subject: Business Growth Advice [print this page] Business Growth Advice Business Growth Advice
From Steve Mills - Managing Director of Steve Mills Marketing Ltd
Give this a try and if it works for you, send me a referral
Increasing your sales team
One of the easiest most cost effective and risk free ways of winning business is through word of mouth. Or, as it is known in marketing, a referral'.
Most companies we work for tell us that most of their business comes from "word of mouth" and most businesses constantly ask themselves "How do we make more money?" The answer is often, "Let's get more customers". The question is "How?"
The options are, of course, various and can include advertising, direct mail, telesales, host beneficiary relationships etc, but one of my favourite ways of marketing is referral. Why? It is one of the easiest, least expensive and most productive ways of winning new business.
I hold seminars throughout the UK and always ask delegates "Where do you spend the most of your marketing budget?" I am usually told it is through advertising, or direct mail. I then ask "Where do most of your clients come from?" and I am usually told "word of mouth". My next question is "Is there something wrong with this picture?"
I then ask "Who in the room has a systematised referral process in place in their business?" The response always amazes me. The truth is most businesses don't have any way of pro-actively winning referrals, let alone a system for it!
So my advice to you is to get a system!
Asimple system for winning business by referral
The 5 Step System
1. Ensure everyone in your organisation is aware of the power of referrals
Start by ensuring that everyone in your business reads this article and discusses its implications for your business
2. Work out how many referrals you could get from your customers
If you have 2,000 customers and only 200 of them give you just one referral. Lets say only 10% (20) of those referrals actually result in any business. Work out what your average unit of sale is (lets say it is 1,000) and you can very easily work out how much potential you have for increasing your business through referral.
E.g.
2,000 clients = 200 referrals
200 referrals = 20 sales
20 sales = 20,000
There are several key words above and they include "average". Some customers will not give you any and some will give you far more than one.
Other key words are "average sale". Don't forget most will come back to you again and again providing you do a good job. So you must know what the marginal net worth of your clients is.
You could also add the thought of winning repeat referrals from your clients, lets say four times a year. Now what would a system for winning referrals be worth to you?
One last point! How much does this cost and what is the risk? Well it costs nothing to ask for a referral and the worst thing that could happen is a client will say no!
3. The Referral Form
Design a simple form which makes it easy for people to give you all the information they may need to follow up a referral.
You could even try one of my favourite tactics, which is to hold a competition prize draw into which every completed referral form is entered.
4. The Referral Gathering Script
Here is an example of a script, which has been proven to work in many different industries and businesses. The script makes it easy to ask for referrals and easy for your clients to give them to you.
Q1 How long have you been in business?
Easy question to start
Q2 So I suppose in the time you have probably met a lot of other business people, haven't you?
Notice the words "haven't you" at the end. This is called a "yes tag" because it encourages a "yes" answer.
Q3 From what you have said during our meeting you are very pleased with the service we have provided for you. Is that correct?
You have just got your second YES!
Q4 Like most businesses we tend to get lots of our customers through word of mouth and as you stated we have increased you profit over the past six months by about 40%. I was wondering who you know who would also benefit greatly from our services?
Note the words "Who you know" and not "Do you know anyone?"
Q5 Please may I ask your advice?
This question almost always gets a "yes" since people love to be asked for their advice
Q6 Which of the ones you're thinking of would you advise me to contact first, so that they can benefit in the same way that you have benefited from our service/products?
Q7 So that it is easier for them to take my call, it's OK to use your name, isn't it?
This is a key question. Unless you can use their name when you follow up you don't really have a referral merely a cold lead. Notice how the question makes it easier for you to get permission, by explaining the benefit to their contact of using their name as a referee And notice the "yes tag" at the end of the question.
5. Keep Accurate Records
The key factor in any marketing activity is knowing what works and what doesn't. Remember, it's those who keep records that break records
Wishing you every success in winning referrals. If I can be of any help to you in your marketing, or you have a referral for me get in touch
