I think the reason business owners emotionally covet referrals is because they feel like they are free. We all like to get something for free – and perhaps a free customer is the best thing we could get for free.
Throughout the history of marketing the power of FREE has never been underestimated. It has launched countless businesses and it has fuelled advertising campaigns. Never forget how powerful it can be.
However Referrals are not really free.
Disappointing isn’t it? There is a massive investment required in order to get referrals. You need to get the customer in the first place, you need to make sure that they go from customer to raving fan, who tells their friends, family co-workers and their peers all about you and how great you are.
Then if all of that happens, we get a referral.
And because we didn’t do anything active it’s ‘free.’
If you believe that makes the referral free you probably believe that traffic that came from the search engines is free even though you are paying for an SEO company to get you up the ranks or you’ve invested hours, days and weeks of your own time doing that SEO. Finally, the time you’ve waited while you get up the ranks was also free.
Either way an investment is made. Getting back to referrals you’ve put all this work in to get the customer to the point they are ready to refer, then I would be doing everything in my power in order to get as many referrals as possible out of them.
They are and forever will be the source of customers that close the fastest and at a higher close rate, buy more, are less price resistant and I’m sure I have forgotten something, (so THERE’S MORE THAT REFERRALS CAN DO.)
The big problem our clients mention over and over is the idea that they want referrals but don’t have a way to ask for them without being pushy.
Referring should feel like the natural progression for your customer rather than feel like they are being interrogated for a list of the people who should be buying from you.
The hardest element to control is timing – when their friends, family and colleagues are ready for your services. The same as you can’t control when they are ready to buy.
It’s something we have figured out how to make work for you – so referrals become an integral lead source, your customers don’t feel intimidated in to giving those referrals and you don’t feel like a pushy sales person getting them out of your customers.