I was talking with a business owner earlier today who runs a family owned business which has been in operation for over 25 years.
And to put it bluntly, he was really struggling with lower sales and cash flow issues.
I wanted to share with you the specific suggestions I gave to him to tap into the rich relationships he had earned over the years by building up his client base. You can use these same tips to grow your sales, increase your cash flow, and build up your business.
Formalizing Your Referral Systems
Any business with existing customers would immediately profit from instituting formalized referral systems. Here are several potential referral systems you can use in your business. The key is that these are systematic, automatic, reliably run processes that you use to generate referral business versus “one off” individual efforts.
You don’t need to use them all. Instead, choose one or two to implement in your business right away. They are low cost or free, and will dramatically enhance your sales and your client base.
The typical referral client buys more, refers more, and stays with you longer. Plus they are higher net customers since your cost to acquire a referral customer is relatively so much lower.
1. Point of Purchase Straight Referral Request: The best time to ask for a referral is often right at the time your customer buys. Have a scripted out referral question that you AUTOMATICALLY ask every customer who buys.
“Thanks Sam for choosing us to redo your landscaping, we take it as a real compliment that you chose us to work with. May I ask you a question, who are two other people you know who are looking to remake their yard and create a stunning landscaping like you?”
2. Point of Purchase “Gift for Your Friend” Campaign:
“Thanks Susan for shopping with us today. I know you’ll love our “Spoil Yourself Bath Kit”. Who are two of your friends that you’d like to give a complimentary “Bath Spa Sampler Kit” to? Normally it’s $19.95 for the kit, but for a limited time we have two complimentary gift certificates that you can give out to your friends.”
3. The “Compliment” Campaign: Every time one of your clients says a nice thing about your business, ask your power referral question. This question should be scripted out and memorized by all your team members. Quiz them on it and if they get it right, give them $10 bucks on the spot.
“Erin, I really appreciate what you just said. It means a lot to us that you get great value from our consulting program. May I ask you, who are two business owners you know who like you are serious about growing their business, and building a business they could one day sell, scale, or even own passively?”
4. Forward to a Friend Campaign: If you do an eletter, ask your clients to forward your eletter to those friends or colleagues they have who they think will benefit from your eletter.
“P.S. Please feel free to forward this eletter to your friends who are interested in buying designer jewelry at wholesale prices.”
5. Referral “Tools” Campaign: If you already send physical stuff to your customers, send them a few extra to give out to friends in an attractive “mini kit” or packaging that encourages the friend with some incentive to try your product or service.
E.g. At our live events, we give attendees 3 copies of our latest bestselling book for them to give out to other business owners they know who are seriously interested in growing their businesses the next level.
The bottom line is for you make sure asking for referrals is a systematized, automatic part of your business. As I said at the start, pick one or two ideas to start with and then grow your referral systems over time.
Have at it!
Free Business Bestseller!
Build a Business, Not a Job: How to Build Your Business to Sell, Scale, or Own Passively
Get your copy of this 176-page classic from Wall Street Journal Best Selling author David Finkel.
Or for more information on growing your business visit David on the web at: www.MauiMastermind.com
{ 0 comments… add one now }