Q: What can we do
to win more referrals for our business? We see a lot of our
competitors getting customers this way, but we don't seem to
have the same luck.
A: When it comes to
winning referral business, luck plays a smaller role than you may
think. What matters most is cultivating current customers or
clients and creating an ongoing program to generate referrals from
"influencers."
Learn to Ask
Your first step is to communicate with your customers to let them
know you're open to receiving referrals and what you're
looking for. This may be done in person-when meeting or speaking
with them on the telephone-and it's best to be direct.
Let's say you write a newsletter for a division of a major
corporation. When meeting with a department head with whom you
regularly work, you could ask her to refer you to other divisions
within the company that might benefit from copywriting services. If
you have a good, solid working relationship and a happy client, she
may be willing to make introductions for you throughout the
company.
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But sometimes this kind of direct request is difficult for
entrepreneurs, and you may find you're more comfortable using
comment cards, surveys or other forms of written communication with
your customers to get referral names. A remodeling contractor, for
example, could send a follow-up letter at the end of each project
asking for feedback and include a section requesting referrals.
Depending on your type of business, you may find it advantageous to
offer an incentive to your current customers to provide referrals,
such as a discount or rebate, when their friends or family members
make a purchase or sign up for services.
Market to Influencers
Influencers are people who have direct contact with your primary
prospects and can send them your way. For instance, real estate
sales associates are major influencers for home inspectors, since
many prospective homeowners rely on them to recommend an inspector
before they make an offer on a home. Likewise, home security
companies that install smoke detectors and other equipment often
consider insurance agents major influencers, as they frequently
recommend installing such devices when reviewing new policies with
homeowners.
What types of businesses or individuals are major influencers
for your company? There may be thousands in your area-as in the
case of a home inspector who relies on referrals from real estate
sales associates-or just a handful. Often, marketing to them can be
as important as the campaigns you use to reach your prospective
customers or clients. That's why it's essential to set up a
program that includes a combination of sales contacts and marketing
tactics to keep referrals coming in year-round. Since referral
relationships are based on trust, it's vital to get to know
your key influencers one-on-one. So you'll need to identify
them, then call and set up meetings to get acquainted.
Once these relationships are initiated, it's important to
nurture and maintain them by staying in contact by telephone, in
person and through marketing tools such as direct mail, e-mail or
by fax. A great way help your influencers send business your way is
to supply them with marketing tools to use directly with your
prospects. The home inspector, for instance, could create a
"10 Point Inspection Checklist" with his company's
name and contact information for real estate sales associates to
use with prospective home buyers.
Set up a database with your referral list and schedule your
ongoing activity in your contact management program just as you
would contacts with prospective clients or customers. This will
keep your program on track and important contacts from falling by
the wayside.
The way you handle the referrals you receive will solidify your
relationships with your sources. So be sure to keep your
influencers in the loop with thank-you notes or calls and updates
on the satisfaction of each referral they send your way. With a
hard-working referral program in place, you won't have to rely
on luck to win the business your company needs.
Kim T. Gordon is an author, marketing coach and media
spokesperson-and one of the country's foremost experts on
entrepreneurial success. Her newest book, Bringing Home The Business, identifies the
30 "truths" that can make the difference between success
and failure in a homebased business. Kim offers one-on-one coaching
by telephone to motivated individuals, providing practical
marketing advice and budget-conscious strategies unique to your
business. To receive free how-to articles and advice, get
information on coaching and appearances, read a book excerpt, or
contact Kim, visit http://www.smallbusinessnow.com, a huge site
devoted exclusively to marketing your small business.
The opinions expressed in this column are
those of the author, not of Entrepreneur.com. All answers are
intended to be general in nature, without regard to specific
geographical areas or circumstances, and should only be relied upon
after consulting an appropriate expert, such as an attorney or
accountant.