Customer Referrals: New Customers From Old Customers

Every small business owner wants their customers to love them. Well, we at least want them to be extremely satisfied with the products or services we provided for them. In these situations, everybody is happy. All small businesses also want new customers. More customers equal more sales. More sales add to growth and success. Each new customer also provides increased opportunities for more word of mouth customer referrals that can lead to even more new customers.

Referrals are nice to get, but don’t leave giving referrals entirely in the hands of the referrers. If you do, they will be in complete control over what information gets passed on about you, your firm and whatever products or services you provide.

It is great when a customer is impressed by you, your products or services. But, you don’t really want your very first customer from five years ago to tell people you are the best priced option. Ideally, as your skills and experience have improved, allowing you to raise your prices once or twice since you dealt with them. A previous customers also may not be aware of new services you offer, or how your firm has added new skills and technology to make your firm even better and worth a much higher cost.

Set up a schedule of when you need to ‘reach out and touch’ your previous clients. You should be staying in touch with them regardless of how long ago you worked together. Develop a plan to keep you in their minds for the next time they need the services or products you provide. Send a newsletter, write a blog, to keep them current on changes at your firm. Update them as you add new staff, new products and services. If new technology is added to make your operation more efficient and productive, share that news as well.

Referrals customers provide need to be as accurate as possible. It is important for you to retain control over what customers tell someone new about you. That way, expectations will be met for any referrals that come your way. Stay in touch with customers over time. Don’t just disappear when the sale or project is completed. Satisfied customers can be a major source of ongoing and new business. By staying in touch with previous customers, you can keep them abreast of changes within your firm. Passing your name on to someone is just the beginning of what satisfied clients can do for your business.

Under30CEO offered a nice list of how to use existing customers to capture new ones. Here are five things customer referrals can do to help you add more customers and sales:

1. Provide a brief testimonial for your website.

Nothing builds credibility like positive words from satisfied customers. These don’t need to just be written testimonials. Consider a short video testimonial that lets new customers get a feel for what your other customers are like – add some personality to the mix. If videos are beyond your reach, ask if you can post a picture of each customer to their written testimonial.

2. Help you create a case study.

Case studies provide more information than a brief testimonial letter that says something along the lines of: “I loved working with XYZ. They finished my project quickly and on budget.” In a case study, information on the client’s situation, problems or challenges can be shared. Then, expand with what it was about your product or your services that worked for them and why. Then, summarize with how your firm solved their woes.

3. Share networking events they attend.

Attorneys, CPAs, medical professionals and other professionals often attend the same events. So do other professions and people with shared interests. You should be there too. If you specialize in selling to or working with a certain type of business or profession, find ways to put yourself where there are.

4. Share trade shows they attend.

If yours is a B2B company, focus your efforts on trade shows that your target market attends. As an attendee, you can sit in on educational programs and keynotes to meet people. Attend social events for networking. Sign up for a booth space to show off your products, skills and services. Create and present an appropriate seminar to reach your desired customer base. Look into sponsorship opportunities. There are a lot of ways to participate at a trade show.

5. Share websites they visit or forums they participate in.

You can do research into these platforms yourself, but asking a satisfied customer directly will get the answer faster. Be sure to ask why they like those particular sites. Satisfied customers is what any good company strives for. With all of the time and effort that goes into building that satisfaction, it would be a shame to let it go to waste. Make ‘Referrals’ a part of your marketing and sales strategies.