Top Tips for Getting Referrals

If you are not taking advantage of getting referrals, you can be burning thousands of dollars. Blow out the flame today!

Referral management can help building referrals easy and profitable. Sales referrals are 80% of one of my businesses, while only 20% come from my advertising and marketing. But don’t get me wrong, advertising and marketing is still important because it builds brand recognition which encourages sales referrals and builds relationships.

The benefits of getting referrals include a shorter sales cycle, higher conversion rates, and a higher return-on-investment (ROI). When you connect with a new prospect there will be little convincing because your customer already pre-sold your services improving your sales cycle and conversion rate. Also, with an effective referral list, one customer can amount to the equivalent of three or more customers.

Think of getting referrals as Multi-level Marketing. 1 customer turns into 3 customers, turns into 9 customers, turns into 27 customers. Are you getting the idea of how powerful this can be? But you have to ask your customer to refer you to make it happen. Your customers will be more likely to refer you if you ask them to. Therefore, if 1 person equals 27 customers and each buys an average of $$$ worth of services or products, then how much money are you losing by not asking one customer for referrals? Just think about that and try not to kick yourself too hard.

But Who Can Refer Me? Create a Referral List in a Database

Almost anyone can refer you. Your referral list should be longer than your current lead and customer list. This is because it should include everyone you ever met, with some exceptions of course.

Don’t limit it to just your customers, but don’t include your unhappy or difficult customers. Remember that people hang around with like-minded people.

Even if someone didn’t choose to do business with you, they may have wished they did. Sometimes a prospect will be unhappy with their ultimate choice that had the better deal but horrible results.

People to Add to Your Referral List:

• Your customers
• Past sale’s leads that did not purchase
• Your competitors’ unhappy customers
• Your competitors’ happy customers that you may have referred to them
• Others in your industry that are not competitors (example: If you sell toothbrushes, then a dentist and toothpaste company can refer you.)
• Your vendors
• Your suppliers
• Friends and Family
• Everyone you ever met

Tip: Networking with your competitors can be a good thing, and sending them business that you can’t handle can be even better. Customers that you send to a competitor will remember how unselfish you were by helping them. The competitors will payback the favor by sending you referrals as well.

Send to the referral list your company information, specials and announcements. The leads will remember you and refer your services if you keep them informed and updated.

If You Want Sales Referrals, You Need To Keep Them Happy and Informed

There are different ways you can keep your customers happy and your referral list informed. Don’t create happy customers by accident, and don’t make getting referrals an accident. Make it happen.

Here are some programs and systems that you can create within your business to build customer referrals:

• Customer Loyalty Program
• Quality Assurance Program
• Customer Advisory Board
• Buyer’s Remorse System
• Occasional free gifts or items of value to them like information
• Referral Rewards Program
• Commission Program
• Referral Program
• Affiliate Program

When and Where To Ask For Getting Referrals

Ask for referrals before, during and after the sales and delivery process. Socialize with potential referrers at networking group meetings, invite people to one-on-one lunches (make friends), create a social networking site for your customers, and throw a Christmas party. Create reasons to meet with them and socialize.

Implement Recommendations and Testimonials in your Marketing

• Collect testimonials and use them in all your marketing materials
• Create a book or area on your website with testimonials and case studies
• Use as live testimonials (past customers) at marketing events like trade shows
• Have customers comment about you on the internet through review websites
• Create an affiliate program
• Encourage your referral leads to leave comments on forums, blogs, social networking sites and social bookmarking sites

How to Encourage Getting Referrals?

Make it valuable for others to refer you. Offer commissions, free gifts, discounts, rebates, and finder’s fees. Everyone is motivated with benefits; what’s in it for them.

Most Important: Take Action

Once you get a sales referral you must act on it. Have a system in place for your sales department to follow-up on sales referrals and turn them into sales.

Important Tip: Create a system to track referrals. You want to know who is referring the most and award them. Also, find out what they are doing to create all the new referrals and share that information with the others on your referral list.

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