Can you honestly say that you ask every customer, friend and family member you have for referrals.... regularly?
The most honest answer is no as much as we may want to deny it. According to Dale Carnegie, only 11% of salespeople ask their customers for referrals.
Why do we fail to capitalize on what we know is our most valuable sales leads? Because asking for referrals can be awkward.
Even if you have an impressive product and exceptional customer service; there’s always the fear that you can come off as desperate, aggressive or even annoying to a customer.
The good news? Your customers actually want to give you referrals. According to an Advisor Impact study, 83% of satisfied customers say they would be more than willing to refer you and your company to their friends, colleagues and industry peers.
The not so great news? Only 29% of customers actually end up referring.
Why does this gap exist? Why are customers not submitting referrals if they said they would more than willing? They haven’t been asked and if they have, they have forgotten. It’s always important to remember that while your job is a HUGE part of your life, it’s not a huge part of your customers - they go home to family and their own job responsibilities. But there are ways to not only ask for referrals but keep yourself at the top of your customer’s mind without seeming desperate, aggressive or annoying.
Build Trust -
Give your customers a great experience. This is easier said than done. Truly listening to your customer and being attuned to their needs will allow you to help them efficiently and effectively. Bonus tip - remember to write down one unique item from your conversation - i.e., their dog’s name, their favorite place to eat or their favorite sports team and next time you follow up, be sure to mention that item to add a personal touch. A little goes a long way!
Present their Benefit
Start off by clearly stating the customer’s benefit and your appreciation.
“I value your trust and business every day and I know that my best form of advertising is you and all of my loyal customers. That’s why I wanted to let you know that for every friend you refer to us who purchases a vehicle - we’re going to send you real reward dollars that you can use anywhere Visa is accepted. We have some customers who have earned over $1,500 dollars through our referral rewards program!”
Ask In-person with Specifics
Do you know someone who has an unreliable vehicle?
Do you know someone who’s recently received a promotion or had a baby?
Do you know someone who’s been thinking about trading in their vehicle?
These types of specifics will allow customers to pinpoint the right friend instead of forcing them to endlessly rack their brains.
Open up channels of Communication
You can reach a wider audience that already trusts you in a matter of minutes through these channels. One to two posts a month is ideal, you don't want to overload anyone feeds with too much "selly" content but your enticing referral offer will grab their attention.
Be Transparent - Explain how the referral program works:
How does one become a referrer? Download your app or visit your website.
How does one refer? Download your app or visit your website.
How long until I receive my reward? Once the transaction is finalized, you’ll receive an email notification of your reward status.
So there you have it, 5 painless ways to increase your referral business today.