Referrals 101: Earning, Asking, and Receiving

Referrals are at the heart of increased growth for many local businesses. We count on people telling other people about our business, and the services we offer, to refer new business to us.

But why do people send us referrals?

In a nutshell, we’ve earned them. We’ve done something to stand out in the minds of others to the point they want to send us more business. It might be great customer service, an intriguing referral and incentive program, or a great product or service that promotes referrals. But it all still comes down to our ability to stand out to consumers in a way that meets their needs and the needs of their family, friends, coworkers, and acquaintances.

At the same time, people often won’t think to send us referrals, even if we’ve earned them, unless we ask for them!

Having a referral process in place should be an integral part of any local business’ marketing plan. This process should include the why, how, and when of asking for referrals.

The "why" might appear to be the most obvious: Businesses depend upon referrals to build and grow their customer base. At the same time, however, referrals can serve other purposes, including expanding a professional network, training and educational resources, and building a list of businesses your can turn to for your own purchasing needs. 

The "how" of asking for referrals deals with your process for gathering referrals and maintaining a referral list. Will you ask for them verbally? Will you get them via email or in writing? More importantly, the "how" also focuses on how you plan on generate and earn referrals. To generate and earn referrals, at a minimum, you want to:

• Be an accessible expert in your industry who consistently stays visible to your target audience.
• Provide the best customer service possible to the point that others can’t wait to refer people to you.
• Stay in front of and interact with your current contact list consistently -- don’t fall into the out-of-sight, out-of-mind scenario.
• Help consumers and your audience understand your market and what you truly have to offer so they’re clear about whom they should refer to you.

Finally, the "when" takes the "how" into consideration and should incorporate any time you plan on requesting referrals. It might be at the close of every sale, any time a new customer or patient walks through your door, in every email campaign, at networking events, or in scheduled marketing programs and email campaigns.

In addition to when you’re requesting them, a referral process needs to also include when you plan to follow up with the referrals that others have provided to you.

In many cases, referrals are the heartbeat of a local business, so it’s important to nurture the referral process and understand that you need to first earn referrals, and then ask for them to support your local business.