Earn.com Blog

Getting referrals from satisfied customers has always been one of the best ways to expand your marketing reach. Now, with our society more connected than ever through social networking and the Internet, it’s easy for customers to spread the word—making referrals even more valuable.

There are different types of referrals, from the low-value (a customer who gives you someone’s name and e-mail or phone number) to the mid-range (a customer who talks to the referral about your business) to the high-value (a customer who facilitates a sale by arranging a meeting or bringing the referral in your door). Different types of referrals work for different businesses. Once you’ve decided what kind/s of referrals you’re seeking, here are some ways to get them:

Explain that you expect referrals. If your business involves long-term projects, like consulting or financial advising, discuss referrals in your initial meeting with a new client. Mention that part of your process is getting referrals, and ask whether they’d be willing to give you three referrals if they’re happy with your work.

Offer an incentive. Give the customer something in exchange for a referral. This could range from a $10 credit when the referral buys something to a percentage discount on the person’s next purchase. Make what you offer commensurate with what you sell, the amount of effort the customer puts into the referral, and the amount the referral spends.

Choose the right time. Ask for referrals when the customer is in a good mood. For example, an e-commerce company could include a referral form in each product shipment. Customers eagerly opening their packages will be in a receptive mood to refer friends. Include a postage-paid postcard they can complete and drop in the mail. Retailers could include referral cards in the shopping bag; service businesses could include them with invoices.

Make it easy. Don’t make customers work to refer people to you. Develop an e-mail template they can forward to friends; give them business cards they can pass on to colleagues; or create a referral section on your website where clients can fill in a few e-mails and click.

Just because someone has been referred to you, don’t assume you’ve got an easy sale. Introduce yourself via a phone call, e-mail, or letter, but use a soft sell. Offer them something free, such as a white paper or booklet, a discount on their first service, or a free appetizer at your restaurant.

Of course, none of these strategies will work if your business doesn’t provide outstanding products and service. Perhaps the best advice about referrals is this: deserve them, and customers will rush to provide them.

David Gass
Founder, Business Credit Services, Inc.
Earn.com Expert Advisor

Tags: business expansion, business growth, recommendations, referrals