Kick your referral rate into overdrive

No doubt you already know the power of word-of-mouth referrals. An incredible amount of purchase decisions are made via recommendations from friends, family and work colleagues.

But as a business owner, what are you doing to actively increase the number of referrals your business receives? If your answer is nothing then a huge opportunity awaits you!

So, how do you get more referrals?

It’s as simple as asking for them! After all, if you don’t ask, how will people know that you want them?

Many people assume that your business is already “flat out” and you wouldn’t be able to accommodate Auntie Joan even if they were to recommend you to her. So they don’t bother.

Here are some tips to kick the referral rate for your business into overdrive:

• Explicitly tell your customers that you would appreciate referrals. Say something like “If any of your family or friends need help then it would be great if you could pass on my contact details.”
• Give out three or four business cards to customers instead of just one – it is more likely that several cards will be shared around to friends and family.
• If appropriate (and legal) for your sector, offer a reward for referrals. Gifts such as restaurant vouchers generally work better than cash.
• The rate of “natural” referrals will increase in proportion to the quality of the service you provide. Word spreads rapidly when, for example, a customer raves about how honest and reliable their car mechanic is.

And finally, remember that referrals do not only come from customers. Two other important sources of referrals are your own employees and professional referrals from owners of complementary businesses.

The latter is particularly powerful and you should always be on the lookout for reciprocal referral arrangements with other quality business owners.