I haven't met a business owner who doesn't want more client referrals. Some businesses have such high referral rates and return clients that they don't need to advertise or do virtually any marketing. What is their secret? Often it is the act of being in business in the same location for years or inheriting clients from a co-worker who retired or moved. [Did you know that everytime you switch locations you delay the building of your clientele by 1 year?] So while time and luck play a role, I'd rather focus on what you can do right now speed up the buzz about you and your business with the clients you have today.
1. Over-deliver. When you demonstrate that you look after your clients better than they expected, make them feel special every time you see or communicate with them and deliver amazing results your clients will want to tell everyone about you. This is called reciprocity in human nature. (Ever feel that obligation when someone unexpectedly gives you a Christmas or birthday gift?) It does takes discipline, training and focus to stay "on" all the time with your clients. However, once you and your staff make your client care the priority above the technicalities of running a business...running the business will not be so hard.
2. Make it easy on them (and you). Steer away from the legal terms and conditions of your "Customer Reward Referral Program" and tracking points or credits or anything that requires tracking period. Simply ask all new clients who referred them and then make a note of that to reward that loyal client.
Make it easy for your clients to figure out who to refer. Rather than the generic "if you know anyone who could use our services, please tell them about us," give your client a description of your ideal client. If you are a massage therapist, here is an example:
Do you know anyone who works long hours, or who has lots of children, or anyone who is often stressed and would perhaps benefit from a relaxing back massage? If you do, I'm sure they would really benefit from a back massage with us. After all, you know how good our massages are! So, please introduce them to us. And if you do, we'll be sure to do something wonderful for you to thank you....
3. Make it worth their while. Sometimes it is better to not tell them exactly what the reward would be for a client referral as this allows you to personalize the reward (and the value of that reward). Perks during follow-on visits like a free product or a free service upgrade are great for clients that will feel truly rewarded by that. However, often times free movie tickets or a coupon from a nearby restaurant have more memorable value for that client (because you know they need a reason to get out at night.) For techo-geeks like me, I would be dazzled by an iTunes gift card. While some of these rewards do have a cost, you can create a program where there is no cost to you to offer that reward. Consider reaching out to a new business nearby (restaurant, clothing store, or a non-competitive service business) to request they donate a flat dollar coupon for your referral program. For example, $20 at a new restaurant brings them a new customer, rewards your client and doesn't cost you a penny.
Even if you choose to provide a reward that is an expense to you, it will very likely be cheaper to reward all of your referring clients than it would be to place just one radio or newspaper ad. And you'll get a much better response too!
What other ideas to you have that have worked to inspire client referrals?
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