In an effort to jump start small businesses – and remind them of the power of a single referral – John Jantsch (author of Duct Tape Marketing) launched Make a Referral Week in March of 2009. The goal of the event was simple: To provide 1,000 referrals to 1,000 deserving small businesses across the country.
Referral based businesses can either take a passive role or an active role in generating referrals. Those that take a passive role, create satisfied customers and spend their marketing time and dollars trying to get their message in front of as many potential customers as possible, then they are relegated to waiting and hoping that the phone rings.
Those that take an active role, do things a little differently.
1. Give awesome service that creates ‘raving fans’ instead of just satisfied customers. The only reason people talk about a service or product is because it was extremely good or extremely bad – make yours exceptional.
2. Make sure you thank your customers and ask them to tell your friends about you. Think back to the last time you were personally thanked for your business. It doesn’t happen often, so when it does we remember it.
3. Let your customers know up front that you will be asking for referrals later on. Don’t hit them cold – let them know that you are a referral based business and give them the chance to think about whom they want to refer.
4. Making giving a few referrals a condition of doing business with you. If you really want a business that runs on referrals than make it a rule that for people to do business with you, they have to give you referrals.
5. Ask for a referral when people buy from you (or even when they don’t). During the sale customers’ emotions are running high and they are happiest to give them. When customers don’t buy they usually feel a little awkward, and may feel obliged to help you out in a situation like this because they have just said ‘no’ to making a purchase from you.
YOUR CHALLENGE THIS WEEK: Consider your business approach to referrals and make the commitment to take an active strategy. And remember givers gain.
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