Many businesses depend almost exclusively on referrals. A few come to mind right away: real estate agents, financial advisors, lawyers, and accountants. It is rare that someone would Google “lawyers near my location.” They are going to ask their friends to recommend one. Other businesses advertise, but they rely heavily on referrals. Examples include restaurants, dry cleaners, and car repair shops. If you find a mechanic you trust, everyone wants to know about them!
Because 99.9% of my clients come from referrals, I have given this topic a lot of thought.
I have learned that there are three critical elements to referrals: Earn, Ask, and Give.
Earn
To get referrals, you have to be referable. You must deliver products and services that are so amazing that people want to talk about you.
Dazzle, surprise, wow, and delight your customers. Consistently exceed expectations and solve problems in unique ways. Provide exceptional customer service and go the extra mile (or two). Make every interaction memorable. When you create great experiences, your customers want to share their positive stories with others. As the comedian Steve Martin says, “Be so good they can’t ignore you.”
An idea that lends itself well to this is “Moments of Truth.”
Moments of Truth are the fundamental interactions that must be delivered flawlessly to create loyal customers. People who love your business so much that they want to tell everyone about you. For example, restaurants have four Moments of Truth: good service, reasonable prices, good food, and cleanliness. While there are many other touchpoints, these four must be perfect for every customer. If the prices are fair, the food is excellent, and the service is great, but the bathrooms are disgusting, customers won’t return. Even worse, they will give “negative referrals” and tell others not to eat at that restaurant. Ouch!
What are your moments of truth? Do you consistently deliver them flawlessly?
Ask
Customers don’t always remember how important referrals are to the health of your business. Sometimes, they need a nudge. When they tell you what a great job you did, politely ask them to tell others. Mention it in your follow-up email. Ask for them for the next time they do business with you. Then, make it extremely easy for them to refer you. Send them to your website. Provide a link to an online review site or a short script they can use. Simplify the process. This will ensure they can easily share their positive experiences with others. If you want more referrals, you have to ask for more referrals.
Give
Giving referrals is just as important as receiving them. When a business works hard to make great products and services, show your gratitude. Help them succeed. Think of a few businesses that have done spectacular work for you. Take five minutes to send an email to your network or post something on social media. Spread the word. Strongly encourage others to do business with them. When someone you trust recommends a business it has a lot more credibility. Your small effort can make a huge difference in their success.
Many of us live and die by referrals. To receive more, ensure you earn them. Be worthy of people’s enthusiastic praise. When you exceed expectations, don’t hesitate to ask for them. If a company or individual impresses you with their products and service, let the world know. Your endorsement is a powerful tool. Use it to help deserving businesses thrive.
If your business depends on referrals, this might be a good article to share. Who knows, maybe you will get some referrals!
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