Get More Business Through Referrals

Referral systems are probably one of the most important things you can implement in your business. It’s an easy way to double your business by just getting all your customers to refer just one person to you. That doubles your business. Word-of-mouth marketing is one of the cheapest things you can achieve in your business.

Is this really difficult? You might think it’s impossible because perhaps you rarely get referrals now. That’s what you know about. You might be getting referrals and not be aware of them or tracking them. It’s not difficult. You should aim all of your efforts at getting referrals because they’re usually better customers.

They don’t cost as much to get because you haven’t run advertising for them. They’re usually less sensitive to price because you’re coming to them recommended. They’re more likely to tell someone else about you because that’s how they found out about you.

They’re less likely to complain because they know their friend or family was satisfied with you and they probably should be. You don’t want any opportunity to pass by without asking for referrals.

There’s one company that came up with a simple way to grow their business. They used it to expand their business into a big operation in a short time. What they did was bend over backwards to make their customers happy, and people are always ready to give referrals while they’re still hot.

You don’t want to just give them one business card like most people do. Hand out five and let them pass them out. Do it when the customer is really hot and excited about your product or service. It’s easy for someone to misplace just one card, but it’s hard to lose all five business cards. This company’s been doing just this one technique and their business has skyrocketed. It’s very inexpensive.

You may already be handing out business cards, but I suggest you hand-write something on the back. Maybe an extra offer to add a bonus or some extra guarantee or some possible VIP treatment. Something to make that card special.

I will share two techniques with you; a Reward Referral Program and a Recognition Referral Program. You should use at least one of these. When a customer calls in to say what a great job you’ve done or how much they love your product, thank them and ask for a referral at that time because it’s very easy and you will get results.

A Reward Referral System is based on giving your clients or customers a monetary reward for referring someone.

You can also give away gifts like a set of knives, glasses, china. The monetary way is an easy way to develop this program. For every referral, you could give them €10. If they give you one to three, that’s €10 each. If they give you four, the 4th receives €20. It’s a way to get them to refer more.

You can create a whole program within your business. If you send out newsletters on a monthly or bi-monthly basis, you list the customers who give you referrals in that newsletter.

When you first walk into my chiropractor’s office, you see a big board listing all the names that referred people that month, and next to their name is the number of referrals. I don’t know whether he gives them a reward or not, but he should be.

Rewards that are monetary tend to be better than discounts because that’s kind of a conditional reward. You’re not giving them a gift, you’re saying, “Well, here’s a reward, but the only way you can get it is if you buy something else from me.” They do work, but in order of importance, the monetary award is better than the discount coupon.

Some frown on you “buying” customers that way. Some people claim it’s not ethical. So, you might consider gifts such as jewellery, movie tickets, dinner, massage, etc.

You can go out to local businesses and get free gifts from them. If these businesses are credible, they will give them to you for free so they can get someone to come to their business. It will actually cost you nothing. You could give them a choice of free tickets, free dinner, or a miniature golf game.

If you up the ante for more than one referral, they will keep referring because they will want the valuable gifts you are offering. Most people like to be recognised and see their name in print so they will appreciate the newsletter recognition.

The Recognition Referral Program is based on somehow recognising your clients and customers instead of paying them a monetary reward.

This is basically because people do like to be recognised. This can be cheaper for you if you’re not giving them money. Some of the recognition may require you to give them awards.

Here’s an example of what you can do. Every month or quarter you can have a lunch, barbecue or party in a clubhouse and have all your customers who have referred people. They could bring a guest of their choice. It’s important to just do this for special customers. Ones that have referred people – not everyone.

For the first referral, you give them a small reward, maybe a nice bottle of wine. For the second, a bigger reward. And so on. For the third you maybe some champagne, or a little gold pin. These rewards can be done for a surprisingly small amount of money.

You talk about some products and services you have at the lunch. You might have a speaker who can provide them with real good information. Have everyone fill out a form. It will generate more referrals.

For the price of a lunch, you get new customers, not to mention the prospects you will convert from the lunch who are guests. The overall expense is very slight compared to the business it can generate.

If you’re worried about the cost, remember that not everyone who referred people will show up at the lunch. You want to mention the barbeque in your newsletter, if you send one out, and what those who referred business received. This will encourage those people who aren’t referring anyone to you to start referring.

If you’d like some more ideas, including practical help to implement them, call 902 789 660 for an informal chat or visit EMTenerife.com!

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