All firms, regardless of their type of clients, grow through word of mouth. Whilst sales and marketing activities also bring in new clients, by far the most effective (and cheapest) way of ito increase fees is through referrals.
Referrals may come from existing clients, business contacts and introducers, even friends and family. Whilst you may already receive referrals from these people, if you want to increase your sales further you need to be proactive in asking for them. So, how can you do this?
Well, the obvious method is to ask the question, but it’s interesting how many people either forget to do this or don’t ask because they feel uncomfortable in doing so.
How to ask for referrals
There are several things you can do.
- If you have regular meetings with clients or business associates, but you keep forgetting to ask them for referrals, add a reminder to meeting agendas, or even just a reminder to yourself on your phone or Outlook.
- Put an article on your website, highlighting that you welcome referrals and include an enquiry form for people to fill in and submit.
- Have reciprocal referral arrangements with your business contacts and clients. In professional services firms, people are more likely to refer work to you if you also send work to them.
- Create a flier to send to clients and contacts as a visual reminder that you are looking for new business. It can prompt them to mention it (and referrals) the next time you speak to them.
- Carry out client surveys or hand out customer feedback sheets asking, amongst other things, if they would be happy to refer you to other people and if so, would they like to give that person’s name/refer a friend?
- Offer incentives to your staff – it’s surprising who they will know outside of work and who could be a future client. Don’t assume that your staff will automatically be looking to bring in new business for you, they’ll assume that it’s someone else’s responsibility (yours or the sales department if you have one). However, they are just as capable of referring work as well. Rewards or internal competitions can be a great way to achieve more referrals from staff, whilst also having a bit of fun.
- Sign up to networking organisations, such as BNI, who actively encourage referrals from their members in order to foster new client relationships among the group.
Asking for referrals is a great way to grow your business and quite often produces good quality clients. Just don’t forget to ask or remind your clients and contacts that you’re happy to take on new business!
If I can help with your referral support activities, don’t hesitate to contact me.
