Some of the most successful business people I know rarely advertise their services. The majority of their business comes from referrals and positive word-of-mouth. While we all hope our customers talk positively about us to their colleagues, you can speed up the process by proactively asking for referrals, effectively turning your customers into your best salespeople. Here's how to do it.
Respond to a compliment with a referral request
The next time a customer or client thanks you for your services or goes out of their way to let you know they appreciate the job you've done, use it as an opportunity to ask for referrals. It can be as simple as saying, "Thanks tell your friends!"
Provide referral tools
Make it easy for others to refer you by providing tools to make the job simple. Send out an e-mail offer to your existing business contacts and ask them to forward it to anyone who might be interested; run a contest on your Web site where everyone who provides a referral is entered into a prize drawing; give stacks of business cards to people who like your products or services and encourage them to distribute as they see fit; and ask customers if you can display cards or brochures at their place of business.
Ask for introductions
Even better than a referral is a personal introduction to a potential business contact. Don't be afraid to ask "someone-you-know-who-knows-someone" to make that introduction.
Devise a referral reward program
Get proactive in your request for referrals by developing a way to thank those who pass your name along to others. Successful techniques include offering a discount on future services or a one-time perk or freebie for the referring individual.
Make referrals yourself
This is the premise of what "leads" networking groups are founded on. I give you a referral, you give me a referral. We all know people who are looking for specific products and services and those who are looking to provide that product or service. Keep a running list of "who needs what" and make connections for others wherever you can. Your efforts will come back to you ten-fold.
Make sure you're referral-worthy
One of the most frequently asked questions on business surveys is, "Would you refer our product or service to a friend or family member?" The reason this is a popular question is because the response is quite telling. Even those who regularly use a particular company's product or service might be doing so only because it's a long-established relationship or they feel the product or service is hard to find elsewhere but they still wouldn't be comfortable singing the company's praises to anyone else. Consider the response you get when you ask for a referral is the person hesitant, or do they try to put you off? If you don't get a positive response to referral requests, be upfront and ask about the hesitation. The feedback you receive could be just as valuable as a referral.
Build rapport
Whenever possible, reference the referring individual when making contact with a prospective client. This will serve as a reminder that you're not making a cold call from off the street, but that you were specifically referred by someone who likes your work.
Be specific when you ask for a referral
It's much more effective to ask for specific, rather than general referrals. For example, if you're a small business bank officer, rather than solicit "new bank customers," you may be better served asking for referrals for small business construction loans or lines of business credit.
Promptly follow-up on referrals
If there's a prospective customer waiting for your call, contact them ASAP to get the relationship off on the right foot. The same goes for thanking others for referrals. In fact, make it a point to touch base with the referring party regardless of the outcome of the referral. If a meeting doesn't go as anticipated you can always make note of it in the hopes of help with follow-up.
Always track referring parties
Any time you get a new client or customer, ask how that person or company came to find you. Not only does this help you track where referrals are coming from, it also gives you the opportunity to personally thank those who speak highly of your business.
Dave Archer is president and chief executive officer of Nevada's Center for Entrepreneurship and Technology. Contact him through ncet.org.
