One of the most often asked questions I receive about growing a business is “How can I get more referrals on a regular basis?”
Here is a simple Four Step Referral Formula that has worked well for my clients over the years. It doesn’t matter what industry you are in or what business model you use, it always works and produces great results.
First, start asking for referrals every day. Make it a part of doing business with you; it should be a part of your sales process. Ask every customer to refer three of their friends and family over the next 12 months to your business. You will find they will gladly do so. In many cases they will ask if they can refer more which you will accept with a grin.
Second, when you get the referral make sure you thank the person who sent them with a simple Thank You card. This hardly ever happens in the real world. Think about it, when was the last time you received a Thank You card from a business – if ever.
Third, when that person they referred to you buys (makes the cash register ring) do something nice for your customer that gave you the referral. Send them flowers, tickets to a show, green fees at the golf course, take them to dinner etc., whatever you can do to show your appreciation for their efforts.
Fourth, the Thank You card and the gift starts the Law of Reciprocity – which means they will feel obligated to do something nice for you (send more referrals) because you did something nice for them. So continue to follow the formula each and every time they send you a referral.
The Referral Formula is simple but it is not easy. It will enable you to create a referral-based business or practice. It works every time, you just need to be disciplined to keep it going and make it an integral part of your business.