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I want to talk to you about what is perhaps the most effective,
yet underused referral strategy that I know which is to...
...simply ask for them.
Many business owners and executives, professionals and even
sales people have all sorts of mental hang-ups about asking for
referrals. However, most of those hang-ups are invalid and I find
that those who ask, get!
Now, here's a secret about customers or clients who refer that
can be worth a great deal of money to you. Understand that the
person who refers once can and will refer many more people,
many more times if motivated to do so. Once a customer or
client has referred someone to your business, then that source
of referral should be worked like the goldmine that it is.
You should know that massive research by major corporations
to consumer direct sales companies and organizations indicates
that the average person has an immediate circle of influence of
fifty-two -- fifty-two other people! The typical executive, for example,
knows about fifty other people at a similar executive level in
his own or closely related industries. This number tells you
that each customer or client who comes through your business
could bring you as many as fifty other customers or clients.
You should also know that research by the American
Management Association indicates that the average satisfied
customer only tells three other people about the satisfactory
experience. Moving that person from telling three to telling
fifty does require some definite action on your part. That
action needs to focus on the giving of recognition and
appreciation.
When a satisfied customer sends someone to you, the sender
should immediately receive some recognition and appreciation.
Possibly a quick thank you note or telephone call at bare
minimum. That should happen right away. Subsequently
some type of thank you gift is usually appropriate and effective.
We send steaks, books, clocks, calculators, small electronic
items, knife sets, all sorts of things. I recommend gifts that
you do not ordinarily sell, and a different gift each time the
person refers. You will really be amazed at the positive
results from this kind of action.
You'd also be surprised, incidentally, at the negative results
of not doing this. The client who refers once and fails to get
recognition and appreciation will probably never say anything
to you, but to himself and often to a friend or associate he
does say, "Can you believe it? I sent that guy a customer
and never got as much as a thank you." And then he never
refers again.
Again, it's interesting to note that a basic success principle
often discussed in personal development context is also a
marketing strategy. It's called the, "Attitude of Gratitude."
Finally, if you want to even more directly stimulate referrals
from your customers or clients, you might want to consider
the second party gift certificate idea. Here's how this works:
You're a satisfied regular customer of a clothing store. The
owner of the store says to you, "John as you know, most of
our customers come as referrals from other customers and
we appreciate that and try to encourage it. This month we're
doing something interesting that you might want to help us
with and be able to do a favor for your friends too." The store
owner then gives you a ten dollar gift certificate negotiable
only by a second party that you, the customer, addresses to
and signs over to. This idea works extremely well for just
about any kind of retail business, service business, home
products business, restaurants, stores, beauty parlors, carpet
cleaning companies and so on.
If you'll use this idea, you'll again want to follow it up with
recognition and appreciation to the customer who does pass
along a coupon that is ultimately redeemed by a new customer.
In your next Successful Marketing Strategy we'll move to another
form of advertising that works for ANY and EVERY business
which is "testimonial marketing."
Dedicated To Multiplying Your 1ncome
Dan Kennedy
See the profit producing, wealth attraction resources
at
http://www.dankennedy.com/products.html
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