There are many different ways of generating new business and getting new clients. To name just a few; there is advertising, sponsorship, SEO marketing, cold calling or attending networking events. Each of these strategies have their pros and cons and it can be difficult to identify which strategy is going to be most effective for you. However one of the most effective, and often overlooked strategies is through referrals.
As you know it is vitally important to continue to grow and take on new clients, but how do you get these referrals? Simple, referrals are generated from existing clients who are happy with your service, they then share the knowledge of the excellent service you provide with others, and in no time this strategy should bring you new clients.
However, in practice it is not so simple. Most people are more likely to be vocal when they have had bad service then when they have received amazing service. It requires you to develop an understanding with your clients of why you need referrals. You need to set clear guidelines of the type of referrals you are looking for. Plant a seed in their mind about your ideal client, e.g. the business size, industry, location, personality and philosophy.
Explain why you need referrals
You probably think to yourself, “What, should I just tell my customers that I desperately need more business? Won’t it put me in a vulnerable position?”
No, it won’t. In business, honesty is an asset, not a weakness. However, it also depends on how you ask for referrals, of course. Here is an example:
Start with an email or a letter to your existing top-list clients and specify that you:
- Analysed your business patterns and realised that generating referrals is the most effective way of growing your business
- Show that you value their opinion and rely on their assistance to help you bring in more clients just like them
- Want to continue serving them well into the future and, therefore, need to ensure long-term sustainability.
Don’t set unrealistic expectations and ask for two referrals this month. End your letter with a sentence that you will give them a call to discuss it further and don’t forget to follow up in a few days.
Bonus: think outside the box. You can find new clients virtually anywhere. Approach your friends, former clients, past colleagues, hairdressers (they know all the secrets!), gym buddies.
Remember, a personal approach is always best as people relate to people.
If you would like more information on generating referrals or know someone we could help, we thrive on referrals and love to work with small business to help them sustain and grow. Give us a call today on 07 3359 8333.