But what if you could show offline clients how to get all their business from referrals, thereby saving the money they spend on advertising? What would that be worth to them? Frankly, it should be worth about 2-3 months of their current advertising budget, paid directly to you.
This won’t work for all businesses, so use your best judgment on which companies to work with using this strategy. While every business will be different, you can quickly learn how to set up a referral system that brings in as much, if not more, business than their current advertising.
Let’s use an automotive repair shop as our example. First, what do most people think of when considering auto repair places? The shops are dirty; the mechanics try to take advantage of customers by doing work that doesn’t need to be done; they take too long to make repairs; you have to arrange for transportation while you don’t have your car; their waiting room is depressing, etc.
We want to change all of those things. Cleaning the shop up won’t cost much beyond labor, and it can make a tremendous difference in how people perceive the shop when they arrive. If the outside of the shop needs a new coat of paint, some flowers planted in the bed out front or a new sign, it should be seen too. This alone can bring more business off the street.
Next, unless the mechanics are good at explaining what needs to be done to the mechanically illiterate, there should be a liaison between the mechanics and customers. This liaison will show the customer the problem, what might have caused it, why it needs to be fixed, and what it will cost. A clear, thorough explanation without technical mumbo-jumbo can put the customer at ease and make them feel they’re not being taken advantage of.
If the work will take longer than 90 minutes, the auto shop either provides a loaner car or offers to drive the customer to their home or place of work, picking them up when the vehicle is ready. How many auto places do this? Almost none. Imagine the word of mouth this alone can create.
If the customer opts to wait for the car, they’re shown into a waiting room that looks more like a living room than a nasty waiting room. The chairs are plush and comfortable; there are flat surfaces if they want to work on a laptop or do anything at a desk. Instead of the usual daytime television, there’s a DVD playing of a hilarious and non-offensive comedian. Who doesn’t feel better after laughing? There are beverages – not just coffee – and maybe some bagels, fruit, or danish.
After the repair is done, the car is washed and cleaned. The bigger the repair, the better the washing and cleaning. This could range from a quick exterior wash to a complete wash and wax outside, vacuuming, and wiping down inside. An alternative would be to set up an affiliation with a nearby car wash, getting car wash tokens in bulk at a discount. Then for every $x amount of money spent, the customer receives a pass. If the amount is $50, then on a $300 repair job, the customer would get six tickets which could be used for six car washes. This is hugely unexpected by the customer and something they’re likely to brag about to others for weeks.
If the customer doesn’t receive car wash tokens, she should be given something. It could be as simple as homemade-looking cookies for the road or a cup of good coffee. As the customer pays her bill and receives her tokens, she gets a very brief questionnaire about her experience. The final question is, “Can we use your comments for marketing?” Thanks to the law of reciprocity and the small gift she received, she will almost certainly say ‘yes.’ These comments can be put on the business’s website and should number in the hundreds after several months. If they ever do more advertising, they’ll need a list of these comments, their hours, and their location to create a very effective ad.
The customer gets an actual thank you card in the mail within two days of her experience at the shop. On the card is a photo of the shop with all the employees out front, holding a giant blank sign. Only the character isn’t empty; it only appears that way when the photo is taken. Before sending it out, “THANK YOU customer name!” is handwritten onto that blank sign. If they have the technology, they can do this in Photoshop, but handwriting it in is fine. In the card is a warm thank you, 2-3 magnets containing the business’ details, and the suggestion she gives one or two to friends.
Finally, 3 to 6 days later, the customer gets a follow-up phone call, inquiring if the car is still running fine and ensuring everything is alright. If there should be any problem, being this proactive will keep the business in good favor with the customer. And if everything is fine, it leaves the customer with a hot, cared-about feeling that they don’t get with the typical auto mechanic.
This has been just one example – how you set up a referral program will vary according to the type of business you’re working with. You probably noticed that we did not ask the customer for referrals in this sequence. Typically the best way to get excellent word-of-mouth advertising isn’t to ask for it – it’s to give the customer such a fantastic experience; they have to brag to others about it.
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