Gaining Referrals Almost Effortlessly

In one sentence, one thought, and in less than one minute, I can show you how to double your customers right now, for free.

Got your attention? Here’s how – ask each customer you have for one customer referral. Just one. Not their neighborhood, not their family tree, just one preferably financially solvent customer.

Could this really be hard? Okay – you’re thinking – “I’d be lucky if one out of 5 actually did it!” Well, hardy, har-har ‘cause you just added 20% more customers on your “low” estimate. And if “just” one out of five of those did the same thing? You’ve just tacked on 24% more customers. Done with little or no cost, low effort and big returns. Just the way mega-successful businesses do it.

The simplicity of the above, and the undeniability therein, causes most contractors to completely, absolutely, and shamelessly ignore the huge numbers in gaining and encouraging referrals.

This oversight opens the door for you – the now enlightened contractor – to a path of customer acquisition unfettered by mountains of media money, “proving yourself” to skeptical first-timers, or being plagued with having to be the “low ball” bid.

Why? Because referrals are like “one of the family.” It’s “Joe says you’re okay and I know Joe, so come on over.” That’s a darn sight better than, “I saw your number in the Yellow Pages and I’m getting 53 bids and if you’ll fax me your business license and personality profile I MIGHT consider having you come over and give me your BEST PRICE if I decide you are worth anything at all.”

You see, referrals come with none of that baggage.

It’s not only important to keep customers for the return business they bring themselves, but also for the additional customers they can draw to your company. There is no better way to gain customers than through your customers’ referrals.

Satisfied customers make up your strongest sales force. Product or service claims from them have instant credibility in the eyes of a prospect.

When choosing a service provider, consumers are six times more likely to rely on the recommendation of friends and family than on advertising.

What’s In It for the Customer?

You know why you want customers to give you referrals, but, you may be asking, what’s in it for them? Sales Training expert David Holt says that there are four main reasons your customers want to give you referrals:

1.       The hero factor. Your referral source has an opportunity to be a real hero to one or more friends or colleagues. If working with you truly has been a pleasure, he or she can “look good” by helping a friend or colleague learn about you. Remember – people prefer to find service providers through recommendations.

2.       It brings them better service. Your customers know that if they give you referrals it will give you added incentive to provide them with even better service. Even though you attempt to give all your customers the best service possible, isn’t it natural that you will run a little faster and jump a little higher for the customers who give you referrals?

3.       They like you and trust you. If people like you and trust you, they probably want to help you. This is the most powerful reason! If you’ve been serving them well, most customers get great pleasure from helping you become more successful. If you share your vision for success, they will enjoy seeing your success by helping you with referrals.

4.       They know that keeping you in business helps them! Help your customers see the benefits of your staying in business – so you can help them as their needs change and be there to cover their warranties and continued maintenance.

Your customer may also respond to incentives you offer, such as a $25 discount on their new system for each name offered. In fact, the “Get More than You Pay For” form in your Sales Power Pack offers a “referral partner” checkbox that gives the salesperson the discretion to offer added incentive during a sales call.

Just remember, even if you do offer incentives, don’t overlook the fact that what you’re really offering are great products with great service from a great company. That’s the true incentive for referrals.

Readers can receive the no-cost report, “Endless Referrals” and a complimentary subscription to the Sales&Marketing Insider by sending a polite request to freestuff@hudsonink.com.