Using your existing client base to increase sales through Referral Marketing

According to The Harvard Business Review, referrals from existing clients are one of the best sources of leads, resulting in faster decision-making and healthier profit margins.  Why?  Because you start with the credibility of being a trusted supplier to a peer, and the cost of securing that sale is reduced.

In order to leverage the full benefit of referrals, Referral Marketing will need to be included as an element in your overall sales and marketing strategy,  and given the same due process as your other lead-generation activities, rather than just being a haphazard add-on.

Identify

Start by creating a list of existing and past clients or customers who you are confident will provide you with a positive review if asked.  Hopefully this list is extensive, because customer satisfaction should always be your priority!  

Request

Schedule time for conversations with the clients you have identified above.  These clients will hopefully be doing you a favour, and the conversation should be framed as such.  Its important that you let these clients know that there will be no sales pressure placed on anyone they recommend, simply a conversation around what you offer and how you can help them - and stick to that! It may take a few interactions, over a couple of months, before a genuine lead emerges, but if no introduction is forthcoming after 3-4 conversations, it would probably be best to drop it for 6-9 months and then try again.

This approach has the added benefit of giving you a reason to stay in touch with past clients, keeping you top of mind for when they may be ready to buy from you again.

Appreciate

Once you’ve been connected with a new referral, it’s important to thank your client!  This can be as simple as a note or phone call, or a voucher or gift, but you want to show appreciation for the referral, and encourage them to do so again!