For just about anything in life, putting a consistent focus on something will always yield better results. We’ve all heard that “practice makes perfect”. But when it comes to referrals, many people don’t know where exactly to focus their energy. If you are ready to start focusing on referrals, but just don’t know where; here are the three areas that you should start with. They’ll give you the biggest bang for your buck.
Get more referrals from people that have already referred.
This might seem like a no brainer, but many companies are so focused on getting the first referral from someone they forget that people who have already referred are several times more likely to do it again.Things you can do are to make sure that you’re sending thank you notes to these individuals and even calling them personally when they offer several over a period of time. And if you really want to punch it up a notch, give them an unexpected gift.
Get people who are likely to refer that haven’t yet.
This one is a little more difficult because first you need to understand who is more likely to refer than someone else. Rocket Referrals has an Intelligent Referral Algorithm that can find these people for you. But if you’re not using our system, the best things to do are find people that have given a testimonial recently, are long-time customers, or that have been referred themselves. All of these scenarios are key indicators that tell us the person is more likely to refer than someone else.Once you know who these people are, you can start to target them with special communication. For example, we suggest in a prior post to give these customers an offer they can give to friends. By focusing on people that are likely to refer, you can give them a better offer than you would if you had to send it to every customer. By focusing on people likely to refer you should also see higher conversion rates.
Close the loop on detractors.
Much of generating referrals is building up a large portion of your customer base that are considered promoters. It’s simple, the more promoters you have the more referrals you’ll receive. So, the more detractors you have the lower detractor to promotor ratio you’ll have. Many call this the “Net Promotor Score“. Simply put the higher your Net Promotor Score, the better chance you have at referrals.Detractors are identified in several ways. The Net Promotor System (NPS) has a simple way to determine this (I’ll post about that later). But if you’re not using NPS, there are other easy ways to spot them. A customer that calls to complain about an issue, or that have posted negative things on a social network could both be detractors. When you identify a detractor, you have to do something about it (close the loop).If posible fix the issue they’re having. Most of the time if you can fix an issue for a detractor, they’ll become one of your strongest promotors. And if you can’t fix an issue it’s a good sign this customer isn’t right for your product. That’s OK, not everyone is going to be right for your product. It’s best to explain this to the person and help them find an alternative. By telling them who your product is right for and helping them move on, you’re actually turning them into a promotor. They might not buy your product anymore, but because they know who it’s right for they’re more likely to send people to you than tell people to stay away from you.
Of course, if you’re using Rocket Referrals our Intelligent Referral Algorithm can focus on these things for you, automatically. But if you’re not, the point is that sometimes to make progress on something all you need to do is focus in one area over another. We hope that by pointing you in the right direction you can focus on these items and make some serious progress on your business referrals!