A Powerful and
Inexpensive Way to Get More Clients
In this article I’m going to show you how to
get more clients by using a maneuver that nearly all of use periodically. It’s
a tactic that can land you lots of new customers without you spending a dime to
acquire them.
The problem with this tool is that it’s rarely
formalized, and as a result business owners significantly underachieve on
reaching their full potential.
The power of referral marketing
So what’s this powerful, inexpensive tactic
that offers such an amazing customer building opportunity for business owners?
Referrals.
Yep – referrals. Referrals are one of the most
powerful sales generating tools around. And all too often marketers fail
to reap the full rewards that referrals bring because they don’t have a
formalized, systematic process in place.
How referrals generate their power
Referrals get their power from the fact that
consumers are naturally inclined to be weary of advertisements and sales
pitches. To get around this weariness, we consumers instead resort to asking
our family and friends for advice. Since we tend to trust the advice of our
loved ones and assume that they have our best interests at heart, we tend to
act on their referrals.
And of course… seeking out advice is
significantly easier than doing our own research! Why not follow the advice
from someone that has your best interests at heart, and has already done the
research and experimenting for you?
Science proves it!
Studies show that:
- Consumers
are 200% more likely to pay attention to recommendations that come from
friends than from any other source
- According
to the Wharton School of Business, a referred customer has a lifetime
value that’s 16% higher than those of non-referred
customers
- 83% of
satisfied customers say that they’re willing to refer, while only 29% of
them actually do! (This means there’s a significant opportunity to for
you.)
So there you have it. Referrals results in
more customers, increases the value of customers to your business, and there’s
significant opportunities to increase the odds that your customers will refer
your business.
How to quickly double your referrals in 3
simple steps
Step #1: Ask.
Yes, really, just ask. Far too many business owners miss the boat on this easy,
yet critical step. And when you do ask, don’t just ask: “Hey, do you have
anyone in mind that you could refer my services to.” No – you’re way better
than that!
Instead, frame your question like this: “I
really enjoy doing business with you, and I’m sure you’re friends with other
people who share your high values and taste. Who do you know
that could benefit from my services?” Notice the difference? This subtle yet
powerful difference has a dramatically different impact on a client because it
already assumes that your client knows someone who’d benefit from your service.
And, it forces your client’s brain to start scanning around for people they know.
Your client almost can’t help BUT give you name.
Step #2: Get their contact
info. As soon as your client shares a name, ask them to spell their
name, then you repeat it back - twice. Spell then repeat twice. Spell then
repeat twice. Easy. Then immediately ask for their phone number. Since most
people have their mobile attached to them 24/7, chances are your client has
instant access to the referred person’s contact info (if your client doesn’t
have their phone number, ask if they can connect the two of you though email
for Facebook).
Step #3: Contact
the referral immediately and make a compelling offer. Don’t make the mistake
that 98% of other business owners make and sit on the referral for weeks. Call
them the same day. Follow-up immediately and make a compelling offer. The
longer you wait the less powerful your referral becomes and the less
likely you’ll ever reach out to them.
Stumped on what a compelling offer could be?
It’s much easier than you think. Examples:
- If you
sell homes, invite the prospect to a monthly lunch and learn where they
can get free food and advice on market and interest rate trends
- If
you’re a personal trainer, offer a free 20-minute health assessment. (A
good friend of mine offers “Go Giver” bootcamps to prospective clients
– check it out. This tactic works like
gangbusters for their business.)
- If
you’re a copywriter, offer to do a free assessment of the prospect’s
website homepage
- If
you’re a Search Engine Optimization (SEO) expert, offer to do a free
keyword search for your client and advise them on several improvements
they could make
This is list could go on and on. The point is:
ask for the referral, immediately get the referral’s contact name, and contact
the referral that same day with a compelling offer. That’s all you need to do!
Wrapping it up
If you follow these 3 steps, you will dramatically
increase the number of referrals that flood into your business. As opposed to
taking many weeks and months to land new business through online and offline
advertising, referrals can lead to new business in a day. And remember,
referred business = more frequent, and more profitable business.
Contributed by Dennis Paresa
Dennis protects business owners from
wasting their money on marketing that doesn’t work. He’s a marketing &
innovation consultant who helps business owners increase sales, become more
productive, and leave a legacy. Visit him on the web at www.dennisparesa.com.
