Awesome Hacks on How to Get Referrals

Awesome Hacks on How to Get Referrals

How do your customers find out about your business? For many small business owners, the first answer is "referrals". In this article, I'm going to give you some awesome hacks on how to get referrals for your small business.

Referrals are consistently at the top of the list in many surveys as one of the best ways to get new customers.

Did you know...

Word of Mouth Referrals Statistic

The importance of referrals for any business can't be understated. Here are some of the many benefits referrals have for your business:

  • Reduced Cost Per Lead - Acquiring new customers from referrals is typically much cheaper than other marketing channels. In many cases, a referral can cost you next to nothing!
  • Increased Closing Rates - Referrals are warm leads because they've been referred by someone they know, like, and trust. Closing rates on referrals can be as high as 50-70%. Not bad!
  • Referrals Snowball - Referrals continue to build on themselves like a snowball rolling downhill. A client referred to you, has a higher likelihood of sending referrals to you.

With that said, here are some awesome ways on how to get referrals for your business...

Hacks on How to Get Referrals

Getting referrals for your business doesn't have to be difficult. With the right tactics, you are sure to get more leads and bring on more of your ideal clients.

Here we go!

Tip #1: Be Exemplary

This one kind of goes without saying, but it's got to be on the list.

Referrals start with a great customer experience and amazing your customers. A customer must be completely satisfied before they'll even think about referring your business to someone they know.

Did you know 86% of customers are willing to pay more for great customer experience?

So, not only will a great customer experience increase your referrals it can also increase what you are able to charge for your products or services.

In order to get referrals your business must "be referrable", and that starts with blowing away your customers expectations!

Looking for ideas on how to satisfy your customers? Check out these articles NOW...

Tip #2: Ask for Referrals

You may get referrals without asking, but many customers need a prompt from you in order to refer.

Your business will receive significantly more referrals if you get in the habit of consistently asking for them.

It's critical you set up a step in your customer onboarding and fulfillment process to request referrals to ensure your "ask" becomes consistent.

Tip #3: Don't Ask Too Early

I'm sure there are plenty of people who will disagree with me on this, but I think a lot of businesses ask for referrals way too early in the sales and fulfillment process.

I've seen "experts" recommend asking for referrals right after you sign up a new customer. In most cases, this makes no sense!

How can a customer feel comfortable referring you before they've had a chance to really experience your product or service? Asking for referrals too early will significantly reduce the number of referrals you receive.

Tip #4: Create A Referral Program

Creating a referral program can be a great way to formalize your referral engine. Most referral programs are designed to motivate your customers to help you find new customers.

With a referral program, you are going one step further than simply asking for referrals, you are rewarding current customers for referring you to new customers.

Tip #5: Let Your Online Reviews Do The Talking

Word of mouth marketing is fueled by your online reputation. Most people who are referred to your business will still go online to check you out.

Your online reviews are the social proof you want them to see. Great online reviews will confirm what they've already been told and make it that much easier for you to convert people who have been referred to actual customers.

Online reviews can absolutely help grow your business so it's worth your time to learn how to manage your online reputation.



Tip #6: Focus on Referral Partners

You know what's better than getting a referral from a current customer? Getting a flood of referrals from one person!

I'm talking about referral partners (aka power partners). These are people who may not necessarily be customers of your business, but they are people who work with your ideal clients on a daily basis.

Here are a few examples:

  • A mortgage broker might create a network of real estate agents who can refer them business.
  • A commercial landscaping company might focus on building relationships with property managers and commercial real estate owners.
  • An interior designer might start building relationships with home builders and home remodelers.

You get the idea...

I know business owners who have built very successful businesses by simply focusing on building a network of referral partners that send them leads day in and day out. Believe me, this works!

Tip #7: Set Expectations Upfront

Remember how I said you need to ask for referrals? Not only do you need to ask, but you need to let customers know you are going to ask ahead of time.

This is what I mean by setting expectations upfront. All you need to do is include a step early in your customer onboarding process to communicate this to new customers.

For example, if I use a quick video to welcome new clients onboard I might add language like this into the video...

"We are confident you will be blown away by the results you see in working with our company. If we meet this goal, we're going to ask you if you know any other people who'd like to experience the same results as you do."

Pretty simple, right? Find out where you can plug this step into your process.

Tip #8: Make it Easy for People to Refer You

Some customers may be happy with your business, but they don't refer you because they're not comfortable doing it, they're not sure how to do it, or they simply lack the time.

Make it easy for customers to refer your business by teaching or showing them how to do it when you ask for a referral and do as much of the heavy lifting for them as you can.

For example, give them a template-based email they can easily customize and send to people they know.  

Tip #9: Have Clarity on Your Ideal Client

It's much easier for people to refer you when they can clearly understand who you are trying to serve. Who is your ideal client?

If your target market is too broad it will be much more difficult for people to refer you and/or the referrals you get will be lower in quality.

The more specific you can be about who you want to serve, the easier it will be for people to think of someone they can refer to you.

Tip #10: Eliminate Referral Risk for Your Customer

When a customer refers you, they are putting their reputation on the line. If you blow it, not only does it negatively impact you, but also impacts the person who referred you.

Can you eliminate the apprehension a customer might have in referring you business?

Here's what I mean...I know a real estate agent who has the following referral program:

"If you refer a client to us and they are not 100% satisfied at the end of the transaction, I'll pay both of you $1000 for your trouble."

How's that for helping to eliminate risk? He feels so confident in his ability to serve the client he's willing to put his money where his mouth is. Can you do something similar?

I hope you can use some of these hacks on how to get referrals to help your business.

Are you using any tips I didn't mention? I'd love to hear from you, just comment below.

It would be such an honor if you think this article is worthy of sharing too.

Are you looking for more solid local marketing tips and tricks? Check out our Ultimate Guide to Local Marketing.



Header image courtesy of Pexels.com.

About the Author Tim Fitzpatrick

Tim Fitzpatrick is the President of Rialto Mobile Marketing. At Rialto Mobile Marketing, we help take the guesswork out of marketing so your small business can grow. Marketing your business shouldn't be a constant challenge. If you are ready to eliminate the uncertainty and confusion of marketing your business, we can help.

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