“Measure your success not on the level of profit you’re making today, but on the level of the referrals you’re getting today.” – Sales trainer and author Mark Hunter.
Referral coach Bill Cates calls referrals “Gold, pure solid gold.”
There are many reasons why this is true. According to Nielsen, people are four times more likely to buy when referred by a friend. Studies have shown that price is less of an issue to the referred party. In addition, they are more likely to refer others to you and less likely to experience “buyer’s remorse.”
There’s another reason it makes sense to focus on referrals. Since a big chunk of your business involves acquiring new clients, it frees up your time.
Are you satisfied with the number of referrals you are generating in your business?
If “no,” here are ten tips you can use to help boost up the number of referrals you receive in your business.
- Ask – This might seem pretty basic, however generally when it comes to referrals if you don’t ask, you don’t get. The number one rule is you have to take action.
- Position your question the right way – When you ask someone for a referral, start off by framing the conversation in the following way,
“Most of my business comes from referrals” (or something along those lines).
This does two things: 1) It tells that clients referring business to you is a common occurrence; 2) It implies social proof in that people regularly refer people to your services.
- Be more specific with your question – Instead of saying “Do you know anyone who would be interested in Balanced Habits Kick Start?” State your question so it defines your target market. Say something like, “Do you have any health-conscious friends who could also benefit from learning how to eat better?” or “Do you know anybody who has tried to lose weight but has had trouble keeping it off?”
- Ask with confidence – Asking for a referral is not “begging for more business.” You offer a great service at a fair price. Always be confident in the benefit you bring to your community.
- Ask for a referral at the most advantageous time – For example, ask when they experience a victory such as the end of Balanced Habits Kick Start or Balanced Habits Life. Don’t ask them when they are paying their bill.
- Set the stage early in your client relationship – After a new client signs up for Balanced Habits Kick Start, say something along these lines… “Thank you very much. Much of my business comes from referrals. My goal is to provide you with awesome service that delivers the results you desire so that you’ll be open to referring some of your family, friends or business associates to us.”
- Tell your clients how the process works – The ideal situation is that your client contacts the person they are referring to you and sets up a meeting with you and them. If that’s not possible, another effective way would be your client introduces you via email or on Facebook (through a “group” message). Getting your customer involved in setting up the meeting is a way to make sure the referred party goes from a casual lead to a solid referral. Another option is to set up a landing page to capture referrals. The headline would read something along the lines “Congratulations you’ve been referred by your friend to take part in Balanced Habits Kick Start, the 28-day challenge where you learn how to eat healthily and are supported by your Food Coach and community.” And then you hand out a business card that provides them with your contact information and the link to your referral page.
- Have a brochure on hand to help your clients make your case – If your client says, “I’ll talk to my friend and let you know,” supply him with literature to strengthen his case such as a brochure that outlines your services and all the benefits they’ll receive.
- Add some urgency – If you feel the situation warrants it, you could incentivize the referred person by letting your client know that if they contact you within X number of days, you will offer them a discount of some kind.
- Say “thank you” – If you don’t thank your referrer, they may never refer another person to you. You should also keep them posted on how things are going with the person they referred. Plus it’s not a bad idea to do something unexpected for them. Offer them a free fitness session, a Balanced Habits Recipe Book, or some other discount. When you do, you generally increase your chances of receiving another referral from them down the road.
Having a steady stream of referrals flowing into your business can mean the difference between a business that is thriving and one that is just getting by. Use as many of these ten tips as you can and you can’t help but to immediately experience more referrals…which means more revenue and profit for you.
If you’d like to know more about how Balanced Habits supports your business growth, click here to watch our Director of Sales, Paul Fetters, talk about how systems in your business can save your sanity.