One of your key metrics as an executive or entrepreneur is how fast and profitably you’re able to grow your business. One of the easiest and least costly ways to grow your business is through referrals from existing and happy customers. Referrals are the platinum standard for business growth because they have a near zero cost of acquisition and the sales cycle is reduced significantly.
The power of a referral is as simple as a good friend telling you about their favorite new restaurant, movie, financial planner or car dealership. The likelihood that when you’re in the market for a movie, restaurant, financial planner or car dealership, their recommendation will prompt you to act on their recommendation.
How can you increase the number of referrals you receive each month to an ideal customer? There are three ways to increase the number significantly.
Raise The Bar
This is the foundation for getting referrals. If you do work that makes the life of a customer easier and better you are doing work that is referable. A dentist for example who comforts a nervous patient and makes their dental experience pain and anxiety free has raised the bar as far as what the patient thought was possible, and by doing so has opened the door to receiving referrals.
Key Question: What is the one area of your business you can or need to raise the bar, and by doing so will have an advantage over your competitors?
Elevate The Customer
This second step seems to be below some businesses. While in San Francisco recently I had two dining experiences in highly regarded restaurants. The first was in a very good restaurant with excellent food, but whose attitude from the hostess to wait staff was one of “you are lucky to be here.” The customer was in many regards an interruption and not a welcome guest.
The second restaurant was equally impressive in their food quality, but whose attitude was “we are so lucky to have you here.” They smiled, enjoyed their work and were enthused about making each guest not only feel comfortable but important and welcome. They believed that the customer truly came first and it showed.
Key Question: How are you exemplifying that the customer comes first in your business? Is this distinctive in the eyes of your customer? Would your customer agree with your assessment?
Blow Your Own Horn
The hard truth is that nine out of ten of the businesses I’ve worked with don’t ask for referrals because they’re afraid to ask. They’re afraid they will be turned down, make the customer feel uncomfortable or possibly lose the customer permanently for having asked. So they sit quietly on the sidelines hoping they will receive referrals.
When you believe that you provide exceptionally high value, your reluctance to blow your own horn goes down appreciably. In last weeks Monday Morning Mindset I outlined how you can gain a competitive advantage. Adding to that, I will say without hesitation or reservation that knowing your competitive advantage and what value you provide is the catalyst for sharing prominently what you do and how you help customers. You are not boasting or bragging, but rather helping people to become more successful.
Key Question: How confident and comfortable are you in communicating your value in clear and compelling ways? Depending on your answer, how much will your answer impact you blowing your own horn?
Regardless of your role in an organization, receiving a consistent flow of introductions and referrals to your ideal customer is essential for success and growth. Which of these three steps do you need to address this week?