The easiest business you will ever get is more business from existing customers if they are satisfied. And if they are satisfied customers then they should not only purchase more from you but become a walking advertisement for your company. The problem is most of them don't. Why is that? Don't expect people to know that you need more business or the type of customers you need. Your customers are busy people who have a lot on their mind and unless you remind them they probably won't give you referrals. You need to make it very easy for them to be a walking advertisement for you.
Most of my business now is referral business, but I had an interesting conversation the other day with someone who has known me for years and is in a position to refer customers to me. I was talking about what I was doing with the direction of my business and how I was currently serving my customers and mentioned that I could use a few new clients in certain areas of my consulting practice. He said, "I never refer anybody to you because I thought you were really busy and couldn't take any new customers." I wanted to shout, "Where in the world did you get that idea?" Instead I politely said that I always appreciate referrals and that I most always have room for new customers as I finish projects. This was a huge eye-opener for me. Somewhere in my recent past I must have stopped asking for referrals or be giving the impression that I don't need new business. Everyone needs new business, but we can't expect people to know that. You have to consciously remember to ask for referrals when appropriate.
Surveys say that if asked over 80 percent of satisfied customers would give a referral. When questioned further, those same people said that they were rarely asked. In fact it was as low as 4 percent of the time. So are your salespeople asking? How do you get your customers to go around telling everyone how much you have helped them and recommending you to everyone?
Since the second easiest way to get business is referrals from your satisfied customers you need to have a referral process. So what is your referral process? If you have one, be sure it is written down and communicated to all of your salespeople. If you don't have one here are some ideas to get you started:
Do an outstanding job for every customer.
Check periodically for customer satisfaction. When a customer says they are happy that is the best time to say something like, "We appreciate your business and we are looking for other customers like you. Do you know anyone that could use our products and services?"
If a customer is not satisfied, fix it right away. Once it is fixed ask them for a referral, if they won't give one it may be a sign that they are not completely satisfied or that you will have to do more to earn back their trust.
Send your customers handwritten appreciation notes and include a business card.
Ask them to give the card to someone they know that could use your products and services.
Send an e-mail special offer to your customers and ask them to forward it on to others who may be interested.
Be specific about what kinds of customers you are looking for. "I am looking for companies that need the personalized service we provide." "I am looking for entrepreneurs who want to outsource their controller function." "I want to help entrepreneurs who can't afford to have a full time assistant."
Here is a sample referral process for consistently asking satisfied customers for referrals. It will start you on your way to having your customers become a walking advertisement for you.
Just as the sale is complete, thank the customer for the business and let them know that you would be happy to help others that they know.
Thank customer for their business, with a handwritten note, within five business days of the sale. Place a business card in with the note and ask them to pass it on if they know someone who can use your products and services.
Call the customer two to three weeks after the purchase to determine their satisfaction level.
Send a newsletter four times a year. Provide useful information and a section thanking people for their referrals and reminding them that their referrals are always welcome. If you reward for referrals be sure and highlight that as well.
You will start getting referrals if you put a process in place. but if you don't thank customers the referrals will stop. Thanking them isn't enough. If you really want them to send you referrals be sure and also let them know the outcome. I don't get annoyed easily but it really bothers me when I give someone a referral and then I never know whether the two parties connected let alone the outcome.
So, when you get a referral:
* Ask them to introduce you by e-mail, on the phone or in person. If they aren't willing to do that, ask for permission to use their name when making contact.
* Thank the customer for the referral at the time.
* Send a thank you note by mail or email within five business days.
* Let the customer know as soon as you have connected with their referral.
* Let the customer know the outcome and thank them again. If you made a sale you may want to reward the customer who gave you the referral.
If you do these things your customers will surely become a walking advertisement for you.
Building, publishing and implementing a referral process is essential.
Here are some tips to help you do that:
* Bring all of your salespeople together to discuss referrals.
* Ask them how they currently get referrals.
* Write down all of the best practices.
* Let them help you design the referral process that will be implemented.
* Set goals for the number of referrals they will get each month.
* Have them determine how they will be rewarded for getting referrals.
* Continuously encourage your salespeople to use the process and ask for referrals.
* Post the number of referrals each salesperson gets per month.
Most Realtors are especially good at getting referrals. They send e-mails and cards to their customers that say things like, "The best compliment I get is when you refer your friends and family to me." There are a few retail shops in town doing a great job of getting referrals. Vino 100, a retail wine shop in South Meadow,s has referral cards that they give out to customers to give to friends. Imagine That! furniture store has an elaborate referral program that rewards the customers that spread the word. Both of these referral programs are driving in business consistently.
You can increase sales starting tomorrow if you put a referral process in place and be sure that your salespeople are working the process. So what are you waiting for? Don't you want all of your customers to be a walking advertisement for your company?
Alice R. Heiman is president of Reno-based ARH Consulting. She'd like to hear your stories about building a sales culture at your company. Send them to stories@aliceheiman.com.
