Aug 27, 2010

How to Get Customer Referrals

 
  • As you think about the other department managers in your organization, does one come to mind that has mentioned, or that you've noticed, is experiencing [insert similar symptoms] as you were?
  • You mentioned you belong to the local chapter of [insert professional association].  When you think about some of the people who have operations similar to yours, do you recall anyone mentioning [insert similar symptoms]?

"The only thing we are asking the customer or prospect to think about is an individual who shares their business and job characteristics and may be experiencing some or all of the indicators we just discussed with them," Thull says. "It is much easier for someone to bring to mind a referral based on a focused question rather than a question asking them to consider the entire universe."

Dig Deeper: How to Craft a Customer Survey

How to Get Customer Referrals: Following Up With a Thank You

Giving referrals is a very generous gesture on a customer's part and you need to take the time to thank the individual who provided it. "The appreciation should be unconditional, that is, thank them for the referral, not the sale," Thull says. "Sending a quick thank you note should not be dependent on or wait until the referral leads to a successful sale. I suggest a handwritten note, not an e-mail. Our fast paced world has gotten a little less personal. Providing a referral is a very personal gesture and it deserves a very personal acknowledgement."

Always remember to treat the referral with the value it deserves. The worst thing you can do is get a referral and let it slip through the cracks. You could lose a great opportunity, but worse, you will lose the respect of your customer or prospect who put their trust in you. "When showing respect by handling the lead professionally, you will gain respect from your new lead," Thull says. "You are starting at step one, building credibility and trust with the referred prospect. You should have a set process in place for how you will work with and communicate with them from the time you received their contact information on through the life of your relationship."

After you make a sale to this new customer, remember to send another thank you note to the customer who referred you. "The customer or prospect will be glad for you and feel good about being a part of your new customer's success," Thull says. "That good feeling, and keeping connected, will encourage more referrals and more business success."

Dig Deeper: Are Your Customers Loyal to You or Your Business?

Recommended Resources

How to Generate Customer Referrals

Marketing guru Seth Godin addresses this topic in his blog.

Evolving to True Customer Loyalty
White paper from Maritz about generating lasting customer loyalty.

Ten Steps to Generating More Referrals
Yahoo Small Business article on what you need to know to get customers to do word-of-mouth marketing.

 PREV  1 | 2