Avionics News April 2018 - 51

of advertising. Here's why that's especially important:
In the know
Referrals are four times more likely to buy than nonWhen customers feel loved by your shop, you don't
referred customers, according to research firm Nielson,
have to do much to get them to share their affinity.
and two-thirds of companies that offer referral programs
And good for you; word-of-mouth referrals are the
say they close deals faster. Referred customers tend to
most-effective way to grow your business, according to
also be more loyal, according to the Wharton School
business coach Lisbeth Calandrino. But to do that, you
of Business, and they have an average lifetime value
must ensure you provide exceptional service; from there,
16 percent higher than customers who come from other
plenty of positive things follow.
channels.
That's the good news.
As it is, most happy customers
Unfortunately, there's bad
- eight out of 10 - would
news, too. Whether you like it
willingly refer you, according to
or not, you always need new
an Advisor Impact study, but only
customers coming into your shop.
about 29 percent actually do. The
Customer-service consultants
difference? They just haven't been
Bain & Company suggest that
asked in the right way.
the typical business can expect to
lose half its customer base within
Right to the source
five years from simple attrition.
Clearly, referrals require a process
Indeed, pilots eventually stop
to collect them, and you still need
flying as they age.
THE AIRPLANE OWNER
to guide customers toward sharing
You can dive into the process
FINDS A SOURCE WITH
their positive experiences. That
of minimizing attrition and
A
SOLUTION,
THE
comprises embracing why customers
maximizing recruitment by
REFERRING CUSTOMER
would refer you, and it includes
exploring the service you
GETS
TO
FEEL
GOOD
knowing when to ask - and whom.
provide. Ensure you're meeting
ABOUT HELPING A
If you're pleasing your customers,
the needs and expectations of
FRIEND,
AND
THE
you should be proud to ask for other
your customers by collecting
SHOP GETS THE NEW
prospects you could also serve,
feedback from them with regular
BUSINESS
FROM
THAT
according to consultant Kern Lewis.
surveys, follow-up interviews,
WORD OF MOUTH.
You do good work, and it helps
and the like. You want to hear
aircraft owners, so evangelize for
that customers enjoy interacting
your business. If that's new territory,
with your shop, feel that you
make it a goal to start asking for a
understand their problem,
certain number each week.
believe they're getting good
Recognize, too, that there are several kinds of referrals.
advice, and know that your product and service meet
Appreciate a name and email or phone number, but also
their requirements, according to Jeff Thull of strategic
know that it's a low-grade referral that still requires
consultancy Prime Resource Group.
you to cold call, according to Daniel Kehrer, director of
If they don't, you must make changes and tune your
content development for Business.com. Conversely, if
shop toward a customer-centric focus. Your employees
the customer writes a letter of introduction to warm up
can use that data to see how their efforts might better
the new relationship - or brings a prospect in for a visit -
contribute to the customer experience, to understand their
that's a strong lead and more likely to result in a business
current performance, and to learn where they need to
conversation.
improve - and you can coach them toward better results.
Conversely, when that data shows positive results, it
Continued on following page
can help inspire referrals - often without the expense

A QUALITY
REFERRAL
SOLVES
PROBLEMS
FOR EVERYONE
INVOLVED;

avionics news

april

2018

http://www.Business.com

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