Asking for Customer Referrals

One of the best sources for new business is from your existing customers. If you've provided them with a top-notch product or service, your customers will be happy to give you repeat business. But there's also another way customers can help you grow your business, and that's by referring you to their family, friends and business associates.

One of the most overlooked source of new business is referrals from customers. I don't know if business owners just forget this important step or they are too embarrassed to ask for the referral. Either way, if you don't ask for a referral, you're ignoring a very powerful way to grow your business.

Think about it. Who better to refer your business to others than someone who has had first-hand experience with your excellent products or services? And if you've provided that excellent product or service, your customers will be more than happy to refer you to everyone they know! After all, you've helped them, and in doing so, you've created a sense of loyalty in your customers. They want to see your success as much as you want your success.

Asking for referrals is not a complicated process, but you do have to ask. Here are some quick tips on how you can make asking for referrals part of your sales process:

• If you've got a brick and mortar, create a postcard that's handed to your customer at the point of sale. The postcard should give special offers to the person being referred (like a free or discount offer) and the person doing the referring (a certain amount off on their next purchase). Make a point of mentioning the postcard so the customer will have it fresh on his or her mind.
• Create a survey that solicits feedback from your customer. At the end, ask for the name and contact information for one person they believe could use your product or service. Also thank them for getting in touch with the person they refer to let them know you'll be calling.
• Call your customer to thank them for their business and ask for a referral.

Regardless of the method you use to solicit referrals, it's important to remember to create and institute a process in your sales cycle. If you don't, you're leaving valuable business on the table.