In last week’s blog we looked at the problem that many small businesses face – the cost of marketing. Yes, it can be expensive, especially if you get it wrong. I shared a number of marketing tactics that you can use, that don’t cost much more than your time – click here to see that post if you missed it.

When you provide a service, such as coaching, consulting or training, one really good marketing tool that you can use, that doesn’t cost you much, is referrals. When someone likes the work you do for them, they are more likely to recommend you to someone else who needs the same sort of help. Even if someone you know hasn’t used your services, they can still recommend you to other people. So how can you generate more referrals into your business? Here’s how we do it:

Networking – when I go networking, I spend most of my time asking questions of the other people I meet, to find out about their businesses and the issues they’re struggling with. If they have a marketing-related problem, I will give them whatever advice I can, to help them solve the problem. I don’t insist on them becoming a client before I will give them advice. If the problem has nothing to do with marketing, I will look to connect them with whoever can help them. Networking should be about building relationships with people you meet. In this way, I regularly receive referrals from people I’ve met at networking events, with whom I’ve started to build up a relationship. They like and trust me, so are happy to recommend me to other people.

Customer Service – the best way to encourage referrals is by giving your clients the best possible service that you can. According to Bob Burg, in his book, The Go-Giver, the first law of success is the Law of Value, which says “Your true worth is determined by how much more you give in value than you take in payment.” It’s about going the extra mile and delivering more than your clients expect. Look after them the absolute best that you can, and they will reward you with referrals.

Thank you cards – every time I receive a referral to a potential client, I send a hand written thank you card to the person who has recommended me. A quick text or email would be easier, but I think that spending the time on writing and posting a card is worth it. You could make a phone call, but a card is longer lasting! What has really surprised me about sending thank you cards is the number of people who phone to thank me for sending them a card! That all helps to strengthen the relationship and usually encourages more referrals to flow.

Send them something – I send out quite a few thank you cards for referrals. They don’t all turn into work, but when they do, I send the referrer something bigger and better than just a card. In the past I’ve sent garden centre vouchers (to the client who loves gardening), spa vouchers (to the person who loves having massages), as well as flowers and champagne to the people who love flowers and champagne. Make it personal and make it appropriate. Don’t send biscuits to someone who is on a diet!

You might have noticed that most of the activities listed above will actually cost you something. But I believe that the cost of a card and a stamp, or the price of a thank you present, are really worth it, and should be part of your marketing budget.

In next week’s blog we’ll look at another marketing tool that you can use, to generate even more referrals. This one really doesn’t cost you any more than your time (unless you decide to pay for the premium version.) This tool is LinkedIn, and combines much of what I’ve written about here, in terms of (online) networking, building relationships and effective ways of thanking people.

Don’t want to wait until next week? Get in touch by calling me on 01635 578 500 or by clicking here to email me and we can look at how you can start using LinkedIn more effectively.