Why asking for referrals really works
Posted on May 07, 2015 by Clare Gallagher
In one of our publications, Three Steps to More Referrals, we discuss the fact that most clients who receive great service are happy to recommend you – yet industry figures suggest that only 20% actually do.
Why is this? Well, the simple answer is that in most cases companies just don’t ask. We always ask for referrals. They make good business sense.
Most of our business comes through referrals and we have on average a 55% conversion rate. We use a disciplined approach with three simple steps:
- Identify key referral relationships
- Understand their motivation
- Nurture these relationships
To succeed with this approach, we keep an updated ‘client referral list’ who have first hand experience working with us. They are normally a CEO or a trusted industry leader.
Our clients’ motivation in providing referrals is to give a helping hand to a friend or colleague experiencing growth challenges similar to the ones we supported them through. We share marketing content on our service Business Growth TransformerTM which makes it easy for clients to refer us.
To nurture referral relationships, we do our utmost to ensure we deliver results for each client and that the original referrer is updated on how the project went. We also stay in touch and keep referral relationships updated on what we are doing. We share new insights and make new introductions to them.
Why don't you take time to think about how a more disciplined approach to referrals could help grow your business. Asking for referrals really works!
