Cracking the Referral Code

What's the secret to getting referrals? If you could figure that one out, just think of the time and money you'd save promoting and marketing your business. According to John Jantsch, author of the Duct Tape Marketing Blog, it's not a question of why people make referrals but who they refer. Jantsch suggests that customers make referral decisions the same way they make purchasing decisions: They get hooked emotionally, then back up their feelings with logic. In other words, they're more likely to consider how a product/service will make them look or feel before they check to see if it suits their needs, or if the price is right.

Money incentives don't work, Jantsch says. If you want more referrals, you'll have better luck once you figure how to establish an emotional connection with your customers, he says. Once you do that, a great price and tools that make it easy for customers pass on the good news about you never hurt.