Referrals, Testimonials, and the Need For Strong Business Relationships
Monday, July 28th, 2008I don’t know about you, but referrals and recommendations work on me. When someone I trust, either a friend, family member, or someone I recognize as an expert recommends a business, I usually check it out. Especially in areas of wide choice, huge variation in service levels, and many substitute alternatives, I ask my friends what they choose, whether it’s light hearted stuff like a hairdresser or restaurant or more serious stuff like a physician or preschool for my niece.
I often go in with a softer attitude toward performance, too. I cut them slack. And, when they don’t need any slack and perform well, it rates double. And, not only does the business get a gold star, but so does the friend who recommended them. It all works together to strengthen my trust and deepen my relationship with all involved. I go in expecting greatness rather than wondering if I’ll get it.
To use testimonials and referrals to strengthen your business relationships, here are some helpful hints:
1. Ask directly
Nothing goes farther than simply asking. And, be sure to be polite but direct.
If you are looking for more clients, ask your current clients during the process, rather than after. To understand why this particular timing is important, you need to understand a scientific phenomenon called “morphic convergence”. In basic terms, it’s why when you are beginning to shop for a Prius (or even just start to think actively about starting to shop for a Prius) you begin to notice Prius cars all over the place when you never noticed them before. And, you start meeting other people by happenstance that are also looking to buy a Prius. Your mental focus brings these things into view for you, or converges on that idea.
The approach then is to use the power of your client’s morphic convergence experience to help you. If they are looking to buy your product, they have probably met others who are too. Waiting until after the sale or process means your client will meet more people who just bought their Prius rather than are looking to buy, which doesn’t really help you, right?
Ask for an introduction to anyone they know who they feel could use your services. Include in your introductory meeting with clients that you work mainly by referral. Tell them that you would rather spend money serving the loyal clients you have better than on advertising looking for new clients. Timing is everything. You don’t want to ask for a referral before that new client even knows what you’re about, but it can happen sooner than you probably think or are completely comfortable initiating at this point. Just ask and it will feel more and more comfortable to you as you practice it. Find your groove and it will come back to you in good will and increased sales.
2. Set up an incentive program
Reward your clients with recognition, gifts, discounts, your unfettered time, or other courteous and thoughtful gestures.
It doesn’t have to cost much, as you will find that the human touch goes a long way. People don’t refer their friends to make money, in general. They are being kind and helpful. Responding in equally motivated ways magnifies that and does more for a relationship than money. Money is nice, but giving a gift rather than offering a discount sets the stage for maintaining your price points as well as building trust and rapport.
One thing you can do here: if you have a progression of products that you sell, for example beginner, intermediate, and advanced levels, giving a gift that moves the referring client to your next level of products in addition to recognizing their generosity for referring can increase your business in more than one way. That’s great for everyone.
Another idea is to partner with other businesses that can refer back to you when developing client gift ideas. If you sell birthday cakes, include a free helium rental coupon for balloons from a florist gift shop. The client will have to pick up the helium canister and is likely to buy the fancy balloons at the same time. And, give the florist gift shop a gift offer they can give away. Be sure to make it a real gift though rather than a thinly disguised sale offer or it won’t work. But, don’t you think that client will always call you for cakes when they get such great service? Of course they will!
3. Be consistent and make it easy and fun to participate
Adding more positive experience and doing so consistently emphasizes further the advantages of interacting with you and your business.
Setting up a call-in audio testimonial line and then featuring the referring client and their business on your website or in your newsletter is a fun way to show your appreciation. People love talking about and hearing themselves, and it is so sincere and believable. And it establishes further reciprocity - you do something for them, they do something for you, you do something for them, and so on and so on.
If you are a blogger or website owner, review and recommend someone else’s site that would be helpful to your core clients and then send an email to that site’s owner with a link to your review. They are likely to refer back to you. Sometimes referrals come after you’ve given first, so be generous with your information and expertise. It will pay off.
Don’t pretend that sending a cute birthday card to your insurance clients is going to ensure you referrals. I always laugh out loud when I get an overly personal message from someone who, frankly, isn’t that overly personal with me in actuality. Consistent contact is usually better than no contact, but make the contact count. Pick up the phone for example. Even a phone message just saying hello, or inviting them to a client appreciation wine tasting, or checking on someone for no particular reason at all carries weight. Pretending you know them enough to send them a personal greeting doesn’t.
Many service providers I work with only work with referral clients. They don’t advertise, they don’t discount, and they don’t take on clients they don’t like. They don’t have to because they have implemented a referral strategy that gives them everything they need. If you try it, you might like it. 
Together, we are stronger.
Vicki Flaugher, the original SmartWoman
