4 Steps To Building a Referral Based Business

Step 1. Who

You need to decide who your ideal customer is, and whom you actually want referred to your business. Time to go through your current customer list and your ideal customer criteria – don’t get any old referrals and make sure you can tell people exactly what you are looking for.

Step 2. Money

Work out how much each and every one of your current customers has cost you… and how much they have made you. Decide how much you are willing to invest to buy your new customers.

Step 3. Look After What You Got…

Be sure to keep in touch with your customers at least every 3 months. Teach your customers why it is good for them to give you referrals. Give awesome service that created “delighted advocates” instead of satisfied customers.

Make sure you thank your customers and ask them to tell their friends about you. Just be daring… ask people when they buy from you or even, the people who don’t buy from you – sometimes people who don’t buy from you but of whom you helped make the right decision for them can give you great referrals. I once had a business go from ok to success based on referrals from non-buyers; they always gave 3 or 4 great buyers… and even warmed them up for me. They were calling me!

Let your customers know you will be asking for referrals later on. Make giving you a few referrals a condition of people doing business with you…

Reward your customers with a special price if they give you a certain number of qualified referrals. Offer your customers a gift, gift cheques, or even a free service for each referral. Let your customers give their associates, family and friends a gift from you. You can afford to give simple gifts both ways and possibly double the effectiveness of your strategy….

Step 4. Keep It Simple…

Post out a referral card with all your orders, or just drop one in each shopping bag….Put a sign or sticker on all of your products… and make people an offer…

Put a sign or sticker on all of your products and make people an offer…. Present a seminar or information night for your past customers and have them bring their friends. Encourage your past customers to buy gift vouchers to introduce their friends….

Introduce yourself to a whole new market, with a bring a friend sale…Throw a party to celebrate your customer’s purchase, and you, and invite their friends to come along….

In Summary:

• Think out of the box
• Make sure you give referrals as well
• Invest in Your Current Customers
• Educate Your Customers on the type of referrals you want
• Keep It Simple
• Think about what you are asking for – make people feel good about giving you a referral

Yours

Peter