The Referral Engine

“I understand how important referrals are but how do I get them?”

In my opinion customers or clients will only give testimonials or provide referrals if there is a compelling reason for them to do so. Hence you need to provide a good reason and this is generally done by providing excellent service which meets or exceeds your customer’s expectations or by providing an incentive to refer.

You are far more likely to receive a referral if you ask for it. Prepare a script along the lines of: “Are you happy with the level of service we provide you? Can we do anything further to assist you? In that case would you be prepared to refer any friends or associates that could benefit from our services to me?”

If you want a referral from another business consider approaching them about a referral you have for them. Once they see you are providing them with quality referrals they will feel more inclined to return the favour or enter into some arrangement.

Offering incentives for referrals can be difficult to manage if there is no formal agreement. A little too much and it’s bribery, too little and you’re a cheapskate, building it into your cost structure can spectacularly backfire if customers find out, if it’s done on an ad hoc basis you can be accused of favouritism. Hence, in my opinion the best policy is therefore concentrating on customers that are genuinely happy with your service!

 

Richard Kemp – Watts Price Accountants
E: richardk@wattsprice.com.au

The advice provided on this Article is general advice only. It has been prepared without taking into account your objectives, financial situation or needs.