Business Referrals and the Importance of Networking
Starting a business is a tough row to hoe; sustaining it can be more difficult.
In a sluggish economy where you are apt to find a similar business to yours, the competition can be fierce.
Your business, no matter what size and what services it offers, has to be visible and relevant.
One of the best ways to ensure that it is both is by mastering the art of business referrals.
Sure, the option of cold calling or hitting the pavement are viable sources of drumming up new clients; but this is time consuming and a daunting task, particularly if you don't have an entire staff dedicated to sales.
A more efficient and effective route to growing your business is through business referrals.
By making business referrals a priority, you are accomplishing many things at once.
First, you are lessening the time spent and often wasted by assigning current employees sales tasks which then frees them up to complete the current tasks for your already existing customers.
Keeping current clients is just as important as accessing new ones.
And happy clients are a great word of mouth source of advertising as well.
Business referrals will also increase your clientele at a much higher rate than just advertising alone.
Those who need services rendered are more likely to hire your business if your name is mentioned by referral, by customers who have already experienced your work quality, style and ethics.
Whereas through cold calling or traditional advertising potential customers have to base their decision solely on your sales tactics and somewhat empty promises, the nod of approval from a good referral affords potential customers comfort than no amount of cold calling or advertising can.
As you meander through the process of business referrals keep a few things in mind both before and during this venture.
One of the primary considerations is to have a concise objective that is concrete.
This is a goal that is put into writing such as 'increase client business 20 percent within the next three months' or something similar.
Be sure to make your goal realistic so that it is actually attainable.
Then, hone in on your targeted market.
Since you will likely come across customers and potential customers of all sorts, a key to mastering referrals is to really understand your targeted audience.
Keep in mind that not every current customer is appropriate for referrals.
Keeping an open mind about possible referrals will serve you well, but focus your time and energy on your top customers who are most likely to drive new business your way.
This will take some effort, as you need to get to know your existing customers on a one to one basis so that you can better ascertain who else is within their social circles and networks which will ultimately help you decide if they are appropriate referrals.
There are several referral platforms that allows you to organize your business network and track referrals in one centralized location.
You can use these platforms to determine which business contacts yield the most referrals that will convert to a sale.
The amount of information a business owner can obtain with keen listening and observation is amass and invaluable.
Many successful businesses also offer some type of reward program for referrals.
People love to get free or discounted services whenever they can.
Adding a little incentive such as a percentage off an existing client's services or a small cash bonus for specific referrals is an optimal way to say thank you and give something back to them in return for their getting you new clientele.
With an online referral platform, you can determine how much you are willing to pay for a referral beforehand and get straight down to business; you can also refer clients to other businesses outside your service area or outside your specialty.
Business referrals are not however limited to existing clients.
Maintaining and forging relationships with other businesses in the area is also helpful when getting referrals.
Exchanging business cards and offering to place them in a visible area of your business is a mutually respectful way to help grow your business and those of others at one time.
In a sluggish economy where you are apt to find a similar business to yours, the competition can be fierce.
Your business, no matter what size and what services it offers, has to be visible and relevant.
One of the best ways to ensure that it is both is by mastering the art of business referrals.
Sure, the option of cold calling or hitting the pavement are viable sources of drumming up new clients; but this is time consuming and a daunting task, particularly if you don't have an entire staff dedicated to sales.
A more efficient and effective route to growing your business is through business referrals.
By making business referrals a priority, you are accomplishing many things at once.
First, you are lessening the time spent and often wasted by assigning current employees sales tasks which then frees them up to complete the current tasks for your already existing customers.
Keeping current clients is just as important as accessing new ones.
And happy clients are a great word of mouth source of advertising as well.
Business referrals will also increase your clientele at a much higher rate than just advertising alone.
Those who need services rendered are more likely to hire your business if your name is mentioned by referral, by customers who have already experienced your work quality, style and ethics.
Whereas through cold calling or traditional advertising potential customers have to base their decision solely on your sales tactics and somewhat empty promises, the nod of approval from a good referral affords potential customers comfort than no amount of cold calling or advertising can.
As you meander through the process of business referrals keep a few things in mind both before and during this venture.
One of the primary considerations is to have a concise objective that is concrete.
This is a goal that is put into writing such as 'increase client business 20 percent within the next three months' or something similar.
Be sure to make your goal realistic so that it is actually attainable.
Then, hone in on your targeted market.
Since you will likely come across customers and potential customers of all sorts, a key to mastering referrals is to really understand your targeted audience.
Keep in mind that not every current customer is appropriate for referrals.
Keeping an open mind about possible referrals will serve you well, but focus your time and energy on your top customers who are most likely to drive new business your way.
This will take some effort, as you need to get to know your existing customers on a one to one basis so that you can better ascertain who else is within their social circles and networks which will ultimately help you decide if they are appropriate referrals.
There are several referral platforms that allows you to organize your business network and track referrals in one centralized location.
You can use these platforms to determine which business contacts yield the most referrals that will convert to a sale.
The amount of information a business owner can obtain with keen listening and observation is amass and invaluable.
Many successful businesses also offer some type of reward program for referrals.
People love to get free or discounted services whenever they can.
Adding a little incentive such as a percentage off an existing client's services or a small cash bonus for specific referrals is an optimal way to say thank you and give something back to them in return for their getting you new clientele.
With an online referral platform, you can determine how much you are willing to pay for a referral beforehand and get straight down to business; you can also refer clients to other businesses outside your service area or outside your specialty.
Business referrals are not however limited to existing clients.
Maintaining and forging relationships with other businesses in the area is also helpful when getting referrals.
Exchanging business cards and offering to place them in a visible area of your business is a mutually respectful way to help grow your business and those of others at one time.
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