While Tucson is a great word-of-mouth town, it is the referrals that ring your cash register.
Bill Nordbrock, president of the Tucson Business Club and a SCORE member, shares suggestions to help small businesses build their referral business.
“Business owners who generate business by referral see much higher closure rates and lower customer acquisition costs. Consumers who do business by referral appreciate quality, value and service and are willing to pay for it. This results in higher profit margins and profitability for the business and a better experience for the consumer,” he said.
If you want to generate more referral business, try these tips:
1. Provide exceptional service. No one refers business to you if they did not enjoy the experience. Make sure a customer is satisfied before asking for a referral.
2. Let people know how important referrals are to you. Put it on your website, on your business cards and in your email signature.
3. Make it easy for customers to provide referrals — via email or a link to a very short form to complete or a reply card sent with your invoices.
4. Join a quality referral group or Chamber of Commerce to leverage the collective connection of all members.
5. Seek referrals only from your most influential (who may not be your best) customers, those people whose opinions carry the most weight with other people in your industry, community or customer base. Consumers trust recommendations from people they know.
6. Appreciate your customers’ referrals. Offer a discount coupon or credit if a referral becomes a customer. This keeps you top of mind next time they have an opportunity to refer business to you.
7. Follow up. Develop a system for contacting all referrals within one week of getting the lead to increase your chances that they still need what you have to offer.
If you are not using referrals, you are overlooking one of the most powerful ways of building your business.
