As any MD/Owner will tell you, growing a small business is very hard work. The sales task alone is a time consuming one with a constant need to fill the “sales funnel” with fresh, qualified prospects on a consistent basis.

You won’t find qualified leads for your business from cold contacts either, they only result from building the business into a strong referral business; but when you do, the benefits for a stronger business are compelling.

For most businesses, developing a strong referral marketing mentality makes perfect sense in terms of on-going benefits, as demonstrated here:

Referral marketing reduces your sales expenses and sales cycle. With less time calling cold prospects, your small business can focus on customers and their circle of influence.

Referrals will build your level of satisfied customers. The cycle self-perpetuates with more satisfied customers referring others to your company.

Referrals increase your sales revenue. According to world-renowned sales trainer, Tom Hopkins, in “Sales Prospecting for Dummies”; your closing ratio for non-qualified leads is 10 percent versus a 60 percent close ratio with referred leads.

So the obvious question is “why is it that so few businesses do it”?

In my experience, they don’t use the correct strategies for building long-term referrals and therefore have minimal success. Here are a few tried and tested tips for success:

• Set Your Target: In business, it’s important to measure the results to improve performance. Set a clear goal with a time line. I.e. 10% increase in referral business over the next 10 weeks.
• Timing: Give your clients time to experience your service or product before asking for a referral. Only ask for a referral at close if you know your client is already delighted with your business.
• Your Top 20: Not all customers are strong referral contenders. Find your top 20% who are delighted about your business and ask them for referrals; and ensure their network is the type of client you want.
• Give and You’ll Receive: Give your clients extra service and after sales support before asking for referrals. When you give willingly, customers will return the favour.
• Type of Customer: Inform your referring clients of the type of customers you can help so they have a clear idea of the customer profile best suited to you.
• Rewards Program: Consider providing rewards to your referring customers on a regular basis. If a customer provides you with 5 sales, offer them something special, e.g. discounts.
• Thank-You: Your business needs to establish trust to build strong referrals. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door.

These tips may seem simple and obvious but when implemented on a regular basis they will drive your referral business and build you sales revenue.

Start today to grow your referrals today, hire me to help you develop your on-going strategy.