What’s the Deal with Referrals?

We all understand the value of referrals. A happy customer sharing about our product speaks volumes louder than a radio ad or a “pennysaver” listing — and they might even cost less. Past customers are credible, trusted sources when new customers are shopping around.

So-called “raving fans” are a huge asset to our businesses! (Watch Scott talk about the book “Raving Fans.”)

How can we make the most of our referrals?

Obviously, we have to ask for referrals. We know you make a quality portable building — and now your customer knows too. Ask them if they know anyone who needs a building. Mention the neighbor who watched your delivery from his yard. Ask your customer to mention your business to their friends.

Keep asking. Your customer is impressed with you moved their building into their yard, that you didn’t ruin their landscaping, and that the building is nice and level. When you’ve made a happy customer, it’s a great time to ask for a referral — maybe while you’re still standing in their yard! You can also send a mailer a few months down the road, asking how they’re liking their building. Ask for referrals then as well.  If a mailer is too expensive, give them a call.

Give an incentive. A cash incentive might work. So might a gift certificate to a local restaurant, movie tickets or a gas card. Offer an entry in a drawing for a bigger prize — a big-screen TV, a playhouse, etc. — for each referral given. Make your customers “walking advertisements” for you by giving them a tote bag with your logo and information. Customers love “free” stuff!

While you’re asking … Check with your customer to see if they would like to write/record a testimonial for your business that you can use in advertisements and on your website. Even a 30-second video shot in the customer’s backyard with a cell phone is better than nothing — and those are easy to share on YouTube and Facebook.

The most important part of this referral-based lead-generation process is … manage those leads and follow up on all of them! The worst thing you can do is put in the work to get referrals and then let them waste away untouched.

When do you ask for referrals? How do you incentivize customers who give referrals?

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