How to generate new business by referrals

If you want more business - but you don’t want to spend money speculatively in the downturn - then a good referral programme is essential now. UK Companies need a recession marketing strategy that uses tried and tested methods to identify new opportunities for generating sales leads from introductions by customers, suppliers, partners and other contacts, consistently.

Probably the best leads come from referrals - people speaking to other people. Those who know you and have benefited from what you can do. You will almost certainly have benefited from this process at some stage if you are still in business today. So why rely on luck alone when you know that referrals can have a major effect for little or no cost?

National Referral Week is a coordinated response to the recession in the UK and the need to jump-start the process of growth by creating new business opportunities. Fast. Every business can participate and benefit and there is no charge in doing so. You can use the methods promoted here and also at www.makeareferralweek.com who originated the concept for this initiative in the USA.

You may have already tried your hand at developing referral business. Probably with mixed results. It was somewhat hit-and-miss affair perhaps because you did not know how to go about the process consistently. In fact, referrals to date were doubtless entirely random, arising unexpectedly from customers or other contacts talking to other people.

Certainly it is an ‘opportunistic’ process: amongst your range of contacts perhaps a small minority only will ever have a need for your services. They won’t have a need… then suddenly they will. It is critical therefore that your name is to the fore when that need arises. This means you must ask for referrals and ask regularly – or have a good strategy for consistently reminding customers what you do and that you would appreciate a referral.

So the key challenges for getting good referrals are these:-

1. How do you ask for a referral, to get the best results, and without embarrassment?
2. What do you say or do, what tools or other material do you need?
3. Whom do you contact and how? How often?
4. Can you ‘incentivise’ the process to improve results?
5. Is it just people you know – can you ask others too?

Note: a referral programme is not a substitute for marketing. Rather, it is an integral part of your overall sales and marketing process strategy – this is the sequence of activities required to identify markets for your services, then build positive awareness, generate sales leads, sell and then retain the customer. For further information: www.salesprocess.co.uk