Are You Getting Referrals or Just Asking for Them?

Getting ReferralsGetting referrals are a critical part of any growing small business. But there is a big difference between asking for them and getting referrals from past customers. Both are important, both are involve different marketing strategies that need to be consistently practiced.

Getting Referrals

What they are: This is when a customer refers another prospect that wants to buy from you. It is the single most powerful form of marketing. Your company is there exactly when prospects are ready to buy. You instantly become a trusted source and jump to the front of the line to sell them your solution.

How to get them: Getting referrals only happens because of two actions. First, you offer an outstanding product or service and the customer is ecstatic about what they receive. As a result, they become and evangelist for your company and gladly refers other people. Secondly, you continue to stay in touch (market) to these former and current customers about the issues your company solves as an expert. This is critical because when someone approaches them with a problem your company deals with, they immediately refer you.

Asking for Referrals

What they are: This is when you ask a satisfied customer two questions:

“How likely are you to recommend

[PRODUCT / BRAND / SERVICE] to your friends or colleagues?”

“Who can you refer us to?”

How to get them. Some companies are concerned about asking customer for referrals. They think that there is pressure to be too “sale-sy” or the customer may say no. But remember, sometimes getting referrals means asking for them. The key is to only ask satisfied customers and to ask for referrals on a regular basis.  This means that each time a customer buys a product or service, find out if they are very satisfied. If they are, then ask for a referral. Do this consistently every quarter along with other content marketing, even if they are not a current customer.

Do you always practice both?

 

By | 2017-05-22T06:15:58+00:00 March 27th, 2017|Business, Marketing|Comments Off on Are You Getting Referrals or Just Asking for Them?

About the Author:

Barry Moltz gets business owners unstuck by unlocking their long forgotten potential. With decades of entrepreneurial experience in his own business ventures, he has discovered the formula to get stuck business owners and increasing their sales. Barry has founded and run small businesses with a great deal of success and failure for more than 20 years. After successfully selling his last operating business, Barry founded an angel investor group, an angel fund, and is a former advisory member of the board of the Angel Capital Education Foundation. His first book, “You Need to Be A Little Crazy: The Truth about Starting and Growing Your Business” describes the ups and downs and emotional trials of running a business. His second book, “Bounce! Failure, Resiliency and the Confidence to Achieve Your Next Great Success”, shows what it takes to come back and develop true business confidence. His third book, “BAM! Delivering Customer Service in a Self-Service World” shows how customer service is the new marketing. His fourth book, “Small Town Rules: How Small Business and Big Brands can Profit in a Connected Economy” shows how when every customer can talk to every other customer, it’s like living in a small town: Your reputation is everything! His fifth book, “How to Get Unstuck: 25 Ways to Get Your Business Growing Again” helps every small business owners move their company to the next level. Barry is a nationally recognized speaker on small business who has given hundreds of presentations to audiences ranging in size from 20 to 20,000. As a member of the Entrepreneurship Hall of Fame, he has appeared on many TV and radio programs such as CNBC’s The Big Idea, and MSNBC’s Your Business. He hosts his own radio show on AM560, and writes for American Express and Forbes.