Many businesspeople are uncomfortable asking for referrals, but their discomfort is unfounded. Asking for referrals is simple and vital to the success of your business. People often give what you ask for, and those who refer once can and will refer many more times if prompted to do so.Research shows that the average person has an immediate circle of influence of fifty-two other people. However, the average satisfied customer only tells three other people about the satisfactory experience. Getting that person to tell fifty instead of three takes action on your part. And that action needs to focus on giving appreciation and recognition.
When a satisfied customer sends someone to you, you should immediately thank them. This should include a phone call or thank you card at a bare minimum. A gift is usually appropriate and effective. The gift should be something you don’t normally sell (good examples are steaks, clocks, books, small electronic devices, etc.), and it should be different with each referral from the same source. The positive impact this can make is impressive.
Not sending thanks can have just as impressive of a negative effect. It could mean you don’t get any more referrals from that source.
One great way to stimulate more referrals is the second party gift certificate. As a way to encourage referrals, you give your regular customers a ten-dollar gift certificate that is redeemable only by a second party. They address and send it over to a friend. Your client gets to give a free gift certificate to a friend, and you get a referral. This works extremely well in just about any retail business, service business, restaurant, store, etc.
Then just wait for the referred customers to come in. And be sure to send some sort of recognition to your client who gave the referral.
-Gina
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