Business By Referral
You will often hear people in business talk about the value of getting business by referral. These referrals may come from satisfied customers, from friends, from other business people that you know or in some cases people paid to refer customers to you such as in affiliate schemes.
Why Business by Referral
When potential customers are referred to you then you are far more likely to do business with them. This particularly applies when the referral comes from satisfied customers. The testimony of a satisfied customer and possibly the customer showing the work that you have done for them is very powerful. When a prospect knows that someone has been satisfied with your services this gives them great confidence to use you and statistics in many industries show that converting a referred prospect into a customer could be 80% or more.
Getting Business By Referral
Getting business by referral will often to some extent come naturally. Satisfied customers will often talk about your services but with time they may soon forget what you have done. There are a number of ways that you can increase the referrals that you get.
- You could ask for them directly. In this case though you may have to approach the prospects and say that you have been referred to them
- Keep in regular contact with the clients with letters, newsletters, flyers etc.
- With any mailing always include a few business cards and a line that your clients are welcome to pass the cards on to friends and colleagues.
- Network with businesses to build your reputation as business by referral from trusted businesses can be very successful.
- Thank clients that refer people to you. You may wish to include a gift. You want to encourage more referrals.
- Some companies have a paid referral scheme. Be aware though that if the prospect knows this is so it can greatly diminish the value of the referral.
Getting business by referral can take some some effort but it is really worthwhile. Take a look at your business and see what you can do to encourage people to give you business by referral.