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A common lament that I hear from business owners is: "Why don't I get more referrals when I provide such a great service (or product)?" Today's post addresses that question.
Be Bold
Until three years ago, I couldn't explain why people don't provide leads to businesses that they like or even love. Then, at a Word of Mouth Marketing Association conference I learned from a professor that 50% of all people need to be asked specifically for a referral in order to make one. Why? First, modern life is so busy that many people simply forget or feel too harried to make referrals. Second, when someone is happy with a product or service, he or she may assume that the business already has all the repeat and referred customers that it needs.
Be Confident
Many business owners hate asking for referrals because they are afraid of alienating their customers. But, it's absurd to assume that only sales sharks ask for referrals. After all, if you provide a quality product or service then you are doing your customers a huge favor by asking for referrals. Why? Because you're giving them an opportunity to provide their friends with something of value.
Be Specific
A few years ago, a friend of mine in the promotional products industry was frustrated that he wasn't getting referrals from one of his networking groups. I suggested that he start telling people about the specific client he desired as well as the title of the person who would buy his products. After a few months of repeating this desire and providing leads and valuable information to others in his group, he got the golden referral that helped him land his dream client. "Without being so specific, it never would have happened," he told me.
Be Sincere
Since relatively few people seek referrals, I always take note when I'm asked. A couple of years ago, my wife and I stayed at a fantastic B&B in Bend, Oregon. When I was checking out, I told the owner how much we enjoyed our stay complimenting him on the comfortable beds, amazing breakfasts, and friendly atmosphere. He thanked me and said, "I really appreciate what you're saying. It would mean a lot to me if you could share your thoughts about our place online since reviews are the best way for me to compete against the big hotels and their expensive advertising." Then, he proceeded to whip out his business card which had the URLs for Trip Advisor and Yahoo! Travel noted on the back. He said, "These are the two most important websites for getting people to book at our hotel, and I would really appreciate your review on either."
Of course, as any self-respecting word of mouth marketer would do, I asked whether positive online reviews made a big difference, and he asked me, "How did you find our place?" "Well, you were number one on TripAdvisor," I said. He smiled and told me that over 70% his business came through people who read about his property on TripAdvisor and a good chunk of guests also found him through Yahoo! Travel.
If referrals are important to the success of your business, I would love to hear what techniques are working for you to improve the quantity and quality of customers referred.
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