REFER ME - PRETTY PLEASE!

 
Every business needs quality referrals, especially small and micro businesses that don't have the financial resources to plough into advertising to attract a constant stream of new customers through their front doors.  Getting your customers to refer you to others in their network is a sure fire path to growth and has great economic benefits.  If all is going well in your business, your existing and highly satisfied customers should be recommending your business to their circle of friends and family members.  If this isn't happening, then perhaps you need to take a closer look at what can be done to improve matters.

Much as we would just love for referrals to happen by themselves, the whole process needs to be activated and monitored closely by the business owner or manager.

Let's have a look at a few straight forward ways you can begin to make it happen for your business.

Make it easy for your customers to refer you. Always have on hand, quality business cards and brochures describing your business and encourage your customers to take a few extra to give out to members of their business and personal network.

Reciprocate in kind.  To thank your customers who are referring new customers to your business, why not keep a business card folder in your customer waiting area filled with the business cards of your referring customers.  Encourage your customers to put 2 or 3 of their cards into the holder and keep it topped up on each visit to your salon. Don't, however, place stands of other people's business cards in prominent areas of your business - that is important space reserved solely for you!

Reward and be rewarded.  Everyone loves to be recognised and rewarded when they have done something nice for another person, so why not find a way to reward your customers for their valuable referrals.  One of my clients sends out thank you letters each week to all of her customers who have referred someone to her business.  With each letter, she attaches a small monetary gift certificate that can be redeemed within her business on the customers next visit.  Needless to say, her referral business is outstanding with some customers being "repeat referrers" up to 2 and 3 times per month.  Imagine what that is doing for her customer base and bottom line.

Gift Certificates are a form of referral.  Each time one of your customers purchases a gift certificate which will introduce a new customer into your business, they have just given you a referral.  This is a very important type of referral, as your customer thinks so highly of your business, that they have actually invested their hard earned cash to send someone they value along to you - so don't blow it.  I can never understand why some service based businesses treat their gift certificate referrals so poorly and instigate rules and unreasonable (in my opinion) conditions of certificate use.  Value these new referrals to your business.  Chances are they may become an ongoing customer for you, or at the very least, they will give feedback on their experiences to the customer who purchased the gift certificate for them.

Employees should generate referrals too.  Supply each of your employees with your business cards and have them write their names on the cards that they give out to their friends and family.  Then on the first visit to your business, that new customer will receive a special gift or discount compliments of your employee.  Your employee will love the recognition this provides for them and so will their friends.

So remember, every one of your customers and employees, is a potential referrer for your business.  Encourage them to send along their friends and family and remember that people like to do business with those that they know, like and trust.  Is that person you?

Pam Stellema is a  Specialist Coach for Small Business Development.  Her area of expertise lies in coaching and motivating small business owners, managers and their key staff towards maximising productivity and profits, excellence in customer service and client retention, and recruiting and retaining key staff. Pam can be contacted on 0431 975515, 0755 296 426  or to visit her website go to www.pamstellema.com.au

An important message

While every effort has been made to provide valuable, useful information in this Newsletter, I and any related suppliers or associated companies, accept no responsibility or any form of liability from reliance upon or use of its contents. Any suggestions should be considered carefully within your own particular circumstances, as they are intended as general information only.