Client Relationship Management
How to ask Clients to Refer to You
I was reading social media the other day and a post leapt out at me which said – “There is no longer such a thing as B2B (Business to Business) – there is only P2P (People to People)”. For many years now, business management literature has provided increasing evidence that success in business is underpinned by strong relationships with customers/clients. When it comes to gaining referrals, there are a number of processes. However, the success of these processes is couched in the 80/20 philosophy – 80% of effort is about relationship building (recognition of celebrations and feel good activities) and 20% is direct marketing.
We know from literature that it costs less to gain growth from an existing customer/client base than it does to gain new customers/clients. However, like cold calling, asking existing customers/clients to refer is revered by many business owners. So I asked the question of my business colleagues at the Albany Creek Business Contacts how they go about having the “referral” conversation with existing customers/clients.
In summary, it was identified there are two ways – subtly and directly. Subtle processes can include:
- message on email signatures or marketing material (like a newsletter) along the lines of – ‘Our business is primarily based on referrals. If you know anyone that we could assist please let us know.’
- when you meet a referred customer/client acknowledge the referral at the start and mention to them that you love receiving referrals from customers/clients.
- when finishing a job, leave a few business cards with a thank you note (and maybe some lollies).
A more direct process is to commence with a “Satisfaction” appointment with existing clients. Invite a client for a coffee and seek feedback from them in relation to their satisfaction with you as a provider (this is also a great quality check – but that’s a whole other blog). If existing customers/clients are not satisfied with you then they are not like to refer (in fact they are more likely to negatively refer – that is, tell prospects to stay away) – and why would they refer – if you don’t have happy satisfied customers/clients, are you really entitled to be referred?
Once you have established satisfaction with the customer/client, you can work in asking for them to refer. Keep it conversational and where appropriate, be specific. Examples to approach this could include:
- “since you are happy with how I solved that issue for you, do you know anyone else who has the same problem that you could let know about how I have solved it for you”
- “I am glad you are happy with my work – I am particularly interested in expanding into high performance car maintenance and I noticed you attend the car racing regularly – do you have any connections in the sport or is it purely pleasure?”
- “I am glad we have been able to take the pressure off you by doing your books and looking after your business’s financials so you can focus on what you do best. Are you involved in any business networking groups where members may need the same assistance?”
Once opportunity to refer has been established it is a matter of asking the question – “what would be the best way for me to meet them?” – that is, engage and involve your customer/client in the process of moving from the conversation to an actual referral.
Regardless of how you gain referrals, it is imperative that you look after and appreciate the referral with genuine interest and intent. It also doesn’t hurt to reward the person who provided the referral with a gift/acknowledgement for their generosity.
(Blog contributors – Leonard Whittaker (Action Cycle Learning) Rob Carmody (Australian Integrated Communications) Sally Balwin (Balanix Solutions) Kathy Patterson (Brendale Stationery Supplies) Matthew Fox (Brisbane hosting & Web Design) Kirsty Newbery (Caring Cottage) Brad Davies (Conquest Pest & Termite Control) Nathan Dobbins (Core Computers) Scott Deaves (David Deane Real Estate) De Wet van der Nest (Express Air Con Cleaning) Oriano Giammichele (GT Racing, Mobile Mechanic) Jason Matthey (Insurance Web) Anne-Louise Underwood (SMS Toolkits) Bruce Hall (Wombat Electrical) Tracie Palmer (Cornerstone Home Loans) Criag Chalmers (Royalty Home Services) Streten Mason Lawyers )
Albany Creek Business Contacts consists of local quality and reliable businesses who provide a wide range of services from home and residential services to B2B and commercial services. Our service areas cover primarily Albany Creek, Eatons Hill, Brendale, Aspley, Warner, Chermside, Strathpine, North Lakes. However many members will cover greater areas.
Albany Creek Business Contacts meet fortnightly on a Wednesday morning for a 7am breakfast and networking meeting.
Balanix Solutions – Taxation | Accounting | Business Advise.
