I recently read the results of a survey that asked major companies where most of their customers come from. A whopping 85 percent said referrals are their number one source of new business. Does that sound like your business? It certainly sounds a lot like ours!
Where do referrals come from? Your current customers of course. They are the ones buying from you and know what it is like to do business with you. How do you get them to give you a referral? Reward them.
You need to set up a formal referral program and stick with it. As an example, Fredericton Volkswagen has a referral program where, if you refer a new customer to them and they buy a car, you receive a $300.00 voucher for parts or service. If you refer a new member to the Fredericton Chamber of Commerce, you receive a $50.00 gift card for a local restaurant.
Does this work? If you have buy-in from your staff it does. We have a client that offers professional services and they have a formal referral program in place. They have been running it for over a year now and they are averaging over 100 new patients per month.
Is a new car buyer worth $300.00 to a car dealer? You bet it is. Is someone referring a new customer to your business worth a $50.00 gift card? You bet it is. Take a look at a formal referral program for your business. It will pay off in the long run.