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Referrals

Have you ever thought about getting customers to give you referrals??

Think about this >

If you have ten customers and they each referred  just one new customer a year, at the end of the year you would have 20 customers.

How many customers would you have after eight years?

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Replies

  • Unless your wanting to expand and take on employees, after 8 years you would have too many customers.
    • PRO
      With a large business like that, I’d imagine they would need constant referrals to grow?
      • Sounds like a headache to me if I’m honest, taking on that amount of new clients year on year.
  • nearly 1300 but you would lose some due to natural wastage 

  • Surely that's what satisfied customers do anyway, don't they?

    Recommendations have kept us going for 40 years. No advertising, no sign written vehicles, no leaflet drops, no website. A name board on each current job was needed and was very fruitful in the early years, but once contacts have been made and standards are maintained, a small business can become sustainable. 

    Although luck will play a big part, sometimes us 'gardeners' underestimate the business skills we have or those needed survive and thrive.

  • I don't really need any new customers . But they come and go . Economics , death , moving house etc . So I do get new jobs in , which are always through referral . I've erm in business 26 years and not advertised for 25 years
    • PRO

      I think it's encouraging and great when referrals work out as above but i have felt obligated with some referrals having being put on the spot by satisfied customers and it's not always worked out , i prefer to choose my customers , preferably meet them first . 

  • PRO

    I'm currently reading 'The Referral Engine'. I feel my company does a great job, but it's now a case of making us as easy to refer as possible. 

    Referrals are cheap leads, and they're good leads. The friend of a good customer tends to be a good customer. If they're not quite as good then they might just need a little education of how you do business. Given you've been referred to them, they'll likely listen and be less price sensitive.

    I've a bit at the back of my letters offering £20 credit or a £20 garden centre voucher for successful referrals. I made sure by best customers who referred / reviewed the business last year got a bottle at Christmas. 

    Another option is to print vouchers for the business, or staple to a flyer maybe (£20 off first service?). Leave each customer with 3-4 when we see them in March? £20 traveling in either direction, £40 for a good'en?

    • PRO

      How does it work though if your customers or potential customers are not motivated by cash incentives or vouchers , How will those people perceive your offer compared to a flyer from a company which just offers their professional services as their unique selling point . ? 

      Vouchers and cash incentives may be seen as a gimmick and a compromise on the quality of the work , Not saying this is the case by any means but not all people see things in the same way . 

    • To be honest I think most customers would think I've gone mad if I started offering vouchers etc. If they want to recommend you, they will do it with or without a financial incentive.  

      Isn't it the customer that usually gives US the bottle of wine or a few quid at Christmas?

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