New referrals from customers vs. advertising

[TDtech32]

Trying to expand my customer base and plan a budget for it. Anyone care to input on percentages of new referrals coming in from customers vs. advertising?

[chrisits]

Depending on the channels you decide to work with advertising can be very expensive... We've been very lucky to have most of our new customers come in from customer referrals. If you invest enough in providing good service to your customers you’ll gain their long-term commitment as well as new referrals.

[smelvin]

Referrals win - everytime!

I have a few tips, if you don't mind...

1. When you have a new customer there is usually a honeymoon period when they think your great and everything you do for them is appreciated (don't worry it does wear off!). This is an excellent time to strike! First you ask them how your service has been of benefit to them. Because your in the honeymoon period, they will invariably say something positive. At this point your job is, if they haven't already, to get them to be specific. Once you have that the next question is crucial, ask them if they know two other businesses that would benefit from your service. Then say nothing! You will get at least one very good referral!

2. If you get a referral (see point 1) from wherever, follow up, follow up!!! Within 48 hours. Your chances of conversion diminish the longer you leave it.

3. When asking for referrals (not like point 1), for example at networking events, be specific. Don't say 'anybody'. Anyone who goes to things like BNI will know exactly what I mean. When you say 'anybody' you are not making it easy for people to find business for you. Draw up a list of targets, do your research on them to qualify them, then use these at networking events.

4. Get involved with your local business community either through organisation such as BNI or less formal networking organisations such as Chambers of Commerce.

5. Find business for other people. This is really powerful and is the basis of how organisations like the BNI were setup. 'Givers gain!' If you find business for someone else they will feel duty bound to find business for you.

Oops, I have went on a bit there, sorry. As you can tell I am a member of the BNI (7 years) and organisation like these are great for increasing your sales, but like everything else you only get out what you put in.

Above all else be a farmer not a hunter!

I could go on, but I think other people should share their ideas.

Cheers

Scott

[TDtech32]

@chrisits: thanks!

@smelvin: great tips! thanks for the advice.

[nattivillin]

@smelvin:

Which BNI group are you a member of?

[smelvin]

@nattivillin:

Sorry haven't been on for a while. I am in the Rothes Chapter in Fife, Scotland. You?

[nattivillin]

Western Hills chapter, U.S, Ohio

[bpennell]

+1 on BNI. It's a great investment.

[bpennell]

+1 on BNI