Take advantage of customer references during recessionary times.
A satisfied customer is your best advertising agent. How many times, have we read this statement? A happy and contented customer brings at least two more new to your door steps through word of mouth publicity. Potential of customer referrals have never been fully explored. This probably is the most underutilized promotion tool. Presently whatever information we try to track is predominantly unstructured. When a customer leaves business premises, the owner ask just in a matter of fact way about his or her knowledge of any acquaintances that would be requiring the services. The moment customer leaves, the information is lost as the same has not been captured.
The emphasis of a successful customer referral program is to collect the data from all the customers during the sales process in a structured format in the database. Once the data is received it is mined, warehoused and leads are obtained. Then customer referral sales teams on the basis of these leads through a scientifically devised software program try to zero in on to the potential customers. For growing your business, getting new customers is of utmost importance.
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Presently there are many software applications like SAP and other customized CRM which have inbuilt modules on getting referrals. But not all organizations will be implementing CRMs. A small organization, with low turnover will find it difficult to deploy a CRM at its work place. The beauty of this promotion tool is not the technology or the computerization rather it is the reading of your customers’ mind and pulse. Even a car washer man offering quality services will win customers through word of mouth publicity. Small businesses which are operating in our nearby areas employ the referral program quite effectively. The quality of their service and products speaks for themselves.
But as the organization grows, it becomes imperative for these organizations to have a structured customer referral program in place. The three most important factors deciding success of a customer referral program are:
- Database for capturing data in structured format.
- Tracking leads and follow-ups with effective sales team for growing your business
- Acknowledgement and rewards
Follow-ups are as important fro a successful customer referral program as sales leads. It is quite possible that customer may not respond positively with first sales lead. However if contacted against after a period of time, customer may respond positively and may give business.
There are three important steps in a referral program. They are:-
- Taking consent of customer for referral program. Politely explain the program to the customer and further explain how he or she can help his or her friends and relatives.
- Handover a structured form to fill out. Form can be deposited the and there or can posted back based on self addressed envelopes and stamps.
- It may so happen that customer may like to fill the form, even then explain the importance of customer referral program and the rewards it can bring.
May also like to read:
[...] Recessionary times test the inherent strength of an organization. Any organization which continues to grow, albeit, even moderately during recession, is the winner. The times that we are witnessing right now are the worst of our times. Most of us might not have been even alive when the great depression of circa 1930 hit our forefathers. This depression is believed to be almost of the same level which hit the economy in circa 1930. The DOTCOM bust was comparatively milder. It has been almost one year when all this began unfolding. And still there is no indication suggesting even a mild recovery. [...]