Luck is never the usual influencer in getting referrals for your business. It is your loyal customer base that is going to generate the “word of mouth” advertising that so many new business owners base their marketing plan around. As a side note, if your only marketing plan is “word of mouth advertising” when you start, go look for a job!
The first step is to let your customers know you are open to referral business. This can be done through comment cards, survey forms, or other written forms of communication. If you email monthly advertising specials then ask for a referral.
In a lot of cases your customer might be asking “what’s in it for me?” To entice the customer for a referral be prepared to give a discount or rebate to them. If you have a sign up sheet to get information in your store, then add a column that is labeled “referred by”. Use this column to always, personally, thank your loyal customer who referred someone to you.
Develop relationships with “influencers”. Who are these people? They are people and businesses that have direct contact with your primary prospects and can send them your way. If you own a yoga studio an influencer might be the local health food store. If you are a home inspector an influencer would be the nearest real estate agent. Marketing to influencers can be as important as marketing to your target customer.
Building a referral network is a very personal marketing tactic. You need to keep in contact with these people. The major influencers should be met one on one and your customers who refer others to you can be emailed, faxed, or phoned. They can be personally nurtured by acknowledging them when they come into your business. As mentioned above make sure you personally thank them if they sent a customer to you. Set up a referral database and schedule activities with them just as you would your customer database.
One item that goes by the wayside is making sure you treat someone who was referred as a special customer. If they have a problem they will definitely tell the person who sent them to you and chances are you have just lost two customers. So give them special attention.
Establish a complete referral marketing plan and that “word of mouth” advertising might just become a part of your overall strategy and lower your marketing costs.