up the ocean of people that Mary may know, but can't remember. Your request will also stay in Mary's mind long after you've asked it because she visualized your services with much greater intensity.

Two Types of Referrals

The Difference Between Referrals

There are two sources for referrals. The first and most common is your current customers (people who have done business with you). The second is other influential people. You should have an active referral system for both types of people.

Your customers are perhaps your most enthusiastic referrers because they have experienced your product. But, you may in fact, get more referrals from other influential people who have never tried your product.

Develop a system for obtaining referrals first from your customers and second from other influential people or "Centers of Influence." This way you are developing 2 sources of referrals that will constantly grow over a short period of time. These I refer as 2nd. tier, 3rd, tier, and even 4th. tier referrals. First tier are the people or customers whom you have initial contact with. Second tier are those whom your 1st. tier referred to you, and 3rd, tier are people who were referred by the 2nd. tier customers. You're getting the picture. It is unlimited how deep and wide your referrals can go. But developing them and nurturing them like a garden is extremely important and usually grossly underestimated.

Customer Referral Program

Implementing and Using a System

Receiving referrals from customers starts with giving great customer service. Without going into much detail about the ins and outs of customer service I'd like to share with you seven "Moments of Truth" that provide opportunities for you create a loyal customer for life.

Pay close attention to watch out for these seven moments of truth and if you go the extra mile at the right time, bang, you have a lifetime customer.

Moment of Truth # 1 The moment your customer complains.
Moment of Truth # 2 The moment one of your new customers comes back to
place a second order.
Moment of Truth # 3 The moment a customer has thanked you.
Moment of Truth # 4 The moment one of your customers has been through a
hard time because of a foul up on your (or their) part.
Moment of Truth # 5 The moment a customer needs a favor from you.
Moment of Truth # 6 The moment you see your customer in public.
Moment of Truth # 7 The moment your customer brings in a referral.

Take these moments of truth seriously. Teach them in your customer service training. Put them on a wall for employees to review. Make a small card with the moments of truth on them. Produce cards with the 7 Moments printed on them and distribute them to each employee.

Sponsor an employee competition for the "Best Moment of Truth" by having your employees record the moment of truth and what they did to capitalize on it. Think of creative ways to reward your employees for recognizing a moment of truth and taking advantage of it and it will revolutionize your small business.

Centers of Influence

80/20 Rule

Your best referrers are your customers. The people who have experience with you and can vouch first hand for your product and service. However, there are many other people and organizations that you must include in your referral prospecting system. These individuals are people who know and mingle with many other influential people. These people are often known as, "Centers of Influence."

Centers of Influence can multiply your marketing efforts ten-fold. They turn your marketing efforts from one-to-one to one-to-many. They are the heavy hitters that can have a profound multiplying effect on your business. A smart small business owner will spend the majority of his referral prospecting time with the 20% of their Centers of Influence that will produce 80% of the results.

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paulcamarinha

Mr. Paul Camarinha is a keynote speaker, seminar leader, certified professional coach and consultant. Currently speacializing in helping people go beyond... more »

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