Advertising is one of the biggest costs in any business.
The cost of acquiring a customer is more expensive than keeping a customer so when you apply the right strategy you can lower that cost by having others become your raving fans.
You will literally have a flowing stream of endless referrals lined up at your door with credit card in hand.
A business dream come true to have hungry buyers waiting for you to serve them.
The psychology of getting endless referrals
Who do people like to buy from? Others that they know, like and trust.
Where it all begins is when you are first introduced to your new potential customer.
How many times do you get to make a first impression? Exactly, one!
Would you or anyone for that matter have a business without the customers? I know, silly question.
Of course you would have no business.
Then why is it that most businesses treat their customers like they are the only game in town and only offer mediocre service after the purchase?
Does this make any sense?
Your customers are gold and gold is referred to as a precious metal.
Common knowledge does not always mean that common sense will be applied.
It’s obvious when you see how you are treated at many businesses.
How many people do you refer to a business that price gouges you, treats you badly or gives very poor service? That’s right, a big fat 0.
Scientific studies have been done and when people have a good experience they tell 3 others.
When they have had a bad experience they tell 10 others.
So, what makes sense in how you should treat your customer. Obvious, I know.
When you factor in that virtually everyone today has a network on social media with hundreds or thousands of people, what would you want them saying about your business?
Common sense, right! Treating your customer right is not only the smart thing to do, it’s the right thing to do!
How to get referrals?
One of the easiest ways to get referrals is using a sophisticated method I refer to as “ASK”.
When you have created great value for someone and great service do you think they would like to have their friends receive the same type of service? Absolutely!
What blows me away is why more sales people and business owners don’t ask their happy customers,”Who do you know would like the same quality of service you just received?” ASK!
Become a great conversation starter and when the opportunity presents itself, you can offer your services.
Do you play golf, go to business functions or attend social events?
Unless you live in a cave I’m sure you are socially active.
Don’t be intrusive with your business card in hand waving it around, just politely ask people, “Who do you know?”
If you end up talking to total strangers the easy way to not make them feel imposed upon is ask, “Do you know anyone who…?”
You will get referrals if you approach people in a respectful manner.
You are always guaranteed what the answer will be if you don’t ASK, no!
Do you want to learn how to be a more effective communicator?
Do you want to grow your business with endless referrals online or offline?
A great technique to get direct referrals
What happens when you meet someone for the first time (business)?
Usually it’s a race to see who is going to get the first word out and they they are off to the races about who they are, what they do and how great they are!
How does that make you feel?
You feel like you are listening to a live TV commercial that you can’t click off!
Now let’s flip that around (although this is rare) and you meet someone and the first thing they do is ask a question, “About you”.
You answer and they ask another question and they continue to ask questions about you, your family and your business.
What is everybody’s favorite subject, you guessed it, themselves!
By you asking questions you have switched the normal situation from being all about you to it being all about them.
If you are interested in others and show you care (you must be genuine) then they will find you interesting.
You will stand out because this is not normal.
Treating people with this approach will often get you direct referrals because you made them feel special.
Always remember the ASK for direct referrals question is “Who do you know?” This type of question is important because it is referred to as an open ended question versus a close ended question “Do you know anyone that…?” which is a yes or no answer.
Direct referrals with strangers need open ended questions.
The art of getting a customer referral online
Too many people see the process of building relationships with their customers online as different than offline.
You are making a connection with another human being.
It’s just communicated differently.
You create value for them to attract them to you.
You keep giving value.
You help them find solutions to their problems.
You serve them and give them a great customer experience.
Word of mouth is as powerful online if not more powerful because of social media networks to get a customer referral .
No one gives a referral for crappy products and crappy service.
The world is moving online at warp speed for both it’s research and purchases.
Another great way to get a customer referral is to have your happy customers give them to you in exchange for a discount or bonus.
Why leave it to chance that they will refer it, offer them something.
It costs you less to acquire a customer and you have a 97% chance that they will buy based on a recommendation of someone that they know.
It’s a no brainer.
You are generally giving up less to get a new customer from a direct referral than it would to acquire a new customer from advertising.
You might consider this a paid referral but once you have that customer the key is to treat them like GOLD so they keep on buying your stuff.
Summary of do’s and dont’s to create endless referrals…
1) Ask questions?
2) Create value?
3) Give great customer service.
4) Listen to them (your customer).
5) Offer incentives to get referrals.
6) Don’t talk about yourself and how great you are. They don’t care!
7) Don’t launch into a sales pitch when you first meet someone outside your business.
8) Build relationships instead of doing transactions.
9) Always be serving.
Just ask is the first place to begin getting endless referrals.
Another offline place to get endless Referrals is through your Local BNI. I recommend ANYONE who wants to grow their business by referral to join a local BNI chapter.
Local Business – Global Network®
With over 180,000 members worldwide, BNI is the largest business networking organization in the world. Last year alone, BNI generated 6.6 million referrals resulting in $8.6 billion dollars’ worth of business for its members. We offer members the opportunity to share ideas, contacts and most importantly, business referrals.
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