Referrals are a key source of new business for many companies. Here’s how to ask for referrals in the right way. Many people (including your competitors) are uncomfortable asking for referrals. After all, if you do great work for your customers, the referrals will come, right? This approach is passive and although some referrals may come your way, it’s much more effective to go out and ask for more referral business. The key is knowing how and when to ask.
As is the case with many aspects of business, timing is key. Put yourself in your customer’s shoes. Would you be willing to refer a service provider a few days after they started working with you? Chances are that you wouldn’t, as referring a business to your contacts is a reflection of you and your company. You would want to make sure they provided a good service before risking your reputation and referring them to others. A good time to ask for a referral is when you have hit a significant milestone in the relationship. Perhaps you have worked together for a year, or you have just delivered a major piece of work to the customer. Have they provided any feedback? If they say they are happy with your product or service, that is a great time to ask them for a referral.
How to ask the right way
So how do you go about asking for a referral if you feel the time is right? You could start by saying thank you. For example, you could email your customer or meet with them face to face and thank them for their business. Mention that you enjoyed working with them and that you would like to work with similar customers. Perhaps they could introduce you to someone or send a referral at some time in the near future?
When asking for a referral you need to be specific. If you offer various products and services, you should specify which product line you would like a referral for. Make it easy for your customers to help you. Tell them how best to make a referral – perhaps an email introduction would work best for your business? You might even offer your existing customers a discount or reward if they refer you to a new customer this year.
If a customer takes the time to send you a referral, make sure you take the time to thank them. In order to track where new customers come from, you should have a standard questionnaire for all new customers which asks how they heard of your company and whether they were referred by someone. You can then use this data to ensure you track referrals into your business, which will enable you to reach out and thank your existing customers for their referrals. This will surprise and delight your customers and could result in further referrals.
April 19th, 2023
