Three ways to get referrals from clients
In January 2009 I wrote about why membership incentive schemes don't work. My argument was based on health clubs who promote special deals for members who refer them, while neglecting the simple things day to day that keep their customers happy. The key point was that people are not likely to refer to their friends, family and clients when they are not content with the service they receive themselves. Irrespective of the temptation of a free iPod!
I was discussing this with a close friend recently. She mentioned that the health club she is a member of has such an incentive scheme. I asked her if it had ever tempted her to introduce a prospective member to the Club. Her answer was 'no'.
I then asked if she ever had introduced new people to the Club. Indeed she had. But she wasn't motivated by any referral promotion, but by the opportunity to treat her friends. The club had given her free day passes to bring a guest, and each time she has been keen to use them and spend time with people she likes.
I then asked her if she is happy, in general, to refer people to the Club if asked. She is. I suggested it might be easier if the Club asked her if she knew someone specific, rather than try general promotions which clearly don't work. I suggested, for example, that they ask for introductions to local businesses to boost their corporate membership.
Later that day my friend turned to me and referred back to our conversation. "When you mentioned local businesses", she said, "I immediately thought of two or three who might be very interested."
This conversation suggests three things to bear in mind when you are looking for referrals from your clients:
1 - Make sure you have the basics right first. People will not be comfortable referring you to their trusted contacts if they are not happy with the service you provide.
2 - Understand what motivates people who refer you rather than fall back on lazy 'gifts' which may have little impact.
3 - Specific requests in individual conversations are much more likely to produce rewards than a blanket request for 'anyone you know' sent to all clients.
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Comments
Andy, you comments are
Andy, you comments are applicable for someone networking in search of a job. Provide a valuable service first before asking for a referral. For example, provide a marketing idea to businessman, find a job for their teenage son, and so forth. Don't be lazy about the referral but be very specific about the job and type of company you are looking for. It's one thing to ask, "let me know of any jobs I might be interested in." And quite another, "I'm looking for a job as a cost accountant, and I specialize in saving money for continuous processing manufacturing operations."
It's unfortunate many job hunters and business people don't understand the power of doing networking the right way.
Thank you John, you are
Thank you John, you are absolutely right and have provided some excellent examples.
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