A referral system will draw customers to your business like a magnet

Depending on what type of business you are in anything between 60% and 90% of new business comes from referrals by existing or past customers or clients.  That is why it is so important to have a system in place which will generate new referrals and show some kind of acknowledgement for it.  So I have listed below some examples of referral systems which I have come across
• A hair dressing salon which gives a perforated card to each of its customers offering them a free hair cut if a new client brings in the other half of the card.
• A restaurant which gives out cards saying ‘bring a friend with you next time and you will receive a free glass of wine’.
• Another restaurant which says in its mail out to preferred customers ‘dine with a table of four and one of your meals will be free’.
• An electrical appliance shop which offers a free gift if their preferred customer brings along a friend to a special viewing of new seasons stock.

And then there is the follow up thanking your client for the referral
• The accountant who sends a box of chocolates or a bottle of wine to any of his clients who refer a new client to him
• The simple thank you note which doesn’t really need a gift.  Just the time taken to thank somebody for a referral makes the client feel appreciated.

It is so easy to set up a system and it costs very little to generate oodles more business than what it costs you to set it up.
One of the biggest mistakes that people make in business is that they assume that their customer knows that they want more business.  Sure, some people will refer you when they are absolutely rapt with your service or your product but others do need reminding. 

That is why it is essential that you have some thought provoking ideas to help them remember not only that you value their business, but would appreciate you passing some more business on to you through their friends. And if you have never done it before why not have a concentrated effort (say, for the month of September, which simply offers something to your client for every new customer they introduce during that month.

Oh and by the way, if you do it, and it doesn’t generate you any new business I will give you a free in house presentation seminar on the subject of your choice.