Making Referrals
Happen!
Victoria Downing, Remodelers Advantage Inc.
Referrals and Growth
 Primary Engines of Growth
 Excellent customer service and referrals
 Savvy businesspeople spend 4...
From a Survey from SunTrust Bank
 51% of new business growth comes from referrals
 55% view word-of-mouth as the most ef...
Not a Regular Part of Business
 Fewer than 20% have a formal referral program in place
 Only 6% think asking for referra...
Why Referral Leads?
 High Quality Leads
 Third party testimonials
 More effective tactic
 Lower Cost/Higher Profits
 ...
Why Referrals Don’t Happen
 Here are just some of the reasons that referrals don’t
happen:
 You’re not committed!
 You ...
Six Referral Building Strategies
 Create a system to ask for referrals
 Measure and track your best referral sources
 C...
Create a system to ask for referrals
 Only 6% make asking for referrals a priority!
 94% forget or feel uncomfortable
 ...
Create a system to ask for referrals
 Automatic part of your client contact
 When?
 How?
 Ask for their help
 but let...
Measure and Track your Best
Referral Sources
 Create Advocates/Net Promoters
 Net Promoter:
 A loyal enthusiast who kee...
The Ultimate Question:
Author: Fred Reichheld
 Would you recommend our company to a friend?
 Ranked 1 low-10 high
 Thre...
Create Formal Referral Programs and
Incentives
 Need a clear process for how referrals are handled
 Offer reward to refe...
Communicate Better
With Customers
 Share your vision!
 Business owners typically tell fewer than 10 people that
they wan...
Develop Referral Networks
 Reach out to local partners and centers of
influence
 Who reaches dozens of prospective custo...
Create Positive Reasons to Reach Out to
Customers
 Stay Top of Mind!
 Reach out to them 4-12 times each year
 Numerous ...
Building A Stream of Referrals:
Fantastic Customer Service is a Must!
 Guild Quality
 Independent Customer Surveys
 www...
Building A Stream of Referrals:
Fantastic Customer Service is a Must!
 “I saw them around my neighborhood doing work,
and...
The Other Side of the Coin
 “The job ran a lot longer than it was supposed to. I feel like they
worked on it in their spa...
What We All Want To Hear
“This is my third time being with them – I wrote
them a letter of appreciation every time. Their
...
Putting the Service-Profit Chain to Work
by James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and L...
Where do you stand now?
 To find out
 Start with an audit – a survey of your current customers
 Pay attention to areas ...
Make Referrals Happen!
 Be committed to building referrals
 Create a system to attract them
 Measure your results
 Foc...
Register for FREE today at
www.pronetwork.com
> Earn valuable rewards
points on your Simonton
Windows brand purchases!
> G...
http://bit.ly/rai44
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Making referrals happen simonton version [compatibility mode]

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Making referrals happen simonton version [compatibility mode]

