5 Ways to Increase Your Customer Referrals

There is nothing better than building a steady pipeline of customer referrals to subsidize your marketing. Granted in the business of debt and mortgage you are unlikely to develop this into your primary marking channel, but it can be a powerful one.

First, let’s take a look at why you would want to concentrate on this in the first place.

• Referrals convert at about 50% or better
• People that are referred tend to refer others
• Referral process builds stronger customer relationships
• It is a nearly free marketing channel

Hopefully you are convinced it is important. Now lets look at how to structure your referral engine!

1. Be ready to say thank you. Expect to get referrals and have a plan on how you are going to thank that person. Often a simple thank you note with your business card (hopefully eliciting another) or your website URL enclosed is sufficient. If it becomes a multiple event a nice gift card to Starbucks or a local restaurant is always a nice touch.

2. Engage people, get them talking. Nothing gets referrals easier and faster than “small talk.” If you can get people chatting about personal stuff you are going to build trust and they are going to drop names. You see when people are engaged in conversation they want to participate, they want to contribute and often that turns them into a friend wanting to help.

3. Don’t be afraid to ask. This is the number one failure in referral systems. Simply not asking for a referral. Most customers are so focused on their own problems that they rarely think beyond themselves. However, you will be amazed at what a simple observation that you can help others like them will yield. Especially if they are pleased with your service they will try hard to repay that favor.

4. Meet your customers face-to-face. In the age of Internet and cell phones it is tough to get face-to-face with a client, but if you do it is almost instant trust. Customers are appreciative when you make that extra effort to come out and meet with them. So, if you are in the mortgage business go to the closing at a minimum. If you are in the debt settlement business try to get an appointment at their dinner table.

5. Keep in routine contact. Referrals most often don’t come immediately. That is why it is important to say in regular contact with your past clients. Drop them a note on a regular basis, send them an email, or give them a short call. This little reminder will put you top of mind when someone crosses their path.