Marketing Training UK

 

One of the easiest most cost effective and risk free ways of winning business is through ‘word of mouth’.  Or as it is known in marketing,  ‘referral’. 

 

Most companies tell me that most of their business comes from “word of mouth” and most businesses constantly ask themselves “How do we make more money?”  The answer is often, let’s get more customers.  The question is how?

 

The options are of course various and can include advertising, direct mail, telesales, JV’s, social media, websites etc.  But one of my favourite ways of marketing is referral.  Why?  It is one of the easiest, least expensive and most productive ways of winning new business. 

 

I hold seminars throughout the UK and always ask delegates.  Where do you spend the most of your marketing budget?  I am usually told advertising, or direct mail.  I then ask, where do most of your clients come from and I am usually told “word of mouth”.  My next question is – Is there something wrong with this picture?

 

I then ask who in the room has a systematised referral process in place in their business?  The response always amazes me.  The truth is most businesses don’t have any way of pro-actively winning referrals, let alone a system for it.

 

So my advice to you is to get a system. A simple system for winning business by referral:

 

The system

 

No 1   Ensure everyone in your company is aware of the importance of word of mouth

 

Start by ensuring that everyone in your business reads this article and discusses its implications for your business

 

No 2   Target your clients?

 

If you have 100 customers and you asked them all once per year for a referral.....what would the result be? On average let’s say that each one gives you one referral. Some will not give you a referral, whilst others may give you 2 or 3 per year.

 

Let’s say because referrals tend to be high quality leads, you convert 50% of those referrals, actually resulting in any business. 

 

 

What have you just done?

 

You have just grown your business by 50% without spending a penny on marketing and with no risk.

 

You could also add the thought of winning repeat referrals from your clients, let’s say four times a year.  Now what would a system for winning referrals be worth to you?

 

One last point!  How much does this cost and what is the risk?  Well – it costs nothing to ask for a referral and the worst thing that could happen is a client will say no!

 

What to say4.

 

Here is an example of a script, which has been proven to work in many different industries and businesses.  The script makes it easy to ask for referrals and easy for your clients to give them to you.

 

Q1       First of all, thanks for your kind feedback regarding our services and I am really pleased you are so happy.  That being the case, I was wondering if you could do me a favour?

 

You have just got your first YES!

 

Q2       How long have you been in business?

            Another easy question

 

Q2       So I suppose in that time you have probably met a lot of other business people, haven’t you?

Notice the words “haven’t you” at the end.  This is called a “yes tag” because it encourages a “yes” answer.

 

Q3       From what you have said during our meeting you are very pleased with the service we have provided for you.  Is that correct?

 

You have just got your second YES!

 

Q4       Like most businesses we tend to get lots of our customers through word of mouth and as you stated we have increased you profit over the past six months by about 40%.  I was wondering, out of the people you know, who would the top 3 or 4 people be that I can help in the same way that I have helped you?  In other words, who do you think they would also benefit greatly from our services?

 

Q5       So that it is easier for them to take my call it’s OK to use your name, isn’t it?

 

This is a key question.  Unless you can use their name when you follow up you don’t really have a referral – merely a cold lead.  Notice how the question makes it easier for you to get permission by explaining the benefit to their contact of using their name as a referee – notice the “yes tag” at the end of the question.

 

Keep accurate records

 

The key factor in any marketing activity is knowing what works and what doesn’t.  Remember, it’s those who keep records that break records.

 

Wishing you every success in winning referrals.  If I can be of any help to you in your marketing, or you have a referral for me get in touch.

 

If you are interested in my six CD and workbook called ‘Grow your business with referral’, call me on 0118 930 5700.  Or take a look at click here