How To Get More Referrals

You may love or loathe asking for referrals but they are the best form of advertising for your company. Think about it: the customer who comes via a referral is already convinced of the value of your product or service - someone else has done all the hard work of educating, persuading and recommending. It's the best form of advertising possible and all at a very low or no cost to you.

So how do you get more referrals?

Word-of-mouth

Deliver an outstanding service or product so that customers want to recommend you to others. When they do that, thank them for the recommendation - people like to be acknowledged. It doesn't have to be an extravagant gesture: a simple phone call or personal note to acknowledge what they have done will have enormous impact. If you have the budget for bigger rewards, then by all means offer something more.

Offer A Guarantee

Allay the fears of any potential clients by offering a satisfaction guaranteed claim. Let your clients know that you offer this guarantee so that they are more likely to take the risk to recommend you to their clients.

Ask For Referrals

Timing is everything: ask the customer at the point of delivery when they are feeling most euphoric about your product or service. 'Is there someone you know who also has [the problem your product or service is resolving]?'

Ask In Writing

Expand your referral process: at the end of your printed material, emails and website say, 'We appreciate referrals' to remind your customers that you like referred business.

Send Referral Letters

Write to your clients and ask them to refer a new customer to you. In the letter, tell your customer that you consider them to be one of your best clients and that you would like to find other quality clients just like them. Strengthen the letter by offering the customer bonuses or incentives for their referrals.

Create A Referral Form

Design a referral form and include it in your mail outs, with your newsletter, ezine, and post it on your website. Since people are often unsure whether their contacts will find your product or service useful or relevant help them by asking questions that relate to the benefits your product or service provides (for example, 'Who do you know who would benefit from...?' or 'Who do you know who needs help with [the problem your product or service is resolving]?)

Offer An Incentive For Returning The Form

Reward the people who do return the form with a discount on their next order of your product or service.

Reward Customers For Referrals

People lay their reputation on the line when they recommend a product or service. Reward them for doing it. Offer incentives for referrals that turn into business. Rewards can range from a free estimate, sample, or consultation to a discount on future purchases to extra goods or services at no additional cost.

Note: Do your sums before you begin a reward system. Don't pay beyond what the referral is worth - experts suggest a reward worth no more than 15% of a project's revenue.

Offer A 'Finder's Fee'

If your budget can take it, offer customers or other businesses a 'finder's fee' for the referrals they send. Offer a set fee or a percentage off their next purchase from you when that referral becomes a paying customer.