Today’s post will show you how to improve your referral rate in an easy to implement system.

Referrals are the lifeblood of many businesses (including mine).

The fact that referrals already have a certain amount of trust and respect for you, and the fact that they come to you instead of you having to chase them makes them very valuable.

Referral customers…

• Already understand the value of your service and your expertise
• Are less likely to haggle over price
• Have seen you product or service in action (and obviously liked what they saw)

Any business that can generate a steady stream of referrals has a very bright future

Your product must…

• Deliver more value than it cost
• Solve a problem or fulfil a desire
• Have a clear easy to understand marketing message that represents you businesses brand and highlights its benefits

Without these things nothing I show you here will help.

Ok now that’s out of the way let’s look at some specific techniques and strategies that will increase your referral rate.

Referral System

Dropping Hints:

The first thing you must convey to all new clients is that you encourage and appreciate referrals.

This begins in the first meeting and can be as easy as mentioning that you have just come from a meeting with a new referral, or explaining that being a referral based business allows you to focus more time on clients and less on finding new business.

By letting the client know that you love to work with referrals early, they will expect at some stage you will ask them for referrals, so this gives them time to start thinking of possible candidates from their network who may need your product or services.

Finding Gifts:

As part of your referral system you may want to set up an incentive. The rewards you offer should be carefully selected to suit your particular market.

Even something small and inexpensive can have great-perceived value if you take the time to understand your market.

A massage therapist might offer an organic yoga mat or PBA free drink bottle.

A commercial finance broker may offer an electronic organizer or nice leather bound diary.

You want to make your gifts special, premium. Something they may not buy for themselves but that they would really enjoy owning.

Setting The Bait:

Now you have your gifts you need to let people know about them.

If you have a brick and mortar shop or office, display them in the reception area or behind the counter saying “Ask How To Get Your Free _____”.

If you are based online have a section on your homepage promoting your referral rewards and include a short reminder in every email or business correspondence.

You want your clients to be constantly educated to the fact you want a referral of them.

Don’t just leave it up to customers because people are busy, and the last thing on their mind is helping you grow your business.

They want to know what you can do for them.

Be Upfront:

After the sale, or on completion of the project you will want to get feedback from the client on how their buying experience was with you and also see if there was anything you can to improve or add to your service.

This is the perfect time to ask for your referrals, by saying something like this.

“As you know I’m a referral based business which allows me to focus more time on my clients and provide a great service.

If you have been happy with (your company) I would really appreciate it if anyone you know needs a _______ could you please have them contact me.

Remember to tell them you sent them so I can give you your (free gift).

Thanks again and if there’s anything I can help you with, please don’t hesitate to call.”

 

That’s it. It really is that simple.

Don’t be afraid of sounding desperate because you are not. Most people understand the value of word of mouth and if you have built up a good relationship and delivered in your promises you will begin to increase you referral rate.

There are a number of other ways to increase your referral rates through partnerships with other businesses, but that will have to be next week.

“To Your Future Prosperity”

James