Referrals are where it’s at today. They are new customers that call saying that so-and-so said, “You did a great job for my friend recently and I want the same” (product/service). Referrals are a great source of inexpensive growth that can come along at the right time, especially in today’s economy. Most companies know this but don’t know how to maximize it.

Let’s take a look at 3 main referral sources:

1. Satisfied customers tell the people they know.
2. Other business relationships or vendors refer their own customers.
3. Non-customers refer others based on advertisements (the word on the street).

These are great passive contributions to your business. Focused efforts to attract referral customers are lacking in businesses. However, there is no lack of effort to attract new customers, strangers if you will, in the form of radio, television, online, and print media. Referrals are less expensive, easier to reach, and lead to compound growth. In order to maximize this potential there must be active systems in place.

• Ask customers for 5 people they know that would find a great use in doing business with you.
• Give customers a little motivation or incentive to refer.
• Give them a gift card to their favorite store, a gift basket, or a percentage of the business they sent you.
• Write “Thank You” notes to them for every referral they send your way, even if they don’t buy.

It doesnt take much market research to realize that referrals are the most porfitable and reliable way to grow your business consistently. Start doing this with just 10% of the customers you are in front of and you will see a big change in the coming months. Do it with 100% and your business and life will change forever.

This entry was posted on Friday, January 2nd, 2009 at 6:02 am and is filed under Marketing, Sales. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.