By Scott Manning
Manning Methods, LLC
Let’s begin by discussing this overdiscussed, under-utilized concept of building your client base. When asked, most small business owners say that the number one way they get new customers it through “word-of-mouth.” However, when asked, WHY, HOW, WHEN, etc. they have no answers – nothing – no system, no process, no method to capitalize on this “word-of-mouth” phenomenon.
Let me be bluntly honest – word of mouth is just of way of saying, “I’m terrible at marketing”, “I don’t get new clients,” “I don’t do any marketing,”–you get the idea. Anyone lame enough to say “word-of-mouth” is the number one way is way behind and stuck in stone-aged thinking. They are NOT implementing any sort of marketing method.
We’re not talking about word-of-mouth here; we’re talking about the third section of marketing to build your business – Generating Referrals. The differences are at least three-fold:
- Referrals are done intentionally and should be systematic.
- Referrals build and establish credibility; they pre-sell YOU.
- Referrals are another means of gaining prospects to qualify.
Why Referrals are a Gold Mine –
Referrals are the most ready to be “interested” people you will ever meet. Here’s why: These people have had LIVE testimony, in person, from the horse’s mouth, about You and your product or service. They have been pre-sold on the idea that IF they need what you offer, YOU’RE the place to go…notice this is the same thing we are establishing in all other efforts of marketing and our sales process – becoming the Premium Provider.
Understand that Referrals are no different than people who are touched by your marketing efforts and make an inquiry to you; they were intrigued and informed by a different means of MARKETING.
The point of this section is to get you to realize that GENERATING REFERRALS has the ability to dramatically impact your REVENUE – if you treat it as a means ofMARKETING – not luck or accident. Overnight success with referrals happens when you systematize your referral-generating mechanisms. What this does is gain you prospects – that you would typically be investing money to acquire – and aggressively persuade them to become your prospects or at best initial clients. Gaining referrals can – although this is not necessarily the only reason to seek referrals – get future clients at a much lower investment than other marketing sources!
Philosophy to follow for $$$ to your bottom-line
In every case, it is important for a company to build their prospect flow to meet or exceed their goals. Thus once you gain a strong client base you can possibly reach a point when referrals could provide a sufficient prospect flow without much additional marketing efforts. Although in most cases it is not smart or effective to depend on ONLY ONE source of prospects; when referrals become a consistent source, you will be fortunate in having less need for essential marketing expense and the ability to better control your new client volume. The point is the need to build your client base initially and gather referrals with ongoing systems, treating it just like marketing with a structured campaign. Keep in mind that it is much easier to gather referrals once you have an established client base, the more clients, the more referral sources available.
How to…
Referrals can come in all shapes and sizes. The predictability of your Referral Generating Systems is important to grow your business – getting referrals should be BUILT into your Sales Process, with additional opportunities and reasons to give referrals, BUT structured into the Sales Process – religiously.
Easy to use, easy to implement, easy to start, do it NOW…Follow these three steps to get the referral process going:
- Ask for Referrals at the end of your initial transaction – regardless of whether or not they buy.
- During your continual follow-ups (which we’ll cover later) strategically place Referral Requests.
- In order to “qualify” or be “eligible” for upgrade or higher level services or products, REQUIRE Referrals
ANYONE becoming a Referral should be treated as an interested, hand raising prospect – you are inviting them to “get involved” in the same thing that their friend is involved with. They get a sort of VIP treatment. In fact, all your prospects should receive and perceive that type of treatment.
To make all this happen you should…
Make giving Referrals a condition of doing business with you.
This is presented as a way to “keep your clientele the same type of people as whoever.” Or, some people say, “We are able to put marketing expense back into client service – thus please give us some referrals…” The best thing of course, is just to ask them and say that, “here’s what we do for you…and this is what you do for us…”
Reward your clients for Referrals.
This, although simple, is vitally important and really essential; you must Reward and Acknowledge your clients who give you referrals – we are systematizing this method, however. Anytime you receive a Referral, you should go hog wild, you are now indebted to your client (that’s the way you should / must feel). Send them a card at the least, flowers, gifts, money, etc. The best, most profitable businesses do this religiously and automatically and thus their business grows and grows because people are literally working for them to get them new business.
Create a culture of Referrals.
Have promotion-based Referral drives with prizes or reasons to do so. Make people feel important and a part of your success and business – you’re partners; ask for their help – everyone wants to help someone.
Follow these easy- to-implement steps for an overnight increase to your bottom-line
- Decide that Referrals are a condition of doing business with you.
- Implement Referral Avenues into your Sales Process.
- Encourage Referrals and Reward handsomely for them.
- Create ongoing promotional campaigns to get referrals.
- Track results and test your methods
– reap the rewards.
Scott Manning
President, Manning Methods,LLC
317-407-3382
sj@manningmethods.com
