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What Is a Quality Referral?

Back in the Vic Tanny days. Huh?  What's a Vic Tanny Vern?  

Well kids it's a health club you may know as Bally's, yes that Bally's.  Well getting back to the story about quality referrals.  When I worked there as a personal trainer the way you made most of your money, that is if you wanted to actually make money was to get referrals from members of the club.  

Getting referrals wasn't a bad practice but it was the way in which we got them and the shear fact that we were on a quota system to get as many as we could every day.  We would almost chase members down asking for the phone numbers and contact info of any friend or family member the would be willing to sell-out so we could try to get them in the club.  For every 20 or so people you talked to about one would join.  Did we make money?  Yes but did we build relationships?  No! and that's because there wasn't much quality in our process.

There is a real difference between a good referral that's going to help you reach your business goals and a weak referral that's not. Referrals are all about quality, not quantity, and you want to grow to understand this qualitative difference in order to learn how to develop better referrals. 

Referrals Are about Relationships

I'm pretty sure you think the above is a true statement right?

Yes.  It's very true and I'll tell you why.  As I was telling a great group of business owners I was speaking to about building communities from their customer base the same goes for referrals.  

The foundation of a quality referral is the relationship you have with your customer. You both need to understand each other. A customer or client who doesn't understand you or your business isn't going to be able to fully represent it to others. This won't get you referrals.

By the same token, they need to feel that they fully trust you and can stand by you. They're vouching for you and to some extent their referral affects their credibility with their network and 9 times out of 10 that network is their family or friends.

Good Communication

Since it's all about the referrer (Your client /customer) understanding your business, it's essential and I would go so far as to say vital that you communicate the details about your business to these potential referrers in a way they can easily repeat.

Tell your referrers exactly what you're looking for in an ideal customer. I've found it helpful helpful to say something like, 'I really need more people like you.' If they can understand why your business appeals to them personally, this can help them identify others who would be good prospects.  It's personal and you've planted the seed that they're the perfect customer or client.  You're playing to their ego and they will work much harder to prove you right.  You just created an advocate!

What’s in it for Them

WIIFT (What's in it for Them) is a great approach when you start working the referral angle.  Back in my retail electronic sales days that's what we called it.  You have to know and communicate to your customer the real benefit of helping you by referring business.

Do they get money off a service or earn points towards a future purchase?  That's of course up to you but people really get into earning prizes and the gamification of gathering referrals for a business they can believe in.  Have you ever gone into a retain store or someplace like that and as you're checking out they as you to join some program and pay $20 or more?  They usually follow up with you can earn "blah blah blah" you get it.  They lost you at $20!  

Why did they lose you? They never actually had your interest so you have no reason to even listen to them.  They asked before giving and before earning your trust.  Yes they have your money but that's not the goal.  The goal is to earn your trust so you send other ideal customers back into their store.

Your Tracking System (Keeping Up with the Jones's)

Once I've actually landed a great referral I make sure I have a way to cultivate it and of course keep up with that person so they can in turn start referring other quality leads my way.  Something I've found very effective is to separate high-quality referrals and lesser quality referrals into two flies.  

Some people use CRM software that can track customers plus a ton of details.  You guys know me so I go old school and stick them in an excel spread sheet. Either way once you start tracking your referrals you'll see patterns emerging in regards to which referrers bring you more quality referrals and increase you see in your business because of it.   This is helpful in measuring performance and analyze results to discover what works best.

 

5 Ways to Use Your Content to Drive More Customer Referrals

 

Content is King we all know that by now thanks to Gary Vaynerchuck.  Let's review five easy ways to leverage the content you create that may result in more referrals for you.

 

Customer Specific Emails

 

Segment your email list to a very specific groups that you believe could help you get referrals. A simple VIP list like the one I mail out from time to time that sends exclusive information, discounts and as I mention later special offers to customers that that have sent you referrals in the past. Make it as personal to each person as you can.

 

Customer-Only Facebook Page

 

Create a page or group on Facebook that's just for your customers. A specialized page or group gives customers and clients the chance to discuss your business, its products and related topics. You also have an opportunity to offer content specially created for them. You do have to make sure that you only grant access to customers that are supportive of your business.  This isn't a general Facebook group for everyone that does business with you. Think of the group which I prefer as an exclusive club.

 

Customer Special Offers

 

Create offers that are only for your loyal customers. Reward their loyalty, and those rewards will go a long way in getting them to send you more referrals. Try to think of a product, deal or enhancement on an existing product that would be particularly useful for your current customers and then surprise them with it.  

 

Answer Customer Questions

 

Take advantage of all of your opportunities for communication with your customers and give them a forum for asking questions as I mentioned above. You can do this anywhere you currently communicate with them online such as your blog, your site, social media, etc. You can also answer their questions through webinars and videos. I'll use myself as an example of how to implement this strategy.  

Did you know I have a bi-weekly call I started  just over a month ago.  It's call Free Friday Coaching where I answer a question I received durning the week for 30 minutes.  Callers can also ask questions live on the call.  It's a way of giving back and adding value for anyone that's considering hiring me as a coach You can take these specific questions and turn them into content you can publish separately.

 

Interview Customers about Their Experiences

Now this of course is my favorite one!  Get a camera or jump on Skype or just a conference bridge and let your customers speak for themselves. Interview your customers about their experiences using your products or services. Get them to talk about how your referrals have helped them. Focus on how you've solved their specific problems.  It's rare that most customers will turn down the opportunity to be interviewed and get their 15 minutes of fame.

I really hope you enjoyed this post and if you're looking to build a referral program for your business or would like to access to the entire KickStart Referral program please let me know by sending me an email here:Email Vernon 

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