We enjoyed a great webinar today presented by Dawn Westerberg, titled: “When the Going Gets Tough, the Tough Get Referrals.” Dawn discussed the impact of referred customers on a business and how companies can ramp up their referrals and their profitability.
It’s a fact that referred leads (customers that come to you on the recommendation of a third-party) are better qualified, leading to a shorter sales cycle and increased profitability per lead. But why, Dawn asked, do companies NOT get more referrals? Because they don’t ASK for referrals.
To get more referrals, you have to set up a process in your business. Find out where your referrals come from. Is it your customers, your employees or friends, or maybe a Referral Alliance? A Referral Alliance is a group of companies that serves the same market but are not competing directly with each other.
Solicit referrals by setting the expectation of a referral at the beginning of your relationship with a customer. While you are “selling” them all of the benefits of working with you, let them know that your ultimate goal is that they become “raving fans” of your business who spread the word to others.
Then acknowledge those who refer to you. Thank them both prior to any actual transaction, and after the sale to the referred customer. Write them a note, or maybe give a gift or a donation in their name. Referral fees might work in some situations. What’s important is that your process is appropriate to your business, your culture, and your market.
Of course, you have to first make sure you have a business worth referring. Focus on attracting and keeping the “raving fan” customer with “repetitive excellence” in every aspect of your business.
These are just a few of the great points Dawn shared with us today. Join us for more events in our informative Summer Webinar Series.
Are you using referrals to grow your business?