In the A – Z of Marketing, R is for – Referrals

R could be about Reputation, Relationships or Regular Marketing. They are all important and I’ve written about all of them recently, so I decided to focus this blog on Referrals.

Referrals are a brilliant way to find new clients and grow your business. They are a very low cost way of marketing and usually have a high conversion rate. Some people advocate a ‘referral system’ that you plan out and follow. I’m sure that some of these systems work, but here’s my take on a more relaxed and equally effective take on getting referrals.

What’s the best way to get referrals? Give them!

If you turn up at networking meetings expecting to receive a steady flow of referrals, you’ll be disappointed. For someone to refer you to someone they know, first they have to trust you. After all, why would they recommend someone who might not do a good job? That would look bad on them. So to start getting referrals, start giving them. Listen to what help people are asking for and think about who you can put them in touch with. Who do you know who is looking for what they offer? Think about who you can introduce them to. This will help you build up a relationship with the people you meet, showing them that you’re trustworthy enough to be recommended.

When is the best time to ask for a referral? When someone says “Thank you?”

You’ve just had a great meeting with one of your clients, when you helped them with all sorts of issues. At the end of the meeting they say “Thank you so much for your help; I really appreciate it.” You could just gracefully reply “You’re very welcome.” Or you could add on – ” and who else do you know who might need the same sort of help?”

When someone has thanked you for your help, they are seeing you in the best light. This is when they will be the most open to thinking of other people to whom they could recommend you. It also works with prospects. I often spend time on the phone or at networking meetings providing free advice to people who aren’t my clients. When they say “Thank you” I ask who else they know who I can help. And it works!

What should you do with every referral? Say thank you properly!

A few months ago, Lucy contacted me, asking for some marketing help. She told me that Pete had recommended me to her. Pete is someone I’ve met at a few networking events, but we’ve not done any work together. I arranged to meet with Lucy and to thank Pete properly, I sent him a thank you card. I put a personal note in the card and posted it to him.

A few days later Pete phoned me to say thank you for the thank you card! He’d never received one before and was really touched by it. About a month later Pete called me and asked for my help with his marketing! We haven’t done the deal yet, but I know that Pete will continue to recommend me to people who he meets.

So, to generate a bigger flow of referrals into your business, give more, ask at the right time and then say thank you. Of course, keeping in touch with people helps keep you in their minds, which also helps. Combine all these tips and you’ll be able to grow your business through referrals.

How much of your new business comes through referrals? What do you do to increase that number?