Recently I was interviewed for some ideas on how to generate referrals for an article in an ANZ Banking Group client magazine "InPerspective" and a nice story was the result.
Here's the story and some great "how to do it" tips.
Winston Marsh was walking along Collins Street, Melbourne, when he stopped to look in the window of a Montblanc pen store. As Marsh watched, a shop assistant donned a pair of white gloves before walking to a cabinet and selecting a pen, which he then carefully laid on a square of velvet in front of a customer.
Marsh, a marketing consultant, conference speaker and expert on generating business-to-business referrals, realised he was witnessing a skilful exercise in selling. “A $2,000 Montblanc pen fulfils the same function as a 20-cent biro,” he says. “The real difference is perception.”
All organisations have the opportunity to look at how they serve existing clients and add what Marsh calls “white gloves moments” to that service. “The white gloves tell a customer the company’s offerings are special, and later the customer will tell others about the experience.”
“Wowing” a client with a metaphorical white glove can produce a glut of referrals. Yet many organisations fail to try. Even fewer implement a referral system, which represents by far the easiest and most productive way to generate business, says Marsh. (A recent British survey showed that 80% of companies found word-of-mouth referrals to be the most effective form of gaining new customers.)
It’s extraordinary, Marsh believes, that many CEOs will readily assign a million dollars to an advertising campaign but won’t consider a strategy to generate referrals. “If you went out and bought a thousand of your clients a thousand-dollar gift and said ‘please introduce me to someone who might give me more business,’ your success would be huge.”
There are three failsafe ways to generate referrals, says Marsh:
Ask:
One survey has shown that on average only one in 100 businesses, large and small, actually ask clients for referrals. This can be as simple as saying: “Incidentally, is there someone else you know who’d appreciate what we’ve done for you?”
Creating a culture that encourages such requests must start at the top. “If staff are never encouraged or have no way of reporting the referrals they’ve got, they’ll know management doesn’t consider it important,” Marsh says.
Delight customers:
Deliver first-rate service and support always. And company people involved in new transactions should contact their clients afterwards, every time. “Whether you’re selling a power station or photograph, a two-minute call after the deal can deliver a customer for life,” Marsh says.
In addition, Marsh suggests ringing those who’ve sought a quote but haven’t bought from you to say, “We appreciate you have found someone else. If we can help with anything in the future, please contact us.”
“The reaction of the potential client? Wow!”
Have a system:
Systemise the process of regularly letting staff and clients know you need referrals and that there’ll be a reward when they introduce someone to you.
Recognition is just as effective. “As Napoleon said, men will die for a medal,” says Marsh. “Management should also make it clear to staff what kind of referrals they’re after, as a recommendation to a non-ideal client is unlikely to create business value.”
Rewards can depend on the amount of business involved and can range from vouchers and movie tickets to weekends in a five-star hotel. Occasionally clients may feel uncomfortable about receiving such largesse. Marsh suggests a response like “Anytime you refer business to us you’re saving us on our marketing expenses. We’d like to share some of that with you.”
All of this may seem common sense, Marsh concludes, and that’s precisely what good marketing is. “But don’t tell too many people or it will do me out of a job.”
Here are the troops receiving instructions prior to leaving for a potentially dangerous and ultimately successful mission. I couldn’t resist this. Actually it’s me with a couple of my dogs and some of their friends demonstrating a key team motivation concept that “what gets rewarded gets done.” The reward was, of course, a dog biscuit… team members require something more! 
All of us need a hero… someone we admire and respect, somebody who inspires us. Maybe it’s someone who is a role model for us or silently coaches us through their thoughts, words or deeds. Somebody from whom we can learn.
So here’s a question for you… who is your hero? Who is that silent sentinel upon whose feats and attitude you can reflect when you're looking for encouragement, guidance or support?
I’ve always had a hero… right back as far as I can remember. He’s a man I never met or known personally and perhaps he has played such a large part in my life because I was born on his birthday.
His name? Winston Churchill (1874 - 1965). And if you’re not familiar with his achievements, he was a British politician, the Prime Minister who led Great Britain during the worst times of the Second World War… the bulldog who stood up to Hitler, buoyed the hopes of the British during the darkest hours of the war and promised them the sunshine on the other side.
I’ve always loved reading and listening to his speeches and on the eve of his birthday this week I’m taking the liberty of sharing some of his inspirational words and his wicked wit. Oh, if only we could say it like he did.
Never give in--never, never, never, never, in nothing great or small, large or petty, never give in except to convictions of honour and good sense. Never yield to force; never yield to the apparently overwhelming might of the enemy…Speech, 1941, Harrow School.
We shall not fail or falter; we shall not weaken or tire. Neither the sudden shock of battle nor the long-drawn trials of vigilance and exertion will wear us down. Give us the tools and we will finish the job…Radio speech, 1941
I am prepared to meet my Maker. Whether my Maker is prepared for the great ordeal of meeting me is another matter… on the eve of his 75th birthday
I like pigs. Dogs look up to us. Cats look down on us. Pigs treat us as equals.
I am enclosing two tickets to the first night of my new play; bring a friend… if you have one…George Bernard Shaw to Churchill.
Cannot possibly attend first night, will attend second… if there is one…Winston Churchill, in response
He has all the virtues I dislike and none of the vices I admire…About a politician.
A modest little person, with much to be modest about… About the opposition’s leader.
The other day I was out for my customary early-morning run with my dogs and I was on the homeward leg. The sun was just coming up into a beautiful clear blue sky and that early-morning crisp briskness heralded the start of what was going to be a beautiful day.
Absorbed in my thoughts I came out of my reverie as I met a woman walking in the other direction. As is my habit I smiled, said hello and inquired "how are you?"
Without looking at me and with no expression on her face she responded with "not bad!"
As I ran the final half kilometre I'd ruminated on her response.
Here it was... an absolutely perfect day and she was alive and well yet all she could say was "not bad!"
I wondered then whether, when she was wishing friends and family the compliments of the season, she would say "have an all right Christmas and all right New Year"?
And the answer was of course she wouldn't... she would wish people all the very best with enthusiasm and fervour.
So was being enthusiastic and positive just a thing she kept for Christmas? Surely she wouldn't just want to be "all right" the rest of the year so why wouldn't she say, in response to my question enquiring of her health, "fantastic", "sensational ", "terrific" or just a plain old "great".
Learn a lesson from this and make a commitment to yourself.
Keep up the Christmas spirit. Remember that when you wish people a great Christmas and a fantastic New Year you can guarantee the same for yourself all year round by always responding positively whenever somebody enquires about your state of health.
Remember, your brain doesn't know the difference between real and imagined situations. So, when you tell you brain that you're fantastic it will work hard to make sure what that's exactly what you become.
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