Musings at the intersection of business and life

Referrals rock

Growing a Business
June 7, 2009 by Peter Economy

Yesterday my wife and I threw a party for my son's "graduation" from fifth grade. Next year he and the rest of his class -- most of whom showed up, with parents and siblings in tow -- will fragment as their paths take them to a variety of different middle schools in the area. After completing my duties on the grill, it was time for me to socialize with the guests. I was talking with one of the moms of one of my son's classmates about just how tough it is getting new business in a crowded field. I told her that I am absolutely convinced (and I am), that if you're really good at what you do -- and if you do what you promise, on time and on budget -- then you'll have more business than you'll know what to do with. And much of this business will come from referrals from happy customers and clients.

Referrals -- when a customer or client recommends you or your business to a friend, relative, colleague, or coworker -- are a particularly powerful source of new business. Potential customers come to you already pre-sold to some degree because they trust the person who suggested they work with you, and -- perhaps best of all -- they don't cost you a dime. Do good work, do it on time and on budget, and the referrals will come.

There are a few more things you can do to improve the chances that you'll get more referrals besides doing good work and being on time and on budget. Things like:

  • Be easy to work with. People like to work with people they like and respect. If they don't like you, not only will they look for someone they do like to take your place, they definitely won't be making any referrals for you.
  • Deliver more than you promise. One of the easiest ways to make a favorable impression on your clients is to delight them by delivering more than you promise. How do you feel when you receive an order sooner than promised, or how do you feel when the quality is better than you ever imagined it could be? Good, I'll bet, and ready to recommend the company to your colleagues.
  • Keep in touch. Call customers on the phone on a regular basis, send them periodic email updates on your progress, and consider sending them a handwritten thank-you letter when your work is complete. The more memorable you make yourself and your work, the better, deeper, and longer lasting your business relationships will be, and the more often your customers will refer you to others.

Future business is important for any company -- it's what builds growth over the long term. However, to most effectively bring in future business, you've got to take care of your current customers by providing them with the best service and products possible. Take care of your current customers, and chances are, they will take care of you.

 

Related tags: business, growth, marketing, referrals

Comments

Interesting, especially when I think of this in terms of education and how parents and students are our clientele. I can see your three bullet points being adapted and working for this profession as well! Be flexible, exceed expectations, and keep the lines of communication open. Thanks!

6:21 p.m. | June 9, 2009 Donna Rossi

Good point, Donna -- this works for other kinds of relationships, not just business relationships.

10:28 p.m. | June 12, 2009 Peter Economy
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