Did you know that research by the American Management Association indicates that the average satisfied customer only tells three other people about their satisfactory experience. That is not bad, but wouldn’t you want them to tell more people? Getting that person from telling three to telling a lot more requires just a little effort on your part. That effort needs to focus on the giving of recognition and appreciation.
Here’s an easy secret about customers or clients who refer others that can be worth a great deal of additional customers and money to any small business. First of all, you need to understand that the person who refers once, can and will, refer more people, more times if motivated to do so. Once a customer or client has referred someone to your business, then you need to continue building that relationship source of referral like they are your best friend.
The typical small business owner, for example, knows about 25 other small businesses and people at a similar level in their own or closely related business. This number tells you that each customer or client who comes through your business could bring you as many as 25 other customers or clients. How many of you wouldn’t mind that?
When a satisfied customer sends someone to your business, that satisfied customer should immediately receive some recognition and appreciation. At least a quick thank you note or telephone call at bare minimum. That should happen right away. Also, I find that some type of thank you gift is also appropriate and works out to be very effective.
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I send clients who refer my speaking, training and coaching services various, Disney items, special cards, books, clocks, gift cards, mugs, coffee warmers, picture frames, small electronic items and even sometimes a percentage of the booking fee. Which by the way can be very lucrative. I usually recommend to my coaching clients to send gifts that you do not ordinarily sell and a different gift each time the person refers. You will really be amazed at the positive results that occur from this small and easy act of kindness.
You’d also be surprised, incidentally, at the negative results of not doing this. The client who refers once and fails to get any recognition and appreciation will probably never say anything to you, but will often say to themselves, friends or others,“Can you believe it? I sent that owner and business a customer and never got as much as a thank you.” Most likely that customer will never refer anyone again.
It’s interesting to note that a basic success principle often discussed but rarely used as a marketing strategy. Is, “Attitude of Gratitude.”
Many small business owners, professionals and even sales people have a difficult time about asking for referrals. This simple and passive strategy, will gain your business a whole bunch of new customers and clients without even asking them. Let your best customers do the asking and sharing for you. Now that would be “Magical”!