You have good products or successful projects that have impressed your existing customers? Then they will surely recommend you to others, won't they? But believe me: It is rare and not particularly advantageous that a customer of yours promotes you to someone else with arguments and justifications that you are not aware of, to someone whose fit into your "target customer profile" you are unsure of. Don't think that others will do your job, and engage in active referral marketing yourself!
Referral Marketing: Active Instead of Passive
You have ZERO influence on the "passive" recommendation, as described above, leaving it to the whims of fate, destiny, and strangers. Without any influence from your side. The customer recommends you - or not.
Perhaps you will be lucky once, and a potential business partner is explicitly looking for someone with a portfolio of services that matches yours and coincidentally asks someone who has known and appreciated your work in the exact discipline being sought. At some point in the last 10, 15 years. And fortunately, at that moment of inquiry, your outstanding performance in "what was that topic again?" from 12 years ago is so vivid, special, and worth recommending in the memory of the person asked - among thousands of other topics and providers. And of course, they also have your current contact information at hand.
Well, if the foundation of your sales success is based on this more than unlikely sequence of coincidences, then you should choose "playing the lottery" as a more secure income alternative in comparison.
The text continues with a rhetorical question, whose answer everyone KNOWS - but feels like no one USES. So, if PASSIVE referral management is on par with gambling in strategic evaluation, what sensible alternatives can we come up with? Of course! Actively ask.
An Effective Strategy: Combining Customer Satisfaction Surveys and Acquiring New Customers!
When I became aware of this 20 years ago, I broke out in a sweat and my heart raced: Isn't that like falling to your knees, tugging at the hem of a skirt, and begging for a referral?
No. At least if done correctly, it is neither begging nor embarrassing. It is part of every project completion and brings you (along with new customers) valuable insights!
Many entrepreneurs know: Often, the really good suppliers, service providers, and consultants are not easily found at the top of search engines. That's where those who deal with SEA and SEO (search engine advertising and optimization) are found, not those who really know their field and put all their energy into their work. With a good referral, they strengthen the business relationship with their network.
However, this is also the reason why you must first do excellent work before you can benefit from referrals. So, combine a customer satisfaction survey with referral marketing!
A simple "Who else in your business circle might also be interested in our services?" for example, is communication on an equal footing - and at the same time, a test to see if the customer was truly satisfied or just doesn't dare to criticize.