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5 Strategies for Generating Quality Referrals
Any business owner knows, leads are the lifeblood of your business. After all, while some clients are repeat buyers, others may only buy your product once or use your service for a limited time. But both current and previous customers can still help boost sales — by providing referrals.
A high-quality referral can be pure gold. Referrals offer “social proof" that you are, in fact, everything you say you are. But many entrepreneurs hesitate to ask for referrals, fearing that it might make them look pushy. The good news is that most satisfied clients are more than happy to pass on a good word. Here are five simple but effective ways to seek referrals.
1. Catch them at the right time.
And when's that? Directly after you have just wrapped up a successful project or delivered a solution to a thorny problem. Not only is the customer still basking in the glow of a job well done, but the details of your service will be fresh in their mind. That's the time to ask them if they know of anyone else who might benefit from your service, and if they would help make the introduction.
2. Ask for a “triangle" referral.
When you ask a customer for a referral, they may just pass along the name and contact info of someone they think may need your product or service. While this is helpful, there's a much more effective approach: the "triangle" referral. With this method, your satisfied customer sends an email directly to the person they're referring to you and copies you on the email. So, for example, your customer's email could say something like “Hi, Sophie. I know you'd mentioned you were potentially looking for a new graphic designer. I just completed a project with Brent and was really pleased with his work. I wanted to put the two of you in touch." While you can't specifically write that perfect email for your customer, you can indicate to them that connecting the two of you would be ideal, providing a “warmer" introduction than you contacting the referral cold.
What's the best time to ask a customer for a referral? Right after you wrap up a successful project or deliver a solution to a thorny problem.
3. Hold a referral event.
Thanking your customers by inviting them to an after-hours event or breakfast is a great way to nurture your relationship. Even better is asking them to bring one of their own clients, so everyone can benefit from meeting more people. The secret to success is making the event compelling enough to inspire them to attend. So you might invite an up-and-coming winemaker to sample their newest release, or host an industry thought-leader.
4. Join a networking group.
Networking groups have a variety of constructs, but you'll find the most high-quality referrals come when the primary purpose is to trade leads among people in different industries. Usually these groups meet every other week, and one of the requirements for membership is that all are committed to providing referrals. For the best results, be specific about the work you do and the type of clients who will benefit most from your product or service. Be sure to include details about your ideal referrals, such as the size of their business and whether or not they need to be local. The more specific you are, the easier it is for your fellow members to say “Oh! I know someone!"
5. Seek case studies or testimonials for your website.
Since most sales research starts on the web, case studies are increasingly important for referrals. The most interesting testimonials are full of details. For example, which referral would resonate with you more? Someone who said, “Paul had great ideas for our advertising campaign and it was very successful." Or “Anne listened to our specific challenges and designed an ad campaign that reached our niche target audience. She delivered materials on time and under budget and helped us achieve a 10% rise in sales last quarter." Wow! I'm definitely hiring Anne, aren't you?
However your customers provide referrals, be sure to thank them afterward. Everyone likes to feel appreciated — and it can keep the referral spigot open.
Important Disclosure Information
This content is general in nature and does not constitute legal, tax, accounting, financial or investment advice. You are encouraged to consult with competent legal, tax, accounting, financial or investment professionals based on your specific circumstances. We do not make any warranties as to accuracy or completeness of this information, do not endorse any third-party companies, products, or services described here, and take no liability for your use of this information. Diversification does not ensure against loss.
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