Many companies claim that they get most of their business by word of mouth (referrals) but when asked if they are satisfied with current sales level the answer is often "no". Does that mean that the current customers are not satisfied with the business, product or service provided? Not necessarily, it might however mean that you are not asking enough.
Wait you think, why should I be asking if I want my current customers to be referring more business? Good question. Here are some of our thoughts on this matter:
Can you define your product or service in a way that is referable as well? While this might initially seem complicated, remember you are usually dealing with existing customers, so the old: "Do you know anyone else that could benefit from what we do?" can be a useful part of your "pitch". "Pitch?" we hear some of you asking yourselves, I do not want to "pitch", but if you want to get more traffic that is exactly what you have to do - keep it real, keep it sincere, dish it like you like to get it but do dish it!
The above point is important and we will repeat it, if you do not ask you will not receive or receive only a portion of the potential referrals that could come your way. Our list is not comprehensive, you may think up your own technique that you think will work better for your business and to that we say "great". Do not be shy to suggest it to us and in the meantime feel free to refer this article to your friends and colleagues.
Start with people who know, like and trust you. While you may have a lot of friends and family that fit this category, they are not necessarily the right people for your "product." So we suggest that you get people who know, like, trust and are existing customers. This is useful for expanding your network and for getting them to try expanded product or service lines.
When you meet new people you should routinely ask them what they do and how you can be of help to them. Then go out of your way to help them. What will happen next? Many (not all and do not let that discourage you) will ask you what you do and how they can help you. Please let them know what you are looking for - a strategic lead; more customers in your retail area; a wholesale lead... ask and you may receive.
Organize a "new client" appreciation event and get existing, new and potential customers into the same location. This mix of existing and potential customers will help break barriers and help the new people get more comfortable with your business - this is especially effective if your existing customers bring a friend that is a valid prospect.
Be proactive, when you have just put in that extra effort for the client it's a good time to ask for referrals.
Have a way that is easy to start the referral processing, whether it is a letter, note, social messaging, or one of our favorites an email to the prospect - that is personalized - we think that it is a great way to break barriers by stating that "Joe" suggested that you introduce your service to "Betty" and offer them something - sample, meeting, eBook or an event are some potential examples to further the relationship. WARNING: Do not offer them "free" or "money" that cheapens the relationship and it will be harder to have a proper relationship afterwards.
Even after the warning above, it is perfectly acceptable to give an incentive to your referrals and to your referring customer. Hats, t-shirts, pictures on walls, books and other rewards of this type can be worth more than cash. Keep in mind that some people make their living as brokers or "middlemen" so you should be prepared to break out the check book for them if they do have a positive impact on your business. Keep it honest, above board and creative so that the incentive keeps the relationship win/win and do not underestimate the power of a well timed thank you note (with or without a small gift attached).
Amaze your customers! Show them that you care by checking in on them, making sure that all is well, sending notes and small gifts and giving them that "special" treatment. It could come back to reward you tenfold. If your customers are happy let them know that the highest compliment that they can give you is by "referring a friend."
This above list is not complete and we may have left off the most important tactic. That tactic is you and your staff. They need to want more customers so that they welcome and encourage new referrals and not treat them like a bother, more work or worse. So smile and keep that smile contagious.
Mat Allard is a business consultant in Montreal, QC. For more information on planning your business and marketing strategies that work, please visit http://www.andionbusinesssolutions.com
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