Every business has ‘referral leakage’.
‘Referral leakage’ is the difference between the number of times customers RECOMMEND your business and the number of REFERRALS you actually receive.
There’s always a discrepancy between those 2 numbers!
You can fix ‘referral leakage’ in 4 steps …
1) Survey your customers to discover who’s been recommending you.
You can use a single-sentence survey to do this. If you’re familiar with Net Promotor Scores, it’s a similar process except you don’t ask people how likely they are to refer you, but how often they have recommended you.
2) Compare the number of referrals you’ve received with the number of times people have recommended you – you’ll be shocked at how far apart these numbers are.
3) Reach out to the people that have been recommending you with an educational ‘package’ that shows them how to refer people to you, instead of just recommending you.
4) Put a system in place to thank people for their referrals in future (NEVER monetary ‘rewards’!) and watch how your referred business grows exponentially.