If you’re like most business owners, you RELY on referrals.
You trust that if you do a good job, your clients will send their friends and family your way.
Let me ask you this.
If referrals are such an important part of your business, do you have a structured referral system in place that makes your results more predictable?
If not, let me help you by explaining a simple strategy.
It’s time to take control of your referrals and put in place a system that generates you more clients and customers.
Imagine that right now you generate 1000 customers a year. And on average every 10th customer will currently bring you a referral.
So 10% of customers result in a referral customer.
Therefore, if you’re generating 1000 customers you’ll ALSO get 100 referrals.
Now imagine if you put in place a system that resulted in every 2nd client referring a new customer.
Now instead of 100 new clients, you’ve got 500!
And if each customer is on average worth $500 profit to your business, you’ve just made an extra $250,000 PROFIT from simply putting together a referral system.
What would you do with an extra $200,000?
Buy a new house? Possibly upgrade your cars? Put all your kids through the best school? Or maybe even invest it back into marketing?
To put it simply, even if you don’t implement any other strategy than this, it will result in a heap of new-found profits you are currently leaving on the table.
So how do you put together a referral system?
Let’s take a look at a case study.
One of my close marketing friends was working with a psychiatrist in the United States.
Their problem was that they were struggling to find new places to advertise and generate new clients.
They had plateaued.
Once they started to dive into the business – how it functioned and operated – to try and find the greatest leverageable opportunity, something became very apparent.
They didn’t have a system in place to generate referrals.
But they DID have an incredible offer.
You see, unlike most shrinks at the time, she would offer a “Free Analysis Session”, where she would see someone for free for up to 45 minutes, and help them overcome an immediate problem.
As a result, clients who came in usually stayed for a minimum of 4 months.
So what did they do?
Well it was very simple. For every existing customer, and new customers coming in, they asked the patient something very simple.
Take note, this was only done AFTER they had achieved some sort of result for the client.
The client was in a happy and grateful state of mind. She would say:
“Well, when you first came to me you were (in a bad situation, explain the specific situation), and after working together for (x period of time) you’re now (new, great, amazing situation). Now, do you think you have any friends or family members who would benefit from the same results?”
If the client said yes, here’s what she’d say:
“Fantastic. Well here’s what I’d like to do. I’d like to buy them an hour of my time, so that they can come and see me for an hour. Don’t you think it would be amazing if they could get the same sort of results as you? Well I’d love for them to come in and see me, so we can find out how we can help. So here’s what I’d like you to do. Have a conversation with this person, open up to them about how much working with us has changed their life, and ask them to give us a call to organise the free session”
Now how simple is that?
Now did EVERY client refer a family member or friend?
But a lot did.
The offer was really good, and it came from a place of trying to HELP her clients and their friends.
She was offering value.
As a result of that incredibly simple referral strategy, over 6 months she doubled the practice and had to employ a new psychiatrist to handle the extra work.
I’m not promising you will double your business in 6 months using this strategy, but you will DEFINITELY grow your business by implementing a simple strategy like this.
Here’s what you need to do, step by step:
- Think about your current customers, and the stage in your sales and delivery cycle where they’re the happiest with your service
- At that point in the relationship, what offer could you make to all their friends and family? What’s something you could give your customers to give to their friends and family?
- Put it all together and offer it at the right time
Remember, don’t just read these actions steps, actually implement them!
If you’d like help with putting this into practice in your business, give us a call at 1300 680 223 . We can help.