Customer referrals are like gold dust

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Make the most of referrals by having a program in place to pan for that gold.

• The easiest way to get referrals is to ask for them and to make it worthwhile for the customer. If you leave it to chance it may never happen. Put a controlled program in place to remind your customers that it is in their interests to help you.
• Give your customers some financial “inducement” to help you. Offer them free products or services. Or money off their normal service.
• You can use the charitable approach with anyone who feels they are being “bribed”, or where their company would not permit any payment to be made.

A Low-cost Action Plan for Getting Referrals

1. Decide what you could offer your customers as an incentive for referring names to you.

2. Design a simple response form that your customers can fill in. Allow space for five referred names. Each entry should include name, company, position, address and telephone number.

3. Send the form with a simple covering letter to all your customers. Remind them of the valued service you have performed for them. Stroke their ego a little by reminding them that, in their position, they must know lots of other business people. Explain what’s in it for them. Tell them what they’ll get for each name. Add an extra bonus if any name becomes a customer.

4. If this approach seems too impersonal, approach your customers whenever you meet them in person or speak to them on the telephone. As above, remind them of your own value and their business contacts. Share with them what you’re trying to achieve. Ask if they would help by giving you names of other business people who may be interested in what you have to offer. Again, explain what’s in it for them. You won’t often be refused, although five names and addresses may be too high a target for a face-to-face or telephone encounter.

5. Check that it’s alright to use your customer’s name when you contact the people whose names they’ve given you. If you’re feeling really bold and you’re with the customer in person, ask them to contact the top two names on the list, telling them you’ll be in touch on their recommendation.