Situated in Strathpine on Brisbane North, we partner with our clients to assist them in their accounting, business management and bookkeeping needs. Our clients vary in industries from professional services (such as law, vet and dentist) to the trades (mechanic, bricklaying, plasterer etc), hospitality and retail. Are clients are located in the Pine Rivers area (including Brendale, Lawnton, Albany Creek and Eatons Hill) through to Kallangur, Petrie, North Lakes and Caboolture, as well as Brisbane South, the Gold Coast and various other parts of Queensland.
Call us today … we can help (07 3264 4783)
5 Tricky Questions Potential Clients Ask
Hands up if you have been in the situation where a prospective client has asked a question you have struggled to answer?
Have you felt sometimes like you are in a job interview where you can answer their questions however, you have struggled with whether your answer was good enough or made you sound like a tosser?
Prospective clients are in many ways “interviewing” businesses to see if they are the fit for them. I asked my colleagues at the Albany Creek Business Contacts what are the trickiest questions they get asked as business owners, how they interpret the questions and how they think best to answer them. Here is the top 5.
1. As a sole trader/business owner, what happens to me if you disappear or get hit by a bus?
This is a very reasonable question if the client is relying on a sole person to deliver the service or product. It was suggested that there needs to be total transparency in relation to the service, ensuring the client has all the tools and wear-with-all they need to set up continuity. For instance if your website is managed and hosted by a sole trader then the business needs to ensure the client has all passwords, backups and information needed to seamlessly and easily transfer the work to another provider. It was also suggested that, if possible, the business could create networking partners to back them up if they are unable to provide the service or product.
2. How many staff do you have?
It was agreed that businesses can be measured by their size. However, this question can be motivated from a couple of angles. If there is one or very few people in the business, some prospective clients maybe concerned with capability to provide the service or product and back-up if required. On the other hand, in some industries, prospective clients maybe concerned that a large number of staff may equal a higher price tag and loss of personalised service. To handle this question, it was agreed that the question needs to be answered honestly, but follow up the answer with a gentle probing question to determine what the driving concern is of the prospective client that has prompted them to ask this question, then address the concern/s.
3. Why should I do this now?
More people are prioritising how they spend their money. Prospective clients are probing more in relation to whether the service or product is a “nice to have” or a “must have”. Discussion concluded that in this instance, whilst maintaining relationships, the best approach is to outline the implications if the client doesn’t act with the service or product. The example used was a fire safety business who approached one of the members and showed them a short video of a house fire where a family was trapped and injured. At the end of the video, the business owner as “would you like to buy a fire-extinguisher?” This strategy successfully showed the prospective client the reason for the “must have”.
4. How long will it take and what will it cost?
No matter what the industry, I am sure nearly every business owner has been confronted with this question. The answer is – you can’t really answer this definitely without client input. It was agreed that it is best to qualify the procedure of the service or product delivery (that is, explain what is involved in providing the service or obtaining the product). It was also suggested that the business owner try to ascertain the client’s expectations and what they consider reasonable. It’s about making the invisible visible.
5. Donation and sponsorship requests.
Many businesses have a corporate social conscience and where possible give back to the community. However, there are a large number of organisations seeking support through donations and sponsorships that there has to be limit as to what a business can do. It was agreed the best way to handle this situation is to set the businesses donation and sponsorship budget as part of the business’s overall budgeting process. This activity not only determines the dollars available but also how the dollars are going to be spent. Then when request come along, the response is that the business has allocated sponsorship and donations for the year and regrettably cannot supply more. If you then want the organisation to provide you with more information you may wish to consider them in your next year allocation.
