The Business Bullet — By Andrew Griffiths

17 Mar 2012

If you want a lot more referrals, you need to read this.

5 Smart Ways to Get Referrals Flowing

If your business doesn’t get many word of mouth referrals, I hate to say it, but you are probably doing something(s) wrong. It might be lousy service, it might be that your products are too expensive or it might be a bad reputation. A tough love start to this Business Bullet I know, but it’s true.

On the more positive side, let’s assume you run a great business, you are already getting quite a few referrals, but you want a lot more. What are some simple strategies to help out?

Here are five of my all time favourite ideas for generating referrals. They have worked for me for over 25 years and they apply equally today as they did when I bought my first business.

1. BE A GREAT REFERRER OF OTHER PEOPLE’S BUSINESSES.

Look at the list of suppliers you deal with. Do you actively refer people to them? If not, why not? Today, business is about reciprocity and to put it very bluntly, if you want more referrals, give more referrals.

Some people are great at it, some are not. If there are people you have been working with for years and you don’t refer potential customers to them on a regular basis, you need to address this straight away.

It isn’t just about your suppliers , it is about the places where you eat out, the people who take care of your car, the next door neighbour who owns a handy man business and so on. You need to always be looking for ways to refer other people’s businesses.

2. HELP PEOPLE TO REFER CUSTOMERS TO YOU.

One of the biggest business mistakes we can all make is assuming people know what we do and what our business offers. The reality is most people know a bit about our business, but not a lot.

It is our job to educate potential referrers to let them know not only what products or services we offer, but also what our ideal customers look like. The more specific you can be about this, the better quality referrals you will  receive.

Whenever you introduce a new product or service, tell everyone and keep telling them. Let them know who this new product or service is best suited for.

3. TAKE THE RISK OUT OF BEING REFERRED.

The reason many people don’t refer others is simply because they don’t want to take responsibility or be blamed if the business they are referring buggers up in some shape or form.

Of course, this can happen as it is out of our control, but to keep getting referrals, you have to take the risk out of it for them.

This means, if you get a referral treat it as gold. It is new potential business that has probably cost you nothing to get. Deliver on every expectation and ask the new customer to report back to the business who referred them just to let them know they are being looked after.

Our first referral to a business is always the toughest, the more often we refer and get great feedback the more often we will refer new business.

4. REFER AT LEAST ONE OTHER BUSINESS EVERY SINGLE DAY.

Referring people is like going to the gym – do it once a year and you will pay the price. Always look for ways to drive business to others, and rest assured the more you refer the more you will be referred.

The more you make this a habit the easier it will become and soon you will find yourself referring people all day long.

5. LAST BUT NOT LEAST, GET GOOD AT ASKING FOR REFERRALS

All of the above is a waste of time if you aren’t good at asking for referrals in the first place. I have written about this a lot in my books and blog posts, because it is the stumbling block for most people. So here is my simple three step process:

  • Step One – ask the customer if they are happy with what you have provided.
  • Step Two – thank them for their business and let them know how great it would be to have another 50 quality customers just like them.
  • Step Three – tell them you love your business and you are working hard to grow it and you would really appreciate their help by recommending it to their family, friends and colleagues. The wording here is quite specific – follow it and you will get really rewarding results. The more you use this system, the easier the words will flow.

OK, good luck generating those word of mouth referrals. There is a pile of business out there, you just have to be better at chasing it than your competitors.

Until next time,
Andrew

PS Anyone in Sydney looking to see some quality speakers talking about business efficiency (which translates into more loot for you, less time working in your business) – you might be interested in this event (see attached link) on the 28th March. My good friend Mr Robert Gerrish (from Flying Solo fame and glory)  will ensure that it is a lively event and there are some other great speakers involved. Whichever way you look at it, this is a good investment of time. To find out more click on the following link – MAKE IT COUNT EVENT

PPS There are still a couple of spaces left in my next Professional Presenters Bootcamp in Cairns – to find out more or to book, follow this link – FIND OUT MORE

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  1. Some sound advice given. I am encouraging others to read them and hope they will.

    Posted by Fay Gordon on 3 April 2015

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