Tips to generate more referrals

If you're like most service businesses, you rely heavily on referrals. I've learned a few things from my marketing consulting clients about their referral generation strategy. At the top of the list is that there ain't one. Lots of folks simply sit at their desks, waiting for the phone to ring or Mr. Big Account to jingle their email inbox.

It's important to understand a couple of things about your clients. First, they're not all that interested in providing you with a cushy lifestyle. They're interested in having the immediate problem solved for a reasonable fee. Second, when there's not a hot project going, they tend to forget about you. It's your job to keep your name in front of them.

Keeping your name out there in a consistent fashion isn't all that tough once you have a plan in place. There're all sorts of marketing activities you can do, but it's best to pick a few that are comfortable and easy for you to implement. Test them out and track your results. Then, make adjustments as needed.

Engage your clients in conversation about what their biggest challenges are and then tailor your service(s) to help them overcome those challenges. Take your client out to lunch at least once a year and talk about what they're up against, what you can do to help and how satisfied they are with your services. During that review, be sure to ask if they have any associates that you can help out as well.

In a similar vein, try doing a survey once or twice a year. Think of it as your business' report card. Ask candid questions about how well or not-so-well you're doing. I do mine by mail and tell them they can respond anonymously. Most of the time, they'll send the survey back with some notes and their signature. When I get those, I'll call the client and ask if I can use their response as a testimonial. Testimonials can be used in introduction letters to prospects, in proposals, on your site or in email marketing, among other things. It's not a direct referral generation technique, but it helps to establish credibility and trust. Those two points are awfully important for a service business.

To encourage more referrals, do something nice for the person who sent you the referral. That can be as simple as a handwritten thank you note. Or, even better, how about popping a restaurant gift certificate or a Starbucks gift card in with the note? If you have an American Express account, they offer a variety of gift card options. Even if they haven't sent you a referral, find some ways to shoot off a thank you note or card. It's just not done that much and it can make a big impact.

Another tactic to help generate referral is community involvement and/or pro bono projects. Find some causes that are close to your heart and get involved. The folks who populate various committees and Boards of Trustees are often well connected movers and shakers in town. This has been a good avenue for me. I've worked with several local nonprofits on various committees and also as a Board member. It helped me meet some folks I wouldn't have otherwise who either became a client or gave me a referral. Plus you get those nice warm fuzzy feeling by help out others. If you're not sure where to start with volunteering, give Volunteer Match a try. They specialize in finding volunteer opportunities that match your interests and abilities.

To sum up, first put a plan together. Don't be afraid to ask for referrals. Talk to your clients and learn what's important to them and tailor your services based on what you learn. Use surveys to get the hard facts. Base your actions on facts and not whims or best guesses. Use handwritten thank you notes whenever you can. Finally, go do something nice for somebody else and your community.

Beef up your benefits

How do you describe what you do? By that I mean, when someone asks you what you do for a living at a networking event or other get together, how do you respond?

It's typical for folks to go with their job title or profession. "I'm a graphic designer," or "I'm a photographer," "Me? I'm a massage therapist," yada, yada, yada. It's usually the first thing that pops in your head. It's quick and easy. It's also really, really wrong.

Have you ever considered the replies you usually get from your response? It's probably something along the lines of "Oh," or if the other person isn't in too much of a hurry or bored to tears, maybe you'll get, "That's interesting. Would you pass the salt, please?"

Quick, un-thoughtful responses like this are the the spoiled child of the "me too" marketing mentality. That's the "no-strategy" marketing method where a business says and does the same as almost everybody else in their industry. It does nothing to differentiate you or demonstrate your value to the prospect.

Give your business and what you do some careful thought. What are you really selling? So many businesses, large and small, tend to confuse features with benefits. If you're a massage therapist, you're probably selling relaxation. An insurance agent is selling peace of mind. A graphic designer is selling a solution to a communication problem. A financial planner might be selling the creation of wealth, but if they dig a bit deeper into core motivators for people, they're really selling security, quality of life, and stress reduction. Wealth is simply the route.

In days gone by, I used to say, "I'm a graphic designer." Now I say something along the lines of, "I help small businesses and nonprofits communicate better with their audience." That's usually replied to with something like, "Really? How do you do that?" That opens the door for a conversation, which, in most cases, is a lot better than "Can you pass the salt?"

When you engage someone in conversation about your business, talk about benefits, not features. The simple truth is that most prospects could care less about how you do things or what nifty equipment you have. They care about what you can do for them.

Say you're a photographer who [finally] made the leap to digital. You invested 50 grand in all sorts of equipment. You're either tickled pink or horror struck at the prospect of surviving on Raman Noodles and PB&J for the next several years. You need to get the word out about what you can do now. So, you send out a broadcast email to your client and prospect list telling them about the cool Priceykon camera, new computer and all the other stuff. You wait for responses. And wait ... and wait some more.

A better idea might have been saying something like, "Really Good Photography, Inc. can now significantly shorten image turnover times, drastically reduce lab fee costs and even allow you to art direct your photo session from the comfort of your office. How? Our latest investment in ..."

When you focus on the benefits of working with you, instead of just saying and doing what everybody elses does, you rise about the pack and position yourself as someone offering real value for the buck. That tends to pique a prospect's interest and just might get your phone ringing.

If you have any experiences you'd like to share, or comments about this topic, please post them here. I'd love to hear from you!