How to Consistently Generate High Quality Referrals from Past Customers!

Why are referrals a higher quality customer than cold leads? They Are “Better Customers” – Similar to current customers – Trust is established – Defenses are down – Lower cost of acquisition Price Elasticity Difficult for Current Customers Who Refer to Leave

Why don’t we have a system for referrals? We think we “deserve it” because… – We did a good job – We fulfilled our obligation to the customer – The universe “owes us” referrals! Don’t know what to do Setting aside time, resources to “get it done”

Why don’t customers refer without being encouraged? It’s risky compared to just doing business No motivation provided – Never asked – Never thanked or rewarded (compare to cost of generating the lead) Never recognized No clear way or tool provided They simply forget you…

So, what traits does a good referral system have? It must be deliberate It must be invested in It must be incorporated in your “system” or process It must be consistent

Four strategies for encouraging referrals… Customer Welcome Package Customer Appreciation Events “Random Gift” Campaign Newsletters

How do you welcome someone to the “family?” Is there any welcome at all? Is it memorable? Is it different in your category? Is it worth “telling someone about?” Is it “personal?” If not, let’s rethink this…

A “little box” with a BIG Impact It doesn’t have to be expensive It does need to be personal It should be “related” It should be “impressive” It should contain an “ask” for referrals It should contain a “tool” for getting them back to you

Port’s box…

Daniel’s box…

Aaron’s box…

Customer Appreciation Event A chance to thank your customers AND ask for referrals It combines mail, , and phone calls It culminates into a simple, or complex event It may be done in “combination” with other referral sources You can leverage the event EVEN to those who do not attend Follow up, make it look “bigger” than what it was!

Random Gifts Campaign Everyone likes a random gift! Do it right before your regular rush Ask for referrals and business Do it two or three times a year

Newsletters Testimonials New Customers Reward Your “Referring Customers” “In Print” Remind them of you…

How do you reward referrals? Promptly – As quick as you can Personally – No form letters Publically – In your newsletter, social media, website, etc. With Pizazz! – Nothing “boring”

Questions?