(Blog contributors – Leonard Whittaker (Action Cycle Learning) Rob Carmody (Australian Integrated Communications) Mike McFillin (Australian Training School) Damian Jenkins (Australian Unity, North Lakes) Sally Balwin (Balanix Solutions) Kathy Patterson (Brendale Stationery Supplies) Matthew Fox (Brisbane hosting & Web Design) Kirsty Newbery (Caring Cottage) Brad Davies (Conquest Pest & Termite Control) Nathan Dobbins (Core Computers) Scott Deaves (David Deane Real Estate) De Wet van der Nest (Express Air Con Cleaning) Dan Milgate (Fit4Life Personal Training) Oriano Giammichele (GT Racing, Mobile Mechanic) Jason Matthey (Insurance Web) Andrew Gallagher (Lollyworld) Pete Paulo (Pacific Empowerment) Craig Chalmers (Royalty Home Services) Tara Forrest (Tim Forrest Plumbing) Jenni Goddard (Jenni FX) Lynne Somerville (About you Promotions) Tessa Stowe (Sendout Cards) Michael Manttan (Jims Car Cleaning Aspley)
Albany Creek Business Contacts consists of local quality and reliable businesses who provide a wide range of services from home and residential services to B2B and commercial services. Our service areas cover primarily Albany Creek, Eatons Hill, Brendale, Aspley, Warner, Chermside, Strathpine, North Lakes. However many members will cover greater areas.
Albany Creek Business Contacts meet fortnightly on a Wednesday morning for a 7am breakfast and networking meeting.
Is Big Better?
Hands up those who love dealing with customer service centers where no one is empowered to deal with your matter, no one knows who to put you through to to deal with your needs, but rather just read you the script and/or refer you to the website to work it out for yourself?
In most industries, there are the little guys and the big guys. Up here on Brisbane’s north we have had the introduction of Costco, IKEA, Bunnings, Masters etc etc. However, in the strip between Brendale and North Lakes, through to Morayfield and Caboolture there is a huge number of small to medium businesses scattered throughout communities.
Promoted by the mixed views in relation to Costco floating around conversations and social media, I posed the question, to the Albany Creek Business Contacts group – is big better?
This question was coupled with the desire to know – what are the opportunities for small business when confronted with large operators in their industries.
“Feedback from my clients tell me they prefer to do business with smaller operators because of the tailored solutions, back-up availability and superior customer service the smaller operators provide,” Nathan Dobbins, Core Computers commented.
De Wet van der Nest, Express Air Con Cleaning, shared some interesting insights from the USA which indicates consumer trends are moving away from the bigger operators towards the smaller local providers. The desire for more personal service and relationships so they know who they are talking to/dealing with underpins this growing trend.
Kathy Patterson, Brendale Stationery and Matthew Fox, Brisbane Hosting & Web Design echoed this trend adding that in their experiences, customers are looking for more personal service and genuinely wanting to support local. It was agreed, that price competitiveness still was a factor, however, lower pricing was not the sole motivator for many. Further, smaller operators could provide more flexibility to meet their customers’ needs where the larger operators tended to be more rigid in products and service delivery.
“Small business needs to stop competing with the bigger operators on their terms,” shared Leonard Whittaker, ActionCycle Learning. “People make buying decisions based on liking the person they are dealing with, believing the provider understands their needs and that the provider responds to them as a human being,” commented Leonard.
Big becomes depersonalized and consumers tend to prefer operators who are about the community in which they live. In this regard, Leonard shared six (6) principles for business to be successful in the eyes of their community:
- Keep money in the community.
- Keep money moving within the community.
- Be a contributor to the community (not just an advertiser to the community)
- Communicate with the community in a way people understand.
- Combat the point that consumers should buy on price.
- Help those who need help.
This sense of community was expanded on by the business owners in the group reinforcing that a competitive advantage to business is to be a part of their community and build relationships. All sounds good, but what can a small business do to achieve this? Suggestions provided covered:
- Give time to community activities like APEX, Rotary etc.
- Give time and/or sponsorship to community sports and children’s activities like Scouts.
- Volunteer services to community/not for profit organisations, eg, if in fitness business, offer a pre-season fitness session to players at the local footy club.
- Volunteer at the local school or your child/ren’s school.
- Sponsor local school awards.
It is very encouraging to hear small business speak so positively. Small business is the backbone of communities so get out there and build your profile both personally and for your business.
Albany Creek Business Contacts consists of local quality and reliable businesses who provide a wide range of services from home and residential services to B2B and commercial services. Our service areas cover primarily Albany Creek, Eatons Hill, Brendale, Aspley, Warner, Chermside, Strathpine, North Lakes. However many members will cover greater areas.
Albany Creek Business Contacts meet fortnightly on a Wednesday morning for a 7am breakfast and networking meeting.
