Get The Referral Habit For Your Small Business

78% of people trust referrals about products or services from people they know more than from any other source. And it's no wonder; when you dig deep to think about what a recommendation says about a supplier or provider it's pretty powerful stuff.

When someone recommends your small business to their friends, family, and colleagues they are communicating 6 of the most powerful and persuasive sales messages on your behalf.

1. You have a great product or service.

2. Your product or service is better than those offered by your competition.

3. You're reliable and can be counted on to deliver and not let them down.

4. You're respected and trusted.

5. You offer value for money.

6. They believe so strongly in what you do that they are prepared to stake their own reputation by recommending your small business.

Many business coaches are constantly surprised that so many small business owners, who provide outstanding products and services, don't use referrals as their first line marketing tool. Every time you receive a referral it's one of the easiest and quickest ways to talk or link directly with a new prospect and, what's more it's free.

The key to making the most of your referral opportunities is to ask for them. It's not enough to rely on your existing happy customers to spread the word. They are busy people with busy lives and, with the best will in the world, referring your business isn't likely to be at the top of their priority list. That's why a little push from you at the right time will get you what you want. And that's where many small business owners get a roadblock. They think it's pushy; that customers will be put off and won't come back; and they are embarrassed to do it.

A proven tip that will help you see the situation from another angle is to put yourself in the customer's position. Think about a personal situation when you have given a referral or told a supplier that you appreciated the service or product. Did you or have you ever given a referral and, if so, how did it make you feel? The truth is that when customers give referrals they do it because they believe in what you do and want to help you and their friends and family. They don't do it for money or personal gain. It makes them feel good to spread the word.

Make it part of your business philosophy to think of referrals as one of the biggest compliments a customer can give you. Keep that thought in your mind and post it where you can see it. As business coaches we challenge you to develop the habit in your small business to ask every satisfied customer for a referral.


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Mike Newman is a noted business turnaround expert, entrepreneur and business coach. His wife, Trish is an award winning, international business leader. Together they offer no nonsense, practical advice to small business owners. Their website offers business coaching services, marketing tips, resources and success strategies for small business.