One of the biggest mistakes companies often make when trying to get new business is putting too much time, money and effort into finding brand new customers rather than focusing on utilizing the ones they already have to generate future leads and sales. There really is no better source of future income than the clients you have now. Why you ask? Four reasons:
1. Referrals are extremely credible. When a trusted friend or colleague recommends a business or service to you, you are more than likely going to trust this comany right from the start even if you have never heard of them before.
2. People and businesses who are referred to a business spend more money. Research has proven this beyond the shadow of a doubt and it is likely because people tend to refer others who are highly qualified and not just price shoppers.
3. Referrals are often very inexpensive. In some cases they are free or a fraction of what you might pay in advertising to bring in new clients.
4. They are much more effective in generating new sales than advertising alone.
Are you getting referrals? If not, consider these ideas:
1. Talk about referrals early and often and build them into your sales and marketing efforts. Don’t wait around for your clients to offer them to you.
2. Create a system. It can be as simple as advertising $20 for every referral.
3. Thank your customers for their business with a note, follow-up with them by phone or mail and ask them for referrals.
4. Give every client 3 business cards. You have hundreds so give them out to clients and ask them to pass them along if they are happy with your services.
Referrals are essential to your business so don’t overlook them chasing the newest trend in marketing in your industry. If you aren’t getting any referrals than you absolutely must implement some sort of referral system into your business plan. Remember it can be as simple as just asking your current customers for leads and referrals. You could be missing out on lots of profits and new customers.
