Encourage Referrals
Referrals and word of mouth are both great ways to build your business. Do a great job, and you will find that customers and others suggest you to their friends and associates. However, there are also steps you can take to encourage others to talk about you and send business your way.
Always ask customers for referrals. Do it when you close the sale, when you deliver or install a purchase, or in a follow-up call after a sale. Although a happy customer is willing to offer referrals, many will not think to do so or will not follow up. Ask, and they will.
Make it easy to refer. If you send a monthly invoice, include a referral form. The customer simply lists people who might be interested in your product or service, then drops the card in the payment envelope.
Some customers may not want to give their friends’ names and phone numbers to you; however, they will be comfortable giving your information to their friends. Give them business cards, brochures and other materials to hand out.
Offer rewards for referrals. It might be a gift, a discount on a future purchase, a free product or service, or something else that referrers will value. Let customers know what they will get when they send business to you.
Online merchants use affiliate programs to encourage customers to recommend them to others. When an affiliate’s Web site sends a visitor to your site, and that visitor makes a purchase, the affiliate receives a commission on the sale. There are many software programs available to track affiliate sales automatically.
Ask your vendors for leads. They have a vested interest in your success, because if you get more business, they get more business.
Another referral source can be your professional associates. I have been involved in the publishing industry for years, and I often get calls from writers looking for editors, cover designers and others to help them publish their work. I am always happy to recommend professionals I know and respect. Get involved in associations and networking groups and let others know what you can do.
And don’t forget your competitors. That’s right, the competition can be a source of referrals. You may cover for each other during vacations or help out when one of you has more business than he can handle. Or, it may be that you have different strengths. You each can do what you do best, and farm out the tasks for which the other is better suited. Forming alliances with your competition can be positive for you, for them and for customers.
When you get a new customer through a referral, send a thank you note to the referrer. Hand write a post card or note, or send a greeting card with a thank you message. Include an advertising specialty such as a glass or mug, tote bag, note pad or sticky notes, or a nice pen. These are inexpensive but thoughtful ways to say “Thank you for the business!”
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