Did one of your customers ever recommend your product to a friend?
If so, there’s a good chance that this friend continues to make purchases.
If not, what was the problem or disconnect?
If the list is many but let us take a closer look.
Whenever a customer tells someone else your company has great products – do you communicate with that customer? Do you communicate with the potential customer?
If there is a pause in your thought process, then your company needs a Referral Cop.
One. A channel of choice
When you ask your customers for referrals in a nonchalant manner, you may uncover a few. You can significantly increase your referrals when you and your marketing team take obtaining them more seriously.
Some businesses start by using the postal mail. Businesses that deal with products and services where trust is a main issue, find that the mail is a good channel.
An email of thanks is another good channel. Reviewing your customers profile in your database may provide the right connecting channel.
Two. What about the reward
Whatever channels you select, there is no better way to speak to your customers. Then, reward your customers for sending you referrals. Hint: Reward their effort, not just the outcome.
If the prospects do not buy, it is not necessarily your customer’s fault. Don’t proceed down this path because you will probably not receive many referrals.
Reward your customers who send you names and numbers of the referral. This is called the direct referral. So, what is the reward? You know what your closing ratio is, which tells you how many referrals will turn into sales. In a direct referral, the closing ratio actually goes up.
Imagine being able to send a message, “Your friend, Alex Brown, gave us your name. Alex likes our product and thought you would as well.” You can also use more personalization if you like, but the result is catching the prospect’s attention.
Your outcome allows you to determine the best reward. You may even determine a few levels of appreciation or depending on your product, an award program.
Referrals are definitely worth the effort. Depending on your business model, you may be able to automate the process. However, if you’re like me, teach your staff to make sure the follow-through is complete. Whenever communication takes place between your staff and a customer, it never hurts to ask for a referral.
Want to learn more? Please visit DMCM products and while there, download a free copy of Direct Mail Success. Please look over the variety of content programs that are available. Yes, there’s more than enough to enrich your lead generating referral program.
Download a copy of a recent edition of Direct Mail Success, by clicking on this link. There are a variety of uses, such as a marketing tool for people in the direct marketing mail industry or people who want to learn more about the techniques of direct marketing and response.
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