In this week’s training video, we discuss the secrets to obtaining referrals for your business. Referrals are the very best way to generate qualified leads. A personal referral is more powerful and compelling than any advertisement in a local paper, a discount coupon in the mail, or on-line advertising. Period. There is something about recommending a specific product or service that gives it added credibility and legitimacy, even when a stranger gives the recommendation.
There are 2 types of referrals:
- A passive referral – this is when a business doesn’t ask the customers to refer people they know. This typically brings a few new customers, but not in any significant numbers
- An active referral – involves asking your clients to refer people they know. A powerful referral system may increase your bottom line by 5-20% or more.
Most people find it difficult to make choices about mundane things and prefer that someone they know provides them with a recommendation to remove the stress. Most people love trying new places after receiving a positive recommendation by friend and family.
There are 2 major types of referral systems that you could use for your business:
- Static Referral System – Customers are familiar with your referral program and understand the perks they will receive. Involves a concerted effort in which you ask your clients for referrals and reward them for their efforts, but you don’t move the process forward.
- Proactive Referral System – In this system you direct the entire process and have the power to reach potential clients who have been influenced by their friends. You motivate your customers to become promoters of your business by enticing them to share information about what you do with anyone and everyone they know.
But how do you turn a static to a proactive referral system? Put into place a system where you train your staff to ask for referrals from every single customer (every time). Then send out a follow-up letter to the customers highlighting the advantages and perks they could receive from each referral, such as discounts, complimentary offers. You can up the number of referral clients by an additional 200-300%.
It makes you wonder why more businesses don’t realize the power of their customers influence when it comes to generating a massive number of referrals. In most cases, it only requires them to ask for those referrals. People trust what others tell them about a business, both good and bad. Most businesses are missing out on what could prove to be their ultimate marketing tool.
Want to learn more: Request our “Insider Secrets To Generating All The Business You Can Handle” here.