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Why You Aren’t Getting New Business Referrals

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March 24, 2010

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Are you basking in referrals for new business? Do your customers tell others how much they love you, all the time, with a nearly embarrassing outpour of enthusiasm? Doth your sales funnel overflow? 

 

There are two basic approaches to generating more business: The first is to focus on making your existing customers insanely happy, so that they want to tell others about how much they love you; the second is to simply be a resource, or be helpful, to those who aren’t customers yet. 

So if you aren’t inspiring referral love from your customers, perhaps: 

1. You don’t have a clear goal. Set a clear goal with a specific timeline – for example, you want an x increase in referrals over the next six months. You know that old adage about how you can’t get there if you don’t know where you’re going? It’s true.

2. You don’t thank people enough. Monitor the web and primary social channels (Twitter, Facebook, LinkedIn) for people talking about you or your company. Say thank you (if they are saying nice things). 

3. You don’t solve problems fast. If people aren’t saying nice things about you in those places, or elsewhere, why is that? Reach out and ask how you can help. Apologize for mistakes and solve problems so they don’t reoccur. Speed is your ally.

4.  You’re “that guy.” You sell, rather than engage. On the web and social channels (Twitter, Facebook or LinkedIn), you monitor for specific keywords relevant to your business and join relevant groups, only to be “that guy” who pops in to pimp his stuff shamelessly. Your primary goal on any publishing platform (blogging, Twitter, Facebook, etc.) should be to inform and assist, not to shill. Be approachable, conversational, and helpful. Be a resource. Engage, don’t sell. 

By the way: Does this one sound obvious? If I had a nickel for every time I see this rule shattered, I’d be writing this column from a larger office with a better view.

5. You’re too silent. When someone comments on your blog or Facebook page, respond. Talk back. Thank them for participating with a follow-up email. This is a dead-simple thing, and something a lot of people don’t do. (See “nickel” comment in #4, above.)

6. You’re a wallflower at the party. Read other relevant blogs in your industry, or by your customers, or would-be clients. Comment there, too. How? I almost want to repeat that bit about engaging-not-selling again, but I know you get it.

7. You don’t ask. Put something on your front door (if you have one) that reminds people to tell their friends about you. Put a tell-a-friend form on every page of your site. (Hat tip for these two to Andy Sernovitz.) .)  Put a special offer in easily forward-able mail and ask existing clients to pass it along, if they find it of value.

8. You never call, you never write…. Create a mechanism to keep in touch with existing customers or clients, even if they aren’t in buying mode. Perhaps you publish an “insider’s” newsletter, guest-blog on their blogs, or pick up the telephone and call every once in a while, just to say hello.

9. You don’t act generous. I know you are generous, but perhaps you don’t always show it: Are you generous with your own referrals to others? Or when someone refers you, do you go out of your way to thank them back? (An especially nice touch in this digital age is a handwritten card of thanks. The kind that arrives in the mail.) People refer people who treat them well, are approachable, and likeable. Be that person.

Your turn. How else do you generate referrals, or inspire positive word-of-mouth?

****

Ann Handley is the Chief Content Officer of MarketingProfs. Follow her on Twitter @marketingprofs.

Photo credit: FlickrPaull Young

What do you think?

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Join the conversation ( 4 )

  • Aaron Emerson 2 years 1 months and 25 days ago

    Aaron Emerson

    Thank you for sharing your very useful suggestions for getting referrals. For more tips on getting your clients to refer you new business, check out http://prevailpr.com/the-ultimate-guide-to-turning-your-clients-into-raving-referrers

  • Julie Rains 2 years 2 months and 4 days ago

    Julie Rains

    I could never fully articulate this referral method until I read The Tipping Point: but having Influencers tout your business can make a big difference. I have noticed in my business that lots of clients made (or initiated) referrals but most of those who actually did business with me came from just a handful of referrers. So, getting the right people on your side is extremely helpful.

  • Ann Handley 2 years 2 months and 5 days ago

    Ann Handley

    Thanks for commenting, Suzanne. You made a really good point: It's not just the commenting on a post or question from a social channel that's important, but *how* you comment. In other words, the approach is everything. Commenting with, "Great question! We have a solution to your problem www.ClickMyJunk.com...blah blah blah..." is less desirable than "Great question and one I think a lot of people struggle with, because.... So I suggest that ..." In 10 words: "Don't be a tool. Don't shill. Be helpful. Be human." Four more: "Keep the dialogue moving." It may seem counter-intuitive that less can be more. But (as with so many things in life) it pays off.

  • SUZANNE VARA 2 years 2 months and 5 days ago

    SUZANNE VARA

    AnnWhat a great post that makes the small biz owner take thought into really thinking if they really do this all. I know with clients I find that they swear that they are doing it all but yet the lead are not converting. But are they really doing all that you have said? Probably not. We are able to see in twitter streams or blog chats or who is asking questions on webinars (which MarketingProfs has proven to have the best ones =-). Really you do). Many times we see where people are rushing to answer a question with a link that many times is helpful but is not really able to assist as the person seeking assistance really does not want to have to click a link to find their answer. Thanking people goes a long way - without a link of course. Sending a personal email or a note shows that you are attentive and care to take the time to write. I think that the too silent is a big factor in business or lead gen. as many times people answer questions with a closed answer that does not generate a conversation. Ask questions or provide answers that are open ended that generate a response. We know that business or leads happen when we are able to provide answers but yet also ask more questions.Love the post from a biz standpoint to ask myself am I as the biz owner doing it all and also fir clients how can I help them to do it all. @SuzanneVara

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