Two decades ago, when I relocated to New York City, I was in search of a dentist. I sought the advice of a colleague. She eagerly suggested her dentist, and to this day, I continue to visit him. My brother and sister-in-law do as well, alongside her own sister and brother-in-law.
Referrals—personal endorsements—have consistently been among the most successful strategies for businesses to gain clients, and currently, potential customers examine reviews from unfamiliar individuals online while also seeking recommendations through traditional conversations, much like the one that led me to my dentist. Here are five strategies to foster referrals:
1. Encourage clients to leave online reviews.
Marci Zimmerman, the founder of Delete, a tattoo removal service based in Phoenix and Boston, asserts that online Yelp reviews attract more customers for her than any other channel. Her team prompts clients to openly share their experiences on the internet. Cultivating a digital following can also elevate your business’s visibility in online search results without costing a dime.
2. Request referrals directly.
Business coach Jennifer Lee from Florida recommends concluding every meeting or phone call with a delighted customer (or business partner or advisor) by posing at least one of the following queries: Who else? Where else? What else? “This invites the other person to participate in your development,” Lee explains.
First, “who else” (either a person or company) might find my services beneficial? “Usually,” Lee observes, “they’ll recall someone and immediately add, ‘I should introduce you to them.’”
Secondly, “where else” should I consider networking? “If they suggest an event, you can attend and network together,” she mentions.
Finally, “what else” could enhance my outreach? “When they feel invested in your success, they will go great lengths to assist you.”
3. Incentivize referrals.
You can offer individuals a fixed payment or commission for referrals, or provide a complimentary gift or discounted service. If your business organizes educational events occasionally, consider rewarding the referrer with complimentary entry (for example, a garden center’s workshop on tomato cultivation or a boutique’s demonstration on innovative accessory styling).
4. Promote sharing.
By producing high-quality content on your website and through regularly scheduled newsletters, be sure to include “share” buttons on each page. Arrange this content so readers can distribute it on their Facebook, Twitter, Pinterest, LinkedIn, and Google+ pages effortlessly.
All major email platforms provide straightforward buttons for recipients to forward content as well. You might even say, “Enjoy this newsletter? Please feel free to share it with your fans and followers who might find it useful as well.”
5. Show appreciation to those who refer you.
When someone makes an extra effort for you, they deserve gratitude, even if the referral doesn’t lead to a sale. A personalized email or a handwritten note can communicate your appreciation for their trust in recommending you. You should mention that you enjoyed connecting with their contacts and you look forward to serving their referrals in the future.
Additionally, ensure that you reciprocate with referrals. You will gain more recommendations if you also provide referrals that align with the needs of those you’re connecting.
