On today's podcast, we're going to be talking about business referrals and why so many people don't ask for a referral when they've done a good job. A referral can be asked of a friend, a relative, or even a customer. If you have been doing a good job, why would a friend or relative NOT give you a glowing recommendation?
Both Michael and Simon think that referrals are the best type of new business acquisition you could ever dream of. Another way of asking for a referral is indirect, asking a client to give feedback on your service. If the feedback is strong, then it would bolster your chances of winning the referral.
They are passionate about business and go the extra mile when it comes to delivering great service.
Testimonials
When you're trying to sell a product or service, it's important to get testimonials from people who have used your product or service. Testimonials can help build trust with potential customers and show that your product or service is valuable.
However, once you have a testimonial, it's important to follow up with the person who gave it to you. This shows that you're interested in their experience and that you're grateful for their feedback.
One way to follow up with a testimonial-giver is to ask them if they know anyone else who could benefit from your product or service. This shows that you're interested in helping others, and it may also lead to new customers.
Referrals
So, once we have the testimonial, it makes complete sense to either ask for the referral. Or even better to ask something like this, “whom do you know in your network who would be able to use our services? I think you will be surprised at how many referrals you would receive.
Recommendations
Is a recommendation different to a referral and if not why not? Simon on the podcast speaks about the difference between a recommendation and a referral. He refers to a recommendation as a passive scattergun approach to gaining business. All too often he believes people are not afraid to ask for a recommendation but they are afraid to ask openly for a referral. Interesting perspective no doubt.
Reward and prizes
I know a lot of corporate clients do not allow gifts of any nature, especially if they have a non-bribery policy which is ever so more popular nowadays than it used to be. So, we need to be creative in how we reward clients and friends for passing a referral to transact business. One of the ways we can give a reward is by agreeing to donate to a charity either linked to the client or friend and therefore benefiting the well-being of your community and supporter network
Conclusion
Both Michael & Simon think all people in business or otherwise should have a clear strategy when it comes to going to your network of family, friends and clients for an opportunity to work with the people they know. In starting any business this is one of your first ports of call to establish the needs and requirements of your nearest network.
