Customers are your greatest marketing tool. When it comes to winning referral business you need to create an ongoing program to generate referrals from them.

Start with communicating with your customers to let them know you are open to receiving referrals. Ask at any ‘point of contact’ with your customers including in person, on the telephone, the back of business cards, or through your newsletter.

A great way to encourage referrals is to offer an incentive. Make sure the incentive is valuable to your customers. Remember they bought a certain item/service from you. Think of something that is complimentary to that item/service. The incentive will not only entice referrals but increase the value of being your customer.

When the customer finishes a purchase with you, the installation is finished, or your service is completed, ask the customer if anyone else they know needs the same product/service. A home improvement contractor, for example, could send a follow-up letter at the end of each project asking for feedback and include a section requesting referrals.

Customer service plays a heavy role in your referral business. If the customer has an issue but you resolve it quickly, and to the benefit of that customer, they will tell others about your assistance and refer you. When you have a good, solid working relationship and a happy client, they will tell others about you and your business. Your customers become your sales force and you get more business.

Add this statement to any request for referral marketing piece.

Do You Know How Many People You Know?

Your family, In-laws, Friends, Neighbors, Business Associates, local coffee shop acquaintances, Church members, Sports team and those on the other team (only if you’re a good sport!), Card Game players, and now online acquaintances. If any of your people need our products send them our way.

Affiliate and Reciprocal Referrals

Know what types of businesses are in your ‘business circle’. These affiliates have direct contact with your prospects and can send them your way. As an example: A home inspector is a major influencer on home improvement companies since people need to fix what the inspector has found defective. On the flip side a real estate agent is a major influencer for the home inspector since many homeowners ask the agent who they recommend to have the home inspected before they make an offer on it. Marketing to your influencers is necessary and is as important as the campaigns used to attract your own prospects. Identify your affiliates and call them to get acquainted. Build a relationship with them through sales and marketing tactics and see what you can do for them.

Identify businesses that can refer back and forth with your business. An example for reciprocal referrals is a heating company and replacement window business. A customer’s windows have condensation on them and ruins the frame. The window replacement company fixes the windows and recommends that the customer get an air-to-air exchanger and recommends the heating company. On the flip side the heating company installs an air-to-air exchanger in a house where the windows have had condensation on them and ruined the frames. They recommend the window replacement company. Build a circle of affiliate and reciprocal businesses and referrals will consistently come in.

For all business referrals create marketing materials that the influencer can give to the customers. The window replacement company could supply the heating company with a brochure on how replacement windows save energy. The heating company supplies the window company with information on why condensation forms on windows and how to alleviate it.

Keep your referral program on track by scheduling ongoing activity just as you would with your prospects and customers. Once you build a relationship with your business circle you do not want any of them to fall by the way-side. The way you handle the referrals you receive from the influencer will help solidify the relationship with them. Send out a thank-you note or make calls to them with updates on how you appreciate the referrals sent your way.

The best way to keep referrals coming in and creating prospects for you is to ask for them. You already have the source, ask them for the referral.

Toni Grundstrom is a freelance writer with emphasis in the Marketing field. She has worked for a professional legal association, government entity, and small businesses. With 17 years of experience I provide valuable content in all aspects of Marketing. To stay in contact with your customers and ‘business circle’ use the effective and low cost direct mail postcards.

Tags: Customer Referral, Getting Referrals, Referral Business, Referrals

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