I was recently asked by an industry connection about my thoughts on referral business. Many people assert that they’re getting most, or all of their business from referrals. If you don’t do any advertising, marketing or promotion, then there’s not many other sources for you except referral. However, most businesses I know are doing other things to get the word out, they just can’t connect the dots from those things to their bottom line.
One is the loneliest number
When someone gets engaged, they’ve likely already been exposed to many wedding service providers. Whether as a guest or part of a wedding party, or through their many friends, relatives, co-workers and acquaintances (at the gym, at church, etc.) there are countless people who are ready and willing to put in their 2 cents on whom you should use. The thing with referrals is that they’re not created or given equally. Merely getting a name from someone is good. Getting a name with an editorialized opinion is better. Having that same name supported by seeing the company online, reading their reviews, seeing them in a magazine, at a bridal show, in their inbox and in their mailbox, supports that the referred company is more legitimate. Customers don’t care if you “need” the business. What they care is that that can trust you with their most important day.
The more the merrier
There’s a debate in marketing as to how many exposures someone needs to a company to breed familiarity and trust. Some say 3 times, some 7, some 12. One thing is clear, the more times someone sees, reads or hears your name, the better. If you’ve ever asked around for a referral to a service or product, you know that you usually get way more than you need. After all, you really only need one to fulfill your need. However, you keep asking to get validation. Social proof is one of the best validations (reading online reviews, getting referred by real friends, or virtual friends). Hearing the same name more than once is validation. Hearing it more than once and then seeing it everywhere you look solidifies that company as the best solution.
Are referrals your best business?
Just because someone was referred to you doesn’t mean they want what their friend had. It doesn’t mean their budget is the same. They will often think you charge less than you really do because their friend may have contracted with you a while ago (maybe months or years ago) and their friend rarely remembers the total price they actually paid, with all options and things they added later. Referrals are not slam dunks either. Just because their friend liked you doesn’t mean they will says Jake Whitmer, financial analyst at Sambla.
Can you increase how often you get referred?
Getting referrals is great, but can you influence people to refer you more often? We all have a limited supply and the key to having pricing power is to increase demand. There are a few ways to get more referrals. You can ask for them, before, at and after the sale. Asking before the sale helps them validate that you’re a good choice. Asking at the sale helps to validate their purchase decision. Asking after the sale help reduce buyers remorse.
Simply ask “Who do you know that would also like to have [insert your main benefit here – i.e. “=’a more fun, stress-free, wedding day’]?” Notice I didn’t say “Do you know anyone…?” as that is too easily answered with “No”.
They listen to radio station WiiFM – What’s in it for me?
You can offer an incentive for people to refer their friends and connections. Sometimes it means added value, or cash, to the referrer. Sometimes it means added value, or cash, to the referee. Sometimes it means added value, or cash, to both. That’s your call, but everyone likes getting added value, and you like getting strong referrals, so this is an option that works well for some. We moved into a new house 3 years ago and we still get mailings from the builder asking us to refer our friends, for which both we, and they, will get a cash incentive.
Here, there and everywhere
One of the best ways to increase your referrals is to stay top of mind with your past customers and prospects. Be on the websites they visit. Be at the bridal shows where they go. Remind your past customers that you’d love the opportunity to work with their friends and relatives, to provide them with the same high level of quality and service they received. You don’t have to offer them anything, as long as you stay top of mind.
If you really think that you’re getting all of your business from referrals, are you brave enough to remove all of your online listings, paid or free? Are you willing to unlist your phone number? Are you willing to stop going to bridal shows or advertising in magazines? Referrals want to know, and trust, that you’re the best solution for their needs. When do you stop asking for referrals? When you want to stop getting them.
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Would you like an independent assessment of your marketing? Want to hear easy ways to get your website to convert more of the traffic you’re getting, including referral traffic, into inquiries and business? Would you like me to present about referrals to your team, company, conference or association? Contact me, use the short form to the top right of this page, or call 732.422.6362 international enquiries 001 732 422 6362