How to get more referrals
This is a very simple and exciting strategy - which very few small business owners take
advantage of - despite the fact that most agree that "word-of-mouth" is the best form of
business. So I'm thrilled to be able to share it with you.
You probably know that one of the most valuable assets you have in your business is your
existing client base. The quality of your relationship with them will determine the long-term
profitability and viability of your business. However what are you doing to nurture the
relationship you have with them?
Do you write to them regularly with information that will benefit them? Do you ever call them
to see how things are going? Do you send thank you letters and gifts after they have purchased something from you? Do you appreciate them?
One way of incorporating many of the above is through a VIP Programme or Preferred Customer Club - or whatever title will work best for your business.
Here are some very useful observations about human beings that are powerful facts for any
business owner:
1) Human beings love to get things for free.
2) Human beings are generally connected to other human beings. We all have networks
of friends, family and business contacts.
3) Human beings love to feel important and significant.
4) Human beings have a giving streak. We love to think we are helping out or contributing
in some way.
These four facts, exploited with integrity, are a potent mix for massive business growth.
By implementing an effective "Client Referral Program", you will be giving your clients the opportunity to fulfill the above four desires.
Here's how it works...
1. Make your customer feel important - do all the things I mentioned earlier - write to them,
send thank you letters, give them information which will benefit them.
2. Create a special level of importance for those clients who want to take the next step and become an advocate for your business. These are your clients who love you and regularly refer business to you. However instead of just taking this business for granted you reward your customers with special privileges and free gifts.
For example when somebody refers two new customers to you, you could reward them with a bottle of champagne. Or if they refer four - you could hire them a sports car for the day.
Now before you shout - oh yeah and who's going to pay for all of that? Let's just take an example:
Let's say your average profit on an order is £50 and once a customer comes to you they keep coming back. If you have 4 new customers - the total profit is £200. At the time of writing it cost about £175 to hire a Porsche Boxter for the day which means that in the above example you not only have 4 new customers which cost you nothing to acquire - but you have £25 profit as a result. Compare that with advertising. You could spend £200 on an advert - and get no new customers whatsoever.
And what do you think will happen when your customer gets his Porsche Boxter? Do you think they’re going to leave it in the garage? Of course not - they’re going
to drive it around and show off. How quickly do you think they’ll refer more business to you?
I do appreciate that a sports car may not be appropriate for your customers - and it's certainly not the most environmentally friendly but it's an example of what's possible. Tailor your programme to suit your customers. Your average order value may be small in which case the rewards will be lower.
Whatever you do make it exciting - you want everyone to talk about it. And the beauty of this
form of promotion is that you can use your products and services - so the actual cost is much lower.
Quite simply, you are enrolling your customers as walking advertisements for you. In return, you reward them with FREE gifts or services.
A couple of important issues of integrity here before you do this.
1. The person referring new business to you, your VIP, must say that they are being rewarded by you. This is absolutely necessary and it protects the consumer from being mislead or manipulated. In all cases, this will be seen as a plus because the new customer will see you as a generous and innovative business.
They will probably also see a way for them to experience the same "special
recognition" their friend is receiving.
2. You should insist that only clients who are delighted with your services refer new business. You only want people referring you who are truly passionate about what you are doing. They must really believe that their network of contacts will benefit by them recommending your services. You want people who would tell their friends even if you weren't compensating them.
You are basically just thanking them for referring business to you.
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Created With Love by Melina Abbott © 2026