How to Successfully Ask For Referrals

Don't like asking for referrals, Vince Golder shares some powerful ideas on how you can "Invite" customers to give you referrals, rather than asking direct

Many business owners and sellers find they have a natural resistance to asking customers for referrals. Why? The simple answer is FEAR. Many sellers are afraid of turning off current customers by asking them for the names and contact information of their friends and acquaintances.

When I ask business owners if they ask for referrals, many quickly reply “Oh no we never ask for referrals, that is so unprofessional and sounds desperate!!”. I know in reality they are afraid to do so and asking for referrals is not “unprofessional and desperate, in fact it is very much the reverse when done properly.

Such fears are unfounded and most companies are missing out on a potential massive amount of business just by not asking for referrals. Most companies only receive 40% of the referrals they should be getting and there are many reasons why?

The main reasons are due to a lack of a structured referral marketing programme, customers are busy people and refer spontaneously and what I call “referral apathy” i.e. some customers consider they pay good money for your products or services, which they know they can easily get from other companies, so why should they go to the trouble to refer your business?

Any company can literately double their business annually by having a structured referral marketing programme which includes a sound “referral policy” in their business.

The good news is that you do not have to ask for referrals DIRECTLY, you can “invite” customers to voluntarily give you referrals using various professional approaches.

The fact is you’ll never harm your relationships with your customers by simply asking them for referrals. If you have an excellent relationship with your customers and they fully appreciate and understand the benefits and value you give them, then you will definitely have no problem in getting referrals on request. All customers know that you are interested in making more sales. They won’t blame you for that.

If they don’t give you a referral when you ask for one, their lack of response only means they have other things on their mind at the moment, or that they may have an issue with you, which you must seek to resolve ASAP. The very worst that can happen is that they’ll say no and if they do then just say “thanks anyway” and move on to the next customer. It is very unlikely people will say no directly, they will probably say OK and then do nothing.

You will probably find that fully 50% of customers and contacts you ask for a referral will gladly comply. So think of it this way: If you ask 200 people for a referral, you'll get an average of 100 new WARM leads. That’s 100 more new warm prospects than you would have if you never asked at all! So it’s easy to see that you have everything to gain, and absolutely nothing to lose by just asking!

You can bolster the percentage of positive responses from requesting referrals from 50% to 75% by simply using many professional, proven referral methods which include.

Having an Official “Referral Policy”

How many businesses do you know that have a referral policy? Not many I bet so why not beat them to it and have your own. Maintain an official referral policy within your customer charter (if you have one) and display in on your Web site, your written proposals and bids, on your statements and invoices, even on the back of your business cards.

A referral policy tells your customers UP FRONT that you both GIVE referrals and would like to receive them. This briefs customers on the way you work and consciously encourages them into referring you more.

One of the best ways to GET referrals is to GIVE referrals

Reciprocal Referrals

When you offer referrals to customers first (B2B), you’ll be in an excellent position to ask for referrals in return.

Project Evaluation Meetings

One of the best responses I get to asking for referrals is after I have conducted a “project evaluation” meeting, where you meet regularly with your customer during and after a project, to assess the work you have done. If the customer is pleased with any positive results achieved, then that is a great time to “invite” referrals, suggested script as follows;

“So John, you will see that the project has exceeded your agreed targets within specified time and well within budget, sales are up and costs are down, making for a much higher profit, are you pleased with these results?”

Your customer replies and confirms that they are indeed extremely pleased.

You can continue with saying;

“That’s excellent John, I’m glad you are really pleased with the benefits of my work. John I wonder if you could help me?

I’m looking to work with some good companies who would be interested in gaining the same benefits as you have done. Do you know of any other companies who you could help by introducing me and my services?”

Another way to make this approach could be based on saying

“Do you know of anyone else who would like to receive the same benefits?”

You can adapt and use the same line on any consumer or business product or service.

Project evaluation meetings are also an excellent opportunity to obtain testimonials and case studies from customers.

Letter of Appreciation

How many times do you receive a “Thank You for Your Business Letter” from your suppliers? Do you send such a letter to your own customers?

In addition to any hospitality you give your customers, you also send them a formal simple letter annually (prior to end of year) thanking them for their business for that year, sincerely stating that your and your staff’ appreciate their business and look forward to a continuing business relationship or “partnership”. Within this letter you can incorporate a simple customer survey and referral request.

The Letter of Appreciation idea is such a powerful and simple strategy, which has gained me and my own customers many referrals over the years.

Important, ALWAYS Remember to thank your referrers no matter results, better both verbally and in writing and especially inform them of any progress with their referrals.

In conclusion there are many more ways you can successfully and “professionally” ask for referrals, what you have to do is work out an official structured programme on how you and your staff can best first “qualify” for referrals, how and when you intend to ask for referrals, how you follow-up on them etc.

Get this right and I’m confident you see quickly see a huge dramatic increase in your referrals and business at zero / min. cost.

Referral Marketing Calculator: To see how much potential referral business you can gain through having a referral marketing programme go to http://www.goldnetreferralmarketing.co.uk/calculator.php