We all know that referrals represent the fastest and easiest way to add new clients, right? And, generally these clients come with little or no cost. But the sad reality is the vast majority of businesses lack a formal referral program, and worse, are not even asking for referrals at all, even when the client is a raving fan.
Why?
Well, a few years ago I surveyed thousands of businesses to learn why they were not effectively deploying the referral strategy in their business. And from this I created my “16 Reasons Referral Systems Fail – How to effortlessly create a flood of new clients with just a few small shifts.” (long title, I know).
Eight of these focused on Getting Referrals. One of these eight involves the “Embarrassment Factor”. That is, that feeling of discomfort and even embarrassment when asking a client for a referral. The Embarrassment Factor was created as a result of well intended marketing gurus claiming that business owners simply needed to ask their clients, customers, or patients for referrals and the floodgates would open up.
So excited entrepreneurs and their team would immediately start asking for referrals only to often experience poor results, a feeling of putting the clients on the spot, and even a feeling of rejection. After a short period of time, many of these businesses simply stopped asking for referrals all together. And some replaced personally asking with a general referral request program, which seldom produces any tangible results.
One of things we teach our coaching clients and program members is how to get the client in a “Peak Referral State” before asking for the referral. It is highly effective.
Just the other day I was working with a client on their referral program and realized that some people still feel a bit of the “Embarrassment Factor”, even when following our renowned “Active Referral System”. The clients loved them; even were willing to provide testimonials, and yet they were still uncomfortable asking for referrals on the spot.
The solution, simply ask for the referral via email or letter immediately after the customer leaves your store or office, or hangs up the phone. Although it is not as effective, it will dramatically increase referral requests if you or your staff suffer from the Embarrassment Factor.
To your success,
Scott
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