If I had to choose one effective Internet marketing tool, a
business referral program would be right at the top of the list.
Whether your business is online or off, a good referral program
will increase your profits.
Another word for referral is "word of mouth". If you can just get
enough people talking about you in a positive manner and sending
customers to you, you will have more business than you can
handle! A business referral is priceless.
Don't Wait for Your Customers To Send You Referrals
Many online business owners feel they can only get referrals by a
customer taking the time and initiative to tell a friend or
acquaintance about them. The truth is, most customers will forget
to mention you or only tell others about you if asked. You will
get some referrals by treating customers well, but the number may
be limited to a few.
Ask For Referrals
Use the methods below to initiate referrals from your present
customers. The most important thing to remember is that
when a potential buyer is referred to you by a happy, satisfied
customer, half the sale is already made. That's the benefit of
getting referrals!
Who Do You Ask for a Referral?
A happy, satisfied customer.
What Do You Ask?
When writing to a customer to ask for a referral, first reinforce
the benefits, value, and contentment that customer has just
experienced with your company. Write and thank them for
purchasing your product (some companies send a thank you note or
e-mail just saying thank you first - this way the customer
doesn't think you're just trying to get something from them).
A day or two later, send the customer a second thank you and
mention some of the benefits he/she experienced while dealing
with your company such as prompt service, great quality, help
with a problem, etc. Once you've reminded them of the benefits,
politely mention that he/she may know someone who would benefit
from your company's product or service. Ask the customer if
he/she can think of anyone who would save time, money, and
headaches by purchasing from your company.
Why Should the Customer Give You a Referral?
The customer should give you a referral because it could benefit
their friend. If he/she has a friend that is going to be purchasing
the product or service that you offer, he/she has an obligation to
tell that friend about your site, especially if it is going to save
them time or money, doesn't she?
When Do You Ask for a Referral?
The best time to ask for a referral is right after the customer
purchases from you. Your customer is still excited about h/his
recent purchase and will happily talk about it with friends!
Where Should You Ask for Referrals?
As I mentioned earlier, a second thank you letter would probably
be best. Or, you could make a quick phone call in some instances.
The first thank you should show your appreciation for the purchase
and how much you value the customer. If your company is online,
you can send both the first thank you and the referral letter via
e-mail. This will save money, time, and paper. If the customer has
already purchased from you, he/she expects to hear from you again.
How Should You Ask for the Referral?
Ask for your referral in a way that's irresistible to the customer.
Take the time to calculate how much one customer is worth to you
over a period of one year (in other words, how much will that
customer spend with you based on the nature of the product?).
Once you've established that the customer has benefited from your
company and knows someone else who would benefit, you're ready to
ask for the referral.
Make your offer irresistible and, if possible, ridiculous!!! If
you calculated that the average customer spends $1,000 per year
with your company, then would it be worth it to offer a $100, or
maybe even a $200 incentive for them sending a new customer to
you?
After all, you probably would have never had that customer if not
for the referral. That new customer may spend thousands of dollars
with your company over the next several years. If that happens, it
would really be worth the investment, wouldn't it? I know what
you're thinking, that's too much money! But, before you decide
against it, try testing your offer and see if it brings in traffic.
The funny thing is, some people will never ask for the referral
fee, they'll send you the business just because they like you!!!
Try it on the next customer that purchases your product or
service. You can't afford not to get referrals!
About the Author
Candice Pardue is the Webmaster and Co-Creator on Online
Success for Internet Business. Learn more secrets about the
power of business referrals through affiliate programs, and why
this technique has been one of the most effective sales methods
for online businesses... http://www.online-success-tips.com/