The Power of Referrals

In business, there are only so many ways to acquire business. New business is not easy to come by, especially in a recession, and most business owners look in different directions to find new sales.
However, one area that can be overlooked is the process of getting referral business. Referrals are an excellent way to grow your business for three main reasons:

1. The cost to acquire – Or should I say the lack of cost. That’s right, in some cases these referral prospects require minimal or no money to find. You might spend some money for postage if you want to mail some information, but it might be as simple as a phone call.

2. Approval – When you reach out to a prospect that was referred to you, you reach out as someone who already comes with the important stamp of Approval from the friend or colleague who referred you. The significance of this fact can’t be overstated.

3. Ease to get – You can really attempt to get as many referrals as customers you have in your base. What I mean is that you can call every customer of yours and ask them for a referral. You can start and ask for 3 referrals from each customer and hope to get at least one. If they are a happy customer the chances are good they might give you at least one name.

Why don’t some business owners use this sales strategy more? Well, it can feel awkward asking directly for referral names. This one objection can prevent many businesses from growing in this manner. However, consider this thought. If your customer is happy with you and your company, then why wouldn’t they want to pass along a friend or colleague’s name? Also, if they don’t want to participate they can easily decline your offer.

This method can add some quality customers to your account base and some revenue to your bottom line.