referrals: a 10 step guide

A guest article from marketing consultant, Nigel Temple:

Ah! Referrals! What a great way of generating new business. As the prospective client is 'pre-sold', when you talk to them, there is a high chance of winning the business. The big question is - are you getting your fair share? If you are not sure - check out this 10 Step Guide.

1. Set targets. For example: one referral a week from everyone in your team. I am sure that you set targets for other parts of your promotional mix, don't you? So why not set targets for referrals?

2. Start a chain reaction! If you want more referrals - start giving more referrals. In Deepak Chopra's book, 'The Seven Spiritual Laws of Success' (Bantam Press), he talks about the Law of Giving: "The universe operates through dynamic exchange...giving and receiving are different aspects of the flow of energy....and in our willingness to give that which we seek, we keep the abundance of the universe circulating in our lives." Wow! Heavy Stuff as Deepak would say - but this concept really does work.

3. Expand the 'Reciprocity Factor'. Don't just recommend one supplier: recommend three. This is only fair, isn't it? After all, in business, you are not supposed to 'single source', are you? Typically, companies go out and get three quotes, don't they? So you are helping them - by providing three people to call. On the one hand, you will be seen as impartial - and on the other hand you have tripled the 'Reciprocity Factor'. By the way - ensure that you TELL EACH SUPPLIER that you have recommended them.

4. Tell new clients that you will be asking them for referrals. This advance warning will 'pave the way' for when you pop the question!

5. Decide exactly which words you will use. And then write the words down. Some people get quite nervous when they do this: so the answer is to practice saying the words out loud. You can do this on your own - or in a 'role play' exercise with a colleague.

Here are some words to get you going:
“Tell me, who else do you know who might like to hear about us? We would like to send them a special introductory offer."

6. If you work in a team - train your colleagues in the 'Art of Referrals'. Discuss referrals in team meetings several times a year - in order to remind them of the importance of this area.

7. Thank your 'Referrers' (also known as 'Advocates') personally. A nice idea is to send them a hand written 'thank you' note. It may be appropriate to also send them a small gift.

8. Keep records. In your Sales and Marketing Database (you do have one, don't you?), include a 'flag' for people who have given you referrals ('advocates'). If they have done it once - they are likely to do it again.

9. Keep asking! Make 'asking for referrals' part of the "way we do things around here." How about setting up a 'Referral Competition'? Whoever produces the highest number (during, say, a three month period) wins a bottle of champagne!

10. Measure how many referrals you get each month, each quarter and each year. (Remember that "What gets measured, gets done").

I would be most grateful if you could tell your colleagues and contacts about me - and the free marketing toolkit on my homepage. (Well, I've got to try, haven't I!).

Business resources

More info:

New seminar: how to get clients to come to you! October 21st, packed with some of Nigel's best kept marketing secrets. Huge bundle of added value goodies.

Do you want more clients? One-to-One marketing consultancy from Nigel.


	Written by Nigel Temple, marketing consultant, trainer, speaker and author. Read more of his articles and find out about his marketing mentor service at www.nigeltemple.com
	23 September 2004