Referrals - Knowledge Not Lies

"Do what you do so well that they will want to see it again

 and bring their friends."

- Walt Disney

We all know referrals are one of our top sources of leads.

 

Self-limiting beliefs, though, say the key is asking for them and giving something (payment) to our customer for giving us the referral. This belief is not true.

Truths/Belief and thus Knowledge:

1. People will only refer you if you do "remarkable" things for them - not because they are paid something.
2. People refer because they want to. They want to help you, they want to help the friend they refer you to and they want to feel smart. (They know something others don't.)
3. People usually only refer when the time is right, it comes up in a conversation, they see someone and it is on their mind, etc.
4. People don't refer because you pay them or give them something. It is ok to thank them with a gift, but that is not the key to getting people to refer you, and if not done right can cheapen the experience.
5. People fear referring because they worry about what you will do with the referee. (i.e., bug them to death to buy from you, not serve the referee the way you served them, etc.) 

Thus a great referral program must:

1. Serve your customers with "remarkable service".
2. Ensure the customer that their referee will be treated well and served (not bugged to buy something).
3. Make it easy to make the referral  now - not when the time is right and easy for the sales rep to ask for the referral.
4. Give the customer something of value to gift to the referee. It is the catalyst to make the referral now and the thing that ensures the customer knows what will happen next (no bugging to buy) and allows them to offer something of value to the referee.
5. This "gift" should be something that allows you to serve the referee and demonstrate your difference.
6. Yes keep the customer in the loop let them know what is happening (they want to know how it went and reinforce the good decision they made to refer someone). It also gives you a chance to ask for another referral.
7. It is ok to send them a little thank you or gift but as a surprise not as the quid pro quo - you do this I'll do this.

My suggestion:

1. Coupon or gift certificate with a place for the customer's name on it - "This gift is for you from ______________ ".
2. A pain statement your ideal customers/prospects have.
3. This certificate entitles you to a FREE service you can provide that will demonstrate how you are different from your competitiors and have value and helps solve their pain.
4. Sales rep gives it to customers to pass on or, better still, ask the customer for the information and say I'll deliver this in person for you - nice envelope, nice certificate and nice gift.

Regards,  
Rick Wallace