We have all heard the old saying, "You have to give to get." This principle remains valid for getting referrals for your business. I am not sure about your business, but at Rhythm Systems we live for referrals, and it generates a large percentage of the new business we receive.
There is nothing better than a happy customer referring you to one of their business colleagues or friends. The thing about referrals is they don’t always happen automagically! Sure, you will get the occasional referral from an existing customer without asking, but you will receive even more if you put a strategy and program in place.
We all know that hope is not a very good business strategy, so how do you go about getting more referrals? According to Nielson, 92% of consumers trust referrals from people they know.
“A Marketshare report notes that word-of-mouth can improve marketing effectiveness by as much as 54%. Businesses using referrals as part of their regular marketing see conversion rates up to 70% higher, and they also report a 69% faster close time.”
A referral may be the highest compliment a customer can give your business. That said, we must treat referrals with the utmost respect and professionalism. It is essential to make it easy for the prospect to say no if the fit is not right. But you can always ask if they know of someone else that might be a good fit and while you are at it, ask them how you can help them build their business and what type of referrals would be best for them. I genuinely believe that every relationship is powerful if we look for ways to help each other and nurture it over time.
Next time I will share the elements of our referral strategy that I helped develop.
Until then, happy selling and working on getting those referrals!
Yours in growth, Alan
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