Friday, July 30, 2010The Ripple Effect
Small business and nonprofits tend to rely on word of mouth for a large percentage of their new clients or supporters. Below are five tried-and-true strategies for increasing the number of referrals you receive.
Make it easy for your current clients/supporters to share info about you
Printed pieces like brochures, postcards, fact sheets, annual reports, and newsletters create credibility and facilitate word of mouth endorsement. Your existing client or supporter can hand a printed piece to a friend and say, “Check out this fantastic nonprofit I support/Realtor who found me the perfect home/accountant whose advice saved me thousands on last year’s tax bill.”
Ask and you shall receive
Tell each of your clients/supporters that you would greatly appreciate it if they would tell others about you. If you’ve done an excellent job, most people are happy to recommend you whenever they have the opportunity. Create a system for asking for referrals regularly via e-mail, direct mail, or phone. Be sure to thank those who refer others to you. An e-mail may suffice; a hand-written thank-you note is even better.
Reward them for their efforts
Depending on the amount of time and energy someone put into referring you—and/or the value of the referral—you may want to offer a thank-you gift. This could be a gift certificate to a restaurant or a discount on your products or services. Of course you can also offer an incentive to help increase your rate of referrals. Be sure that your incentives and thank-you gifts are appropriate to your brand. For example, if you’re a builder and a past client refers a $100,000 remodeling job to you that you obtain, mailing your past client a $20 Starbucks card may do more harm than good. A referral this significant requires a larger gift.
Back to basics
Don’t disregard the power of the simple, old-fashioned business card. They are one of the least expensive marketing tools to produce (assuming that you already have a logo). Try putting several cards in every piece of mail you send out. Always carry cards with you, even to the grocery, to the playground with your kids, and when on vacation. You never know when you may have the opportunity to share what you do with someone you meet.
Over deliver
Perhaps the single most powerful way to increase your word of mouth referrals is to do an outstanding job. Our long-time mechanic once took the extra time to remove some paint from the side of one of our cars (we had grazed one of the concrete barriers at a gas station—oops!). He did this without our requesting it and at no additional charge. Small gestures like this demonstrate a commitment to your work and your customers that may be remembered for years.
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New Program For Nonprofit Professionals
Wake Tech is now offering a Nonprofit Management Certificate Program. Class topics include managing your brand, online technology, grassroots fundraising, developing grant proposals, managing grant-funded programs, public speaking, and public relations. The cost for each class is $65, and you can earn your certificate by completing 48 hours (6 classes). For more information, visit waketech.edu.
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