The biggest slice of new work for many businesses is through word of mouth and referrals. It then comes as a surprise that most businesses just "hope" clients will refer them, and don't have a referral strategy. Include a referral strategy as part of your marketing plan so it is less likely to be overlooked.

A happy customer may tell their friends and family about a business without prompting, but without a referral strategy this free and often largest sales channel is underutilized and unmanaged. Don't rely on hoping clients will refer you!

Set Expectations from the Start

Outline your referral strategy to your client after the sale. Explain that a significant part of your business is by referrals by happy clients. Ask them "What would I need to do to ensure you are comfortable to refer our services to your friends and colleagues?". This plants the seed for referrals, and you may learn more about your clients expectations. Inform your client about rewards and benefits for them to refer your services.

Deliver a Quality Product or Service

Make sure you deliver on your clients expectations. Referring people to your business is not something most people take lightly. Their reputation and relationship with the person or business they refer is at stake. For example if I told a friend about a great car for sale and it turns out to be a lemon, how would that affect how my friend perceived me? Of course the reverse is also true, refer a friend to a business that solves their needs and your a legend!

Don't be Afraid to Ask for Referrals

If you've completed the two steps above successfully, don't be afraid to ask for referrals! The best time is when you have completed the project and have a happy smiling customer. Add a reminder to your email signiture, email newsletter, or a page to your business website.

Always Followup!

Follow up on every referral, no matter how small. If they never hear from you don't expect more referrals. People like to know if they have been helpful. Respect their efforts by keeping the referrer informed about how the lead progresses.

Reward and Recognise Referral Sources

It is most important to reward and recognize referrals. Offer an incentive for past clients to refer your services. Let them know how much you appreciate their actions. This should go beyond a verbal thank-you. Send a hand written thank-you note, bottle of their favorite wine or other small gift, or even better - reciprocate with a referral to their business!

Remind Clients of Their Positive Experience

For ongoing referrals you need to encourage past clients to talk about you. This does not need to be in the form of a sales pitch, an informative newsletter or Christmas cards are good examples of reminding clients of their positive experience with you, and ensuring you are at the front of mind during a conversation related to your services.

Conclusion

At ClickWebDesign we formalized our referral strategy and offered referral rewards to our friends and past clients. This significantly boosted our business and inspired this article. Following these steps will grow your business, and strengthen relationships with your network - we know from experience!