  1. 1. Making Referrals Happen! Victoria Downing, Remodelers Advantage Inc.
  2. 2. Referrals and Growth  Primary Engines of Growth  Excellent customer service and referrals  Savvy businesspeople spend 43% of their time on customer service  Same people don’t invest in developing referral leads  You Need A Structured Referral Program!
  3. 3. From a Survey from SunTrust Bank  51% of new business growth comes from referrals  55% view word-of-mouth as the most effective marketing investment they can make  Over 9 times more effective
  4. 4. Not a Regular Part of Business  Fewer than 20% have a formal referral program in place  Only 6% think asking for referrals is an important part of generating referrals  40% of businesses don’t track or measure referrals at all  Fewer than 20% are building referral networks with influencers
  5. 5. Why Referral Leads?  High Quality Leads  Third party testimonials  More effective tactic  Lower Cost/Higher Profits  Great return on the dollar  Easier sell  Less time needed  Leverages relationships you already have  More measurable
  6. 6. Why Referrals Don’t Happen  Here are just some of the reasons that referrals don’t happen:  You’re not committed!  You don’t ask for them!  You’re not sure your customers will give them if you do ask!  You’re asking the wrong way!  You don’t have a clear process in place!
  7. 7. Six Referral Building Strategies  Create a system to ask for referrals  Measure and track your best referral sources  Create formal customer referral programs and incentives  Communicate better with customers and influencers  Develop referral networks with local partners and centers of influence  Create positive reasons to reach out to customers
  8. 8. Create a system to ask for referrals  Only 6% make asking for referrals a priority!  94% forget or feel uncomfortable  Get over it!
  9. 9. Create a system to ask for referrals  Automatic part of your client contact  When?  How?  Ask for their help  but let them know it’s OK to choose not to participate  Let them know you want to help their referrals  Explain the process  Describe customer you want  Be specific!
  10. 10. Measure and Track your Best Referral Sources  Create Advocates/Net Promoters  Net Promoter:  A loyal enthusiast who keeps buying from your company and urges friends to do the same
  11. 11. The Ultimate Question: Author: Fred Reichheld  Would you recommend our company to a friend?  Ranked 1 low-10 high  Three kinds of clients  Promoters 9-10  Passive 7-8  Detractors 6>  80% of referrals come from promoters  Companies with more promoters grow revenues and profits faster
  12. 12. Create Formal Referral Programs and Incentives  Need a clear process for how referrals are handled  Offer reward to referrer, referee or both  Include promoters in referral program  Testimonials  Marketing tools  Open houses  Trade show booths
  13. 13. Communicate Better With Customers  Share your vision!  Business owners typically tell fewer than 10 people that they want to grow!  Tell your Circle of Influence  Tell them how they can help  How many referrals you would like?  What does the perfect customer look like?  How will their referrals be taken care of?  How will they and their friends benefit from this?
  14. 14. Develop Referral Networks  Reach out to local partners and centers of influence  Who reaches dozens of prospective customers? Insurance Bankers Real Estate Agents Accountants Hairstylists Ministers Car Dealers Who else?
  15. 15. Create Positive Reasons to Reach Out to Customers  Stay Top of Mind!  Reach out to them 4-12 times each year  Numerous tactics can be used  Catalyst Events  High profile events that people want to go to.  Don’t be cheap.  Find a way to invite the influencers* and high quality prospects. Influencer: Someone who knows everyone, who is involved in major charities, who can spread the word about you.
  16. 16. Building A Stream of Referrals: Fantastic Customer Service is a Must!  Guild Quality  Independent Customer Surveys  www.GuildQuality.com  Helps business owners measure levels of customer satisfaction in a variety of areas.
  17. 17. Building A Stream of Referrals: Fantastic Customer Service is a Must!  “I saw them around my neighborhood doing work, and I asked the people who worked with them if they would work with them again.”  “A friend referred them.”  “I heard about their work through my customers in the mortgage business.”
  18. 18. The Other Side of the Coin  “The job ran a lot longer than it was supposed to. I feel like they worked on it in their spare time.”  “There was a big discrepancy between the time they said it would take to do, and the time it took.”  “We had to repeat things three or four times. They made us feel like we were bothering them by following up.”  “When we needed something we had to call them over and over and wouldn't likely get a response.”
  19. 19. What We All Want To Hear “This is my third time being with them – I wrote them a letter of appreciation every time. Their workers are outstanding, the management is outstanding, the quality of work is outstanding. Everyone says "yes sir“ and "no sir." “It is not often in this kind of business that you can get a customer who is totally satisfied. They were here when they said they would be here, they finished on time. “They are just a great run company and the owner is going to be a rich man.”
  20. 20. Putting the Service-Profit Chain to Work by James L. Heskett, Thomas O. Jones, Gary W. Loveman, W. Earl Sasser, Jr., and Leonard A. Schlesinger Harvard Business Review Publishing The Service-Profit Chain 1. Customer loyalty drives profitability and growth. 1. A 5% increase in customer loyalty can boost profits by 25-85%. Wow! 2. Customer satisfaction drives customer loyalty. 3. Value drives customer satisfaction. 4. Employee productivity drives value. 5. Employee loyalty drives productivity. 6. Employee satisfaction drives loyalty. 7. Internal quality drives employee satisfaction.
  21. 21. Where do you stand now?  To find out  Start with an audit – a survey of your current customers  Pay attention to areas of deficit  Pull your staff in to help you create systems to improve
  22. 22. Make Referrals Happen!  Be committed to building referrals  Create a system to attract them  Measure your results  Focus on customer service to build promoters of your business  Pay attention to how the service-profit chain affects your company
  23. 23. Register for FREE today at www.pronetwork.com > Earn valuable rewards points on your Simonton Windows brand purchases! > Get hot homeowner leads direct from the “Where to Buy” listing on Simonton’s site! > Receive exclusive training through Simonton University! > Get access to expert selling advice, Simonton product updates and marketing materials!
  24. 24. http://bit.ly/rai44

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