Balanix Solutions – Accountant, Business Advisor, Bookkeeping.
Situated in Strathpine on Brisbane North, we partner with our clients to assist them in their accounting, business management and bookkeeping needs. Our clients vary in industries from professional services (such as law, vet and dentist) to the trades (mechanic, bricklaying, plasterer etc), hospitality and retail. Are clients are located in the Pine Rivers area (including Brendale, Lawnton, Albany Creek and Eatons Hill) through to Kallangur, Petrie, North Lakes and Caboolture, as well as Brisbane South, the Gold Coast and various other parts of Queensland.
Call us today … we can help (07 3264 4783)
Is It OK to Fire a Client/Customer?
Sally Balwin
Recruitment | HR | Business Development
Our Albany Creek Business Contacts (ACBC) member is in a pickle processing the loss of their very first client. After agonizing over what more they could have done, sharing their story raised the questions – is it OK to fire a client and, if so, how do you do it in the most positive light?
Their story goes – the nature of the business is not 9 to 5 nor is it walk-in customer service. Our member is a specialist in their industry and, although operating out of commercial premises, promotes that some of their services is by appointment only. The existing promotion has worked well to date – however, enter client who wants things done differently. This client has an expectation of service delivery when they want and, in some instances, upon very short demand. After detailed explanation that this cannot be accommodated and offered alternate solutions, the client walked with parting words of not feeling valued and not getting what they wanted. Like most business owners, the raft of guilt, emotion and questions flowed – did I not handle this correctly – should I have done what they wanted regardless – could I have done more – do I need to change the way I do things – and so it goes on.
If you are a business owner reading this, by this stage I have no doubt you are empathizing with this situation, no doubt from personal experience. Here is what the ACBC members had to share with our colleague.
Kudos goes first of all to Damian Jenkins, Australian Unity, North Lakes who gave us our first collective agreement – “The first client lost is always the hardest – so now that is behind you” he said. Damien continued to share his insight by suggesting that they ensure their business operations model is well defined and well communicated.
Small businesses tend to be more personable and relationship based but as Andrew Gallagher, Lollyworld reminded us “we don’t gel with everyone and sometimes there will be a client/customer relationship that just doesn’t work”.
The group agreed that there are common signs that a relationship maybe heading south, such as –
- clients/customers demanding over servicing – almost taking advantage,
- slow payment of bills requiring lots of chasing,
- querying and questioning everything and
- master/servant demeanor, to name a few.
It was agreed that business owners need to identify good ideal clients/customers and determine what, if anything, extra would be provided to each class of client. Nathan Dobbins, Core Computers also suggested some businesses could develop a Client/Customer Charter which sets out what the expectations and responsibilities are of both the business and the client/customer and to communicate this extensively so there are no misunderstandings or unrealistic expectations.
OK, by this stage everyone has agreed that not all clients/customers are good client/customers and that it is OK to part ways … which then raises the question, how to do it in the most positive way.
Sometimes you have to have some very difficult conversations with very nice people. You can explain that what the client/customer is after you can’t deliver but explain what you can do for them and note that you understand if this doesn’t work for them. If you can, assist or refer them to someone who could better service them which makes the client/customer feel like you are still valuing and helping them. If you decide that you will accommodate difficult clients you may need to review your pricing structure and charge a premium to them for the additional servicing.
Sandra Gilliman, Streten Masons Lawyers summed it up nicely, “If you have done, within reason, what you can, let the client/customer go and trust that your reputation will stand on its own.”
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Balanix Solutions – Accountant, Business Advisor, Bookkeeping.
Situated in Strathpine on Brisbane North, we partner with our clients to assist them in their accounting, business management and bookkeeping needs. Our clients vary in industries from professional services (such as law, vet and dentist) to the trades (mechanic, bricklaying, plasterer etc), hospitality and retail. Are clients are located in the Pine Rivers area (including Brendale, Lawnton, Albany Creek and Eatons Hill) through to Kallangur, Petrie, North Lakes and Caboolture, as well as Brisbane South, the Gold Coast and various other parts of Queensland.
Call us today … we can help (07 3264 4783)
