One of the best ways to survive in business is to create a list of reliable customers. The best way you can do this is to seek referrals from current clients. Any referral they can give is like a pre-approved recommendation - both for you and the referred person.
But how do you go about asking for referrals without sounding too desperate and pushy? Here are a few steps that could get you going on your quest.
Step 1 - Create a referral target market. Before asking for referrals, you must at least have an idea as to the type of clients you seek. This would be based on their geographical location, demographics, preferences and niche. Create a list of companies or individuals whom you think you can ask referrals from. This could be members of a network, groups on LinkedIn, Fans on Facebook, Followers on Twitter, or local businesses with whom you are in good terms with. The essential step is to at least get a general list going. Be thorough.
Step 2 - Identify your ideal referral client. The truth is, you may get referrals but some of these may not be the type of clients you want. In order to receive high quality referrals, you must be discerning about the type of client or business who makes the referral. Not everybody anyone recommends may be good for your business, so be choosy also, if you want the best results.
Step 3 - Create your best referral message. Sometimes, it's not just the business that convinces a company to seek your services, it may also be the content of your message which gets them to try your product or service out. The best salesmen are the ones who can convince a fish to buy water - if you're this convincing, or if your message is excellent, people will be willing to give your business a try. The trick is how to get one of their feet inside your door.
Step 4 - Design a referral benefit system for those who will give you referrals. Let's face it - not everyone will want to give you referrals if they will not have any form of benefit from it. So when you meet with a potential referral source, you can substantially increase the number and quality of referrals if you are able to outline a few things, like: who makes a great referral, what's in it for them, how to refer you, and how you intend to reward the one who referred you. It could be in the form of discounts, return referrals or a mutual benefit system you can both agree on.
Step 5 - Outline your referral lead offer system. This is what will motivate others to want to refer you. As first mentioned, you have to make it worthwhile for those who will refer people to you. This is the heart and soul of your campaign.
Step 6 - Create a referral conversion strategy. What do you intend to do when that phone rings? You may get referral leads, but how will you convince them to be your actual clients? Your strategy must be carefully mapped out and planned. If you have staff, keep them informed on what to do. A referral is wasted if you cannot convince them to be a customer.
Step 7 - Formulate a referral follow-up strategy. You need to make your referral go full circle. In case a referred person or business does not immediately become a client, what do you intend to do to make sure they don't forget about you? If they do become your clients, you must also devise a system of reporting back to the person who referred this client to you of any progress or business that resulted from his referral. This is 2-fold: you not only keep him updated, you also encourage him to refer you to others, since his first referral was so successful and fruitful - both for you and for him (because he will get some reward, right?). Also, you must formulate a plan on how can you convince your new referrals to refer you again to their contacts.
This way, the stream of transactions does not stop, and everyone ends up happy and off well in the end. It takes sheer determination for any endeavour to become fruitful. Be positive and hardworking, and everything will pay off.
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Michael Griffiths is the CEO and Founder of My Small Business Marketing Guru. Helping small business owners generate more leads, clients and increase profits with relationship based marketing strategies. We invite you to get your free black mask marketing resources to help you business grow today, when you visit http://www.mysmallbusinessmarketingguru.com.au
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