How to Give Good Business Referrals

By: Network Lead Exchange

Referrals are vitally important to every business, and when giving referrals, this communicates showing faith in a business’s ability to serve someone. There are plenty of people that can be referred to a business, these people include family and friends or people within your network. However, there are some things to consider when giving a referral so entrepreneurs do right by the business and the person being referred.


Refer the Right Types of Customers

Not all referrals are created equal; in fact, one of the worst types of referrals that can be made are the annoying customers. These customers are the type complaining about everything and have the most exacting standards. After a while, anyone in business would rather not get the business than deal with these types of customers. The best method is assessing the personality of the person, and if they are a current customer, then they’re known commodities. Refer people who would be pleasant customers and worth the businesses time. Don’t refer customers who are going to be a headache.


Ensure the Referral Mentions Your Business

This is possibly the most important thing with any referral. An entrepreneur doesn’t want someone in their network to think the business just happened on its own. Have the customer mention the specific business. This is something important because when a business knows where the source of their revenue comes from, they become conscientious of keeping that revenue stream going. For many businesses, that means referring customers back to the original business. This is how a mutually beneficial referral system ends up being organically built.


Provide Incentive with the Referral

A great referral isn’t just handing a business card or information to someone, it is providing value along with the referral. For example, if an entrepreneur refers a plumber, the entrepreneur should let the person know if they use the services of the plumber, the next time they are in the store, they’ll get 10% off. This accomplishes a couple different objectives: it provides a referral to someone within a network and it also provides impetus for the customer to come back to the business.


Connect the Referral to the Sale

Not all businesses are full-service businesses, and with good reason. The truth is many businesses do part of the job. For example, a paint store supplies all the tools needed to paint such as the paint, brushes, ladders, tape, etc. What they don’t provide is a contractor that actually paints the house. Many customers will head to a business and happily purchase all the items needed for a project. Then they’ll get in over their heads. This is why it’s a good idea to offer a referral to a companion business augmenting what’s done by the entrepreneur. This simple act goes a long way towards building productive relationships and creating a reciprocal approach to referrals.


Include the Competitive Advantage When Referring

The reason why everyone makes referrals is they have a positive experience with a business. For example, with movers, a reason to refer a specific company is the TLC used to move the most precious of items. Movers who arrive on time and take care to do the job right are worth their weight in gold. When referring any business, lead with why the business is being referred. Even though today’s world is appreciably modernized, old school ideas like customer service and going the extra mile are impossible to quantify, and yet the person giving the referral experienced these elements of great service. Therefore, they can best speak to a company’s ethos and that authority is why the person receiving the referral makes the call to the company being referred.


There are plenty of advantages to being a business providing referrals. In a network, these folks are some of the most sought-after members. Find people in a network who enjoy giving referrals @ NETWORKLEADEXCHANGE.COM.