Recommendations and Referrals

The best marketing you can ask for is when somebody recommends or refers you to somebody else. Why is this the best? Well for a start it’s usually free but more importantly you’re getting a qualified lead that already trusts you because their contact has endorsed what you do.

We spend a lot of time getting our marketing message right, anxious to make sure that people believe what we’re telling them because we know how good our products and services are. But you know that advertising is never as powerful as somebody recommending a business to do business with.

Five reasons why referrals are good:

1. They’re usually free
2. Referred customers often spend more than those who come to you by other means (you’ve got the “trust” established from the off, so no time wasted)
3. You can ask for them confidently and easily if you know you’ve done a good job/sold an excellent product
4. Referrals give your business credibility
5. You can turn them into testimonials (always ask first) which you can add to your website, other marketing literature and newsletters.

How do you make sure you get people to recommend you?

Some businesses literally grow on referral marketing alone. Think of solicitors and accountants, alternative therapists and hairdressers. Without recommendations they would have to market much harder because these are all areas that are sensitive to the individual and require some element of trust for us to spend our money. These are our top tips on how to get referrals:

• Ask for them! You’d be surprised how many satisfied customers really don’t mind recommending you to somebody else. We’re all looking for excellent service and a positive buying experience so just a bit of encouragement to pass it on is all that’s needed.
• Offer an incentive. For example a 20% discount on their next purchase or cash back (have you noticed the banks doing this if you recommend a friend?)
• Follow up your clients after a purchase for feedback and then ask if you can use either a testimonial or if they will refer you to somebody else (whichever you feel is more appropriate)
• Use your marketing literature. When you pass out a business card, give them several so they can pass them on, or if you send out an email newsletter make sure you’ve got a “forward to a friend” button.

Think now about how many of your customers would recommend you – we bet there are a few. Time to put a plan into action!

Karen McNulty
MarketingPlanWiz