Referral strategy is so important. It will make the biggest difference in your business if you can clone your best clients to have more just like them.
When you think back on how you’ve become successful and how you have cultivated relationships, you can probably trace a lot of your business back to around five original clients. These are the people you have on your team, the people who have referred you, the people who come back year after year.
These are what I call your hyper referrers. By tapping into them, you will inevitably tap into a market of new clients. Companies who run referral strategies typically see 10% to 30% increase in revenue compared to companies that do not have strategies in place. Therefore, using a referral strategy is exactly how you can continue to grow your business.
What is considered a solid referral strategy?
Answer: Strategies that ask for referrals, take really good care of these referrals, and then incentivize these recently converted clients to pass on referrals. By hitting these three points, you can clone your best clients and really grow your business.
The very first step is to write down the top five clients who have done the most business with your shop. You might need to take an hour to go through old inventory to see who these clients are, but the time is worth it to grab all of your hyper referrers.
If your ideal clients are the ones who make repeat purchases, then this is where your referrals will more than likely come from. For the jewelry industry, second or third generation clients are majorly important because they are very established in the jewelry community and guarantee not only purchases for themselves, but also potential new clients and purchases by anyone they refer.
Basically, they have a lot of referral potential.
When you’re done writing down the names of your hyper referrers, you should be able to conclude where most of them are coming from.
Do they all live in one area? Are they people in finance? What is the piece that ties them together?
In my company, I intimately know the people who have brought the most business into my shop. And by intimately, I mean that I know where they live, the industry they belong to and even the common traits they have with the people they refer to me. It is these traits that help me to decide where I am going to target my referral strategy.
Identify the trends and the patterns of your top clients. Once you have identified these, you can proceed to the next step.
The next step is figuring out an invite strategy. This is very important especially if you haven’t been in communication with these top five hyper referrers in awhile. Find a way to get them back into your shop and continue to grow your referral engine.
Maybe that is as simple as reaching out with a small gift of cleaning their rings for free or sending flowers on their anniversary. Whatever it is, just be sure to re-engage before you start asking for referrals, especially if it’s a lapsed relationship.
How can you give before you start asking for referrals? How can you reach out to clients who recently bought from you to ask for referrals?
The bottom line: how can you make sure that you are cloning your best clients and regularly keeping in touch with them? What will you take action on TODAY to make sure that your best clients tell all of their friends about you?
P.S. Here are TWO ways I can help you grow your jewelry business:
In this worksheet, I have the exact script that we use at the agency to re-engage with clients who have lapsed as referrals as well as the clients who have bought
recently. Cultivating your referral strategy will increase your revenue and clone your best clients. https://www.kathleencutler.com/referral-strategy-guide
If you’d like to work directly with me and my team to take your customers from window shoppers to collectors, visit www.kathleencutler.com and click on the LIVE CHAT window. Tell me a little about your business and what you’d like to work on together, and I’ll get you all the details!
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