How To Generate Referrals For Your Business

written by: Scott Cardinal; article published: year 2010, month 05;

In: Root » Business » Marketing

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People want to do business with other people they know, like and trust. If they do not know a lot of people directly, they count on referrals from friends, acquaintances, and business contacts. You need to take advantage of this strategy by encouraging your past and current clients to refer you to others.

You need to deserve the right to have others refer you. The best way to do that is to offer great service to everyone. Think of each client or customer as more than the amount you are earning off them now, but how much your relationship with them can generate over many years to come if and when they refer you to others.

Your clients might not know that you want and need them to refer customers to you. Periodically let them know by asking them, following up with them, but do not hound them for referrals.

Do not ask for referrals when you start working with a new client, or even while you are working with them unless you have an ongoing business relationship with them that does not have a completion date. Once you are confident that they are satisfied with that you have offered, then you should ask for referrals. Be sure they are educated about your business and all the services you offer so they can refer you to qualified leads.

Some of your clients will be better referrers than others. Even though you hope to ask them all for referrals, don’t be surprised if only 20% come through for you.

Make it easy for them. Let them know who you are hoping to work with and ask if they know anyone you are targeting. If they are receptive to the idea and you have a strong relationship, ask if they will send an email or make a call on your behalf. Doing so will really open doors for you.

Ensure that you do not make anyone feel uncomfortable, obligated, or pressured into giving a referral. If they say no, then accept then, but you may want to respectfully find out why.

Ask for testimonials from everyone you work with. When you contact people in the future, they will be interested in reading the testimonials of those they may or may not know. It is the next best thing to a personal referral.

Do not be afraid of asking for referrals because you do not want to appear rude, or as if you are desperate or begging. Truth is, if people like you and what you do, they are happy to offer a referral. Besides, if they are in business, too, they likely understand that most small businesses are built by word of mouth, and they will appreciate your referring business to them if and when you get a chance.

Reward anyone who refers business to you. Choose a gift that is appropriate. Cash may always be appreciated but it is not much of a gift. Cash is more of a “tip.” However, a gift certificate to a restaurants or some business, or a bottle of wine or a delivery of muffins, or even two tickets on a 1-2 day cruise might work, depending on the value or the referral. You can also hook up with a local charity or organization, such as an animal adoption and rescue group, and donate a % of profits to them.

Referred customers can be a bit of a cake walk because you may not have to sell them on what you offer since the referrer may have already filled them in with that info.

One of the best ways to get referrals is for you to generate referrals for others. Find out what others want and need and do what you can to assist them.

Let your clients know that they will be so impressed with your service that they will be pleased and interested in providing you with at least a dozen qualified referrals within the next six months.

Build trust with everyone you do business with. Thank everyone who trusted you enough to hire you, and stay in touch on a regular bases. Build a foundation of trust, help others and your referrals will grow.

About The Earth Savers Institute

The Earth Savers Institute is the Official Training Affiliate of Green Earth Corporate Kindness Organization (GECKO), which is a 501(C) 3 (tax-exempt) non-profit corporation dedicated to helping businesses & non-profits become better stewards of the environment. GECKO is perhaps the only Non-Profit organization in the United States with the sole mandate of helping companies & non-profits improve their environmental practices. Their collective MISSION is to help companies & non-profits improve their environmental practices and address the remarkable need for affordable environmental education & change assistance. For more information, visit EarthSaversInstitute.com or earthsaversinstitute.prfessor.com or EarthSaversInstitute.net.

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