6
Priority 2 – Develop more business from existing customers and clients 95
Visitors or footfall. I recently came across a newsagent selling papers
and the usual newsagency fare. Knowing he had volume visits and
‘footfall’ from existing customers, he was generating extra income
out of his main base by taking and producing passport pictures in
his shop. He would pull down a screen with a plain background,
take pictures himself with a digital camera and print off a set of six
passport pictures in the back. He even offered customers coffee while
they waited.
Space. WH Smith now utilises its space and footfall in a large
number of its stores offering legal services from national legal brand
QualitySolicitors.
Database and membership. The AA now leverages plumbing and
home services such as boiler repairs.
What can you think of?
Ask your existing base to buy
If you don’t ask customers and clients to buy some add-on product or
service, then they probably won’t, and you will miss out on a large amount
of easily winnable potential business. It isn’t just enough to decide what
items or services you may be able to cross sell and to intellectually under-
stand the concept. You have to encourage all your people to be active and
to ask directly.
Golden rule 5 – Get customers and clients to
recommend and refer
How do you feel when you get a call from someone who says, ‘You have
been recommended by . . .’? You should feel great, for a couple of reasons.
Firstly, it means someone has been so satised with the previous sale that
they have enough faith to recommend you. Secondly, this business lead
or opportunity is free. You simply have to convert it now into protable
business.
Now let me ask you another question. How do you feel when recom-
mending people or businesses to others? It also makes you feel good,
doesn’t it? You actually derive a sense of satisfaction, pleasure and signi-
cance from helping others with your recommendations.
The anomaly, however, is that despite businesses wanting recommenda-
tions, referrals and introductions and people liking to give them, too many
96 The Financial Times Guide to Business Development
businesses sit back and simply wait for things to happen. Stop waiting! You
can stimulate referrals and introductions within your business by adopting
a few relatively simple strategies. Obviously some are more suited to specic
sectors and business types, so mix and match from any of the following.
Say thank you
When you do get an introduction from someone, make sure you contact
the person it comes from and say a sincere thank you. This isn’t just an old-
fashioned clichéd courtesy, it is good business development practice. The
more you show your gratitude or appreciation, the more likely the other
party will be to do it again.
Ask directly for introductions and referrals
When someone tells you how much they like your goods and services, ask
them outright: ‘Thank you so much. Do you know anyone else who might have
a similar requirement that you can introduce us to or we can contact on your
recommendation?’ If you’ve never done this, you’ll be surprised how often it
produces positive results.
Get into your contacts’ ‘contacts circle’
How many people do you know: 50, 100, 200, 1,000? It doesn’t matter,
the point is we all have our own personal and business contact circles. If
you provide helpful and useful informational material to your contacts via
e-mail, blogs or other social media networking platforms, the likelihood is
that it will be spread throughout their contact circles too. They effectively
become your indirect sales force.
Create business introduction incentive schemes
Providing you are ethically and legally allowed, consider introducing some
form of incentive scheme to get your existing customers, clients, contacts
or even staff to introduce you to new leads. This really works well. I recently
had two social contacts of mine arguing over which of them was going to
introduce me to a particular company in order to get their £50 gift voucher,
if and when I signed up. Note it doesn’t even have to be a monetary
incentive. I’ve come across schemes where people are rewarded internally
through other prizes or even internal awards.
6
Priority 2 – Develop more business from existing customers and clients 97
Seminars and events
If you are inviting your existing customers and clients to any events or
seminars you’re putting on, allow them to bring guests. This has many
benets. It means invited individuals are more likely to come if they have
company, invited businesses can be made to look good if they are able to
bring customers or clients of theirs to your event, and of course it directly
introduces you to new prospects who immediately become grateful to you.
Have a formal referral analysis programme
In many sectors it is the commercial norm to seek to foster the mutual
referral of business. For example, there is a high level of reciprocity between
solicitors, accountants and banks. The same applies between car dealers and
body shop repairers. If you are in a business sector that gives and receives
referrals, then start monitoring who you are giving work to, so you can
review these gifts of business against who you are getting business from.
Play referral swapping games with your competitors over
non-competing services
There will be occasions when you may offer some products or services
that some of your competitors don’t have and vice versa. Explore ways of
exchanging these.
Get involved in formal referral activities
There are many local and regional referral networks and clubs, and others
that are run by various social and business groups. Depending on the kind
of business you are in and your own personal skills, aim to participate in
these as they can be well worth joining.
Get active in social media networking sites
This activity is hugely important, so much so I have written a whole section
on it. (See Chapter 7.)
A final question on Priority 2
If your competitors think it is worth investing in targeting your customer and client
base . . . why don’t you?
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