5 Ways to Get More Referrals and Grow Your Business

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Referrals play a huge part in building your business. Close to three-quarters of consumers identify word-of-mouth as a key influence in their purchase decisions.

Yet most of us, while we are well aware of the power of word-of-month, leave it all to chance. Isn’t it time you got a bit more strategic?

Here’s a simple 5-step process that I guarantee will help you grow your business.

#1 Ask for the referral

It sounds obvious. But if you want to get more referrals, you need to ask.

Most business owners believe referrals will magically happen when customers are satisfied. Others feel awkward asking. You may feel you’re imposing on your customers, or you may be afraid to hear a customer say no.

If these attitudes describe you, it’s time to change.

#2 Create a referral system

The best way to ensure you always ask for a referral is to develop your own referral system. Rather than leaving referrals to chance, or letting shyness get in the way of growing your business, bake your system into your sales cycle.

Here’s how:

Referral system 1: The thank-you letter

Say you’re a contractor. Every time you complete a renovation, send a letter to the homeowner thanking them for their business. At the same time, let them know you are looking for new customers. Ask them to keep you in mind when neighbors or friends are planning to update a bathroom or modernize their kitchen.

Referral system 2: Referral cards

Referral cards are another option, especially if you see multiple customers in a day. This system works well for professionals, such as veterinarians or dentists.

Print a special business card to hand to customers at the end of every visit. One side has your business name and phone number along with a message of thanks. The other says: Our practice is still growing – we appreciate referrals.

Referral system 3: The invoice

On every invoice, mention that you appreciate your customer’s business, and are always looking for more customers like them. Explain you would appreciate a referral, and always reward referrals with token gifts of appreciation.

The token gift will depend on your business, but there’s always something you can offer – an iTunes or Starbucks gift card are simple ways of displaying your gratitude and cementing your connection.

#3 Develop a script

Here’s a typical referral request. Can you guess what’s wrong with it?

I’m really glad you’re happy with the business cards we created for you. Do you know anyone else who might need our design and printing services?

In response, the customer thinks for a moment and says: No one comes to mind right now but I’ll definitely think about it.

The question was too broad. When asking for a referral, be specific:

I’m really glad you’re happy with the business cards we created for you. I recall you mentioned you regularly attend a networking event every other Thursday. Is there anyone in that group who may need design and printing services 

Or try this approach:

I’m really glad you’re happy with the logo we created for you. We tend to work a lot with professionals and small businesses. Do you know anyone like that who might be interested in a new logo or a logo refresh?

See the difference?

So that you are always ready, develop a short script to use when asking for a referral in person. Think of ways to be specific with various types of customers. On the day you plan to ask for the referral, choose one, customize it, and practice saying it a few times before you meet.

#4 Get feedback

Incorporating a feedback mechanism into your sales cycle is a great way to get referrals … and also tells you which areas of your business need improvement.

Unhappy customers leave unfavourable reviews on social media networks, forums and blogs. It’s much better to provide them with an opportunity to tell you directly what was wrong so you can improve. Research shows customers with issues that are resolved quickly often turn into loyal customers  – even advocates. 

How do you use feedback for referrals? Just add a question at the bottom of your feedback form enquiring if they know someone else who could use your service. And don’t forget to ask if you can use their testimonial on your marketing materials.

#5 Find your centers of influence

In addition to customers, you should include centers of influence in your referral strategy.

Centers of influence are people who are influential with many others. They can have a big impact on your business, particularly if you leverage their power.

Typically, a center of influence works in a business related to your profession, offering a complementary service. For example, if you’re a personal trainer, your centers of influence include family doctors, dietitians, chiropractors, orthopedic doctors, local gym owners and physical therapists.

Do not leave referrals to chance

You cannot leave referrals to chance.

Make a point of asking every single customer for a referral. Don’t let your fear of rejection stop you. Develop a referral system and make it an integral part of your sales process.

As well, identify other business professionals who can help. Educate them about your business and build the relationship to ensure you are the first person who comes to mind when someone asks if they know anyone with your expertise.

Start today. You’ll soon be glad you did!

If you need help building your business, get in touch and speak with one of our digital advertising experts right now.

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