Your most qualified prospects to become your customer are those that come from referral.
What are you doing to elicit referrals?
Recognise referring members?
And improving your referral process?
What percent of new customers come from referral for you?
This is not word of mouth. In other words, the new customer does not say “I heard about you” – that’s word of mouth. They say “John told me I should come down.”
We’re going to explore this topic in today’s show.
Welcome to #JTInTheRaw show 61 live from Melbourne today! I am about an hour away from delivering the keynote for the YMCA conference today … and I’m pumped up for it!
If this is your first JTInTheRaw live or on replay, I chew the thin on business every week and have been doing so for 60 shows. You can binge watch at the JTInTheRaw You Tube channel by clicking here.
I want to say a massive shout out to everyone who wished me a happy birthday. I was humbled, embarrassed and very grateful for the Facebook wishes I received. Thank you to everyone!
I want to shout out to Scott Robertson who implemented a marketing concept that we discussed at the Industry Leaders Roundtable … he has received massive views from his video and just this week his business was mentioned in the local newspaper. Amazing traction and then exposure for Scott. Congrats Scott. I love hearing about successes from people who implement ideas we talk about!
It’s been an interesting week as I prepared for my keynote. Lots of reading, researching and stumbling across stuff!
I was more aware of marketing suggestions this week.
And while the hip n groovy way to gain new customers seems to be taking advantage of the online world, I wondered how much effort are we making to gain referrals?
Traditionally, the first time we ask for referrals and for many businesses this is the only time, is at point of sale. Theory says this is when I am most excited about your product, so that’s when I want to share it with my friends. And in some markets, I would totally suggest you do this!
I would encourage you to script up and have the collateral to ask for point of sale referrals if you know your market has not been ‘burnt’ by this strategy. There are pockets in every community or city, where referrals have been harassed & now no one wants to hand over their mate’s details. If this hasn’t occurred where you are, then definitely start asking at point of sale.
If you know your competitors ask at point of sale or your market has been burnt, then turn this negative into a feature of your business.
Consider saying something like, “Now you’re a member you’ve the opportunity to invite up to 5 friends into the club for a free (whatever you’re giving away: 7 day pass, PT session, etc). Now most gyms ask you for those names now but here at Active we believe we have to prove ourselves you. So in 30 days time, when you’ve experienced the club, starting to get your results and loving us, is it OK if I ask you then for the names of people you’d like to introduce to the club?” Of course they’ll say yes and you follow up with “Great! And if you want them to come in sooner, just let me know and I’ll arrange it for you.”
To be honest, this is exactly how I’d like to be asked – once I’ve experienced you, trusted you & feel comfortable with you then I am happy to tell my friends about you.
If you only take one thing from me, the key about referrals at point of sale is you ask!!! You need a system to ensure every new member is asked – whether that is at point of sale or in 30 days.
And sales managers, once this system is implemented your job is to manage and measure the results! You have to look at the numbers, work with your team, role play and do whatever it takes to make asking an unconsciously competent skill and growing these numbers.
So when else do you ask for referrals?
I like to build into a marketing plan one or two referral campaigns. This is where we provide printed – yep old school – collateral combined with online marketing material. You may give away a prize. You may give everyone a prize. But I want to go hard in a 4 to 6-week campaign providing an incentive for referring members.
If your business is less than 3 years old, I think you can get away with 2 per year. The more mature your business, you’re probably looking at just annually.
By the way, if you’re running a competition for referring members make sure everyone has a chance of winning. If it goes to the person who refers the most people will simply give up if a member is out of the gate quickly!
I am also a fan of an ongoing referral strategy: whenever someone introduces a new member they receive a gift. Ensure the gift is personal & valuable to them! This could be a free month, free session or a discount voucher.
Interweaved in this are daily promotions like Free Friend Friday … Bestie Week … Train with a Buddy or whatever else you can come up with. These are not massive, highly expensive campaigns. They are more grass roots and quick to roll out.
I do worry that many of our customers don’t know:
A. How to introduce a new member to us? I mean literally what do they need to do.
B. What they receive if they do.
And I’m not 100% convinced that members actually introduce anyone for the incentive you provide. I think … if they are using your product they get results. When they get results they tell people because they’re proud … oh people notice so they ask.
So what the hell does this all mean?
If you want referrals from your customers in the first 30 to 3000 days – deliver what you promise in your sales pitch; on board them so they feel part of the community; and ensure they are using your product.
If you want referrals from customers ensure they are using your product and getting results.
If you tick these boxes, I guarantee referrals and there will be no need for campaigns or incentives!
It all comes back to your members using you!!
Change your focus . . .
If you found today’s show useful, give me the heart now … if you know someone who could benefit from this info for their referral program tag them in the comments below and if you want help integrating referrals into your marketing plan, send me a PM or pop help in the comments and I’ll reach out.
OK I better head off and get ready to rock the YMCA!
Thanks for tuning in today and I’ll be back next Friday, same time and same place!
Quote of the Week
If you want referrals deliver what you promise; on board new customers to feel part of your community; and ensure they are using you.
Do you want to work one on one with JT?
Check out all previous shows here: https://www.activemgmt.com.au/category/jt-in-the-raw/
Justin is the Managing Director of Active Management, which he began January 2004. He offers coaching to businesses worldwide in everything from start up and design to marketing and sales systems. Justin also facilitates four Australian and New Zealand ‘fitness industry roundtables’ events, which allows him to see a huge cross section of business models.