Nothing grows a business faster than referrals. Why? Because a referral often comes from a trusted source and you are starting at a higher level with the person referred than with someone you cold-call.
There are two schools of thought about referrals. One says to ask for them, and the other does not. We will take a look at both so you can try them out and decide for yourself which works best. Also, there are other people to ask for referrals than your current customers.
Word of Mouth
Some of the best referrals are from word of mouth. One of your customers spontaneously tells another person about your childcare business. You have impressed someone so deeply that your business gets trumpeted to others without any extra effort on your part.
Congratulations! You have won the lottery of referrals. Thank the person who gave the referral with a note, phone call, or a small gift. You may get another referral out of it from that same person, who is happy to have done something for you and you reciprocated.
It would worth it, also, to take this person to lunch or out for coffee to pick her brain. If you can determine what stood out about your service, you can make sure you maintain it as a differentiator for your business. It can also act as a springboard for other services or activities that draw people to your center.
Ask for Referrals with Childcare Software
It makes some business owners uncomfortable but the best thing you can do it teach yourself how to ask for referrals. Make the request part of a common conversation you have with parents.
- Ask for referrals at the beginning of the relationship. Ask parents to refer you to others looking for childcare services if, after the first month, they feel you have provided exemplary service.
- If a parent pays you a compliment on your childcare program, say, "I'm so glad to hear it. Do you know anyone else who could benefit from my program?"
- Ask for referrals as a regular part of meetings with parents.
- Used childcare software to ask for reviews of your program.
For motivation, set a goal for asking for referrals, say a weekly goal of three referrals requested each week.
Don’t limit yourself to current parents. Ask business associates, acquaintances, and prospects for referrals. You may not meet the needs of a particular person, but that person could have a friend looking for the exact service you provide.
Be specific when asking for a referral; your customers and business associates won’t know the details of your program off the tops of their heads. If your program is limited to a certain age range or you have a special program, tell them so they can pass the news along to the right people.
Teach your customers how to refer to you.
- Give them a cheat sheet with your value proposition and testimonials.
- Include a box in your printed or electronic newsletter with the same information.
- Show them how to provide a review online.
- Put a request for referrals on the back of your business cards.
- Remind your customers to refer you.
The point is to ask regularly for referrals. If you feel uncomfortable, find a way to ask that fits your personality and then push yourself out of your comfort zone.
Don’t Ask for Referrals
According to Steve Gordon, author of Unstoppable Referrals, asking for referrals makes you a supplicant, which may make you uncomfortable. If you are uncomfortable, people can sense it, and the request for a referral may not make any headway. There is a potential for relationship damage from asking for referrals, also.
What if you ask for a referral from someone who recommended your service to a friend? Then, what if that friend isn’t impressed for some reason? Your original customer will feel bad for her friend and will be uncomfortable with you.
The way to get business without asking for referrals is by giving something of value to your customers that can be passed on to a prospect. Find something unique and interesting that tells something about your business that a customer can’t wait to pass along.
To make this method more effective, do all the heavy lifting for your customer. You send her friend the gift and say it was from your customer. When her friends show their appreciation, she is more willing to make other referrals without you asking.
The gift can be a guidebook for finding childcare, a book that talks about childhood development, or anything else that makes a memorable, positive impression.
Other Areas to Seek Referrals
Get referrals from people who are not your customers but who may know parents looking for childcare.
- Joins mothers’ groups, resale groups, or garage sale sites, all of which are frequented by parents of young children.
- Add a line to your email signature that lets recipients know you have openings.
- Put your business name on a list at a referral service, or to teachers and other adults at the local schools and churches.
- Real estate agents in booming towns and cities appreciate being able to help prospective new homeowners from out of the area.
Join the local daycare association and other networking groups. Make the most of the groups by setting a goal of talking to a certain number of people at each networking event or meeting. Plan what say in advance, so you sound enthusiastic, interesting, and spontaneous when you mention you have openings in your programs.
Be generous with referrals yourself. Anytime you can bring two connections together or make introductions between two people with related needs and services, you reap points. Eventually, one of those people will do the same for you.
And always, always, always thank the person for the referral with a note, small gift, or lunch to keep the goodwill flowing.
Of all the leads generated from a marketing campaign, referrals from a satisfied customer are the most qualified and most likely to turn into a sale, especially for childcare. Parents need to know they are entrusting their children to the right person. Knowing someone who already trusts you with their children smooths the way.
Get in the habit of asking for referrals from your current customers, business associates, or networking acquaintances or, if it works better for you, don't ask for a referral. Rely instead on creating a valuable gift you can attribute to a current customer or someone's friend. Give referrals yourself and others will return the favor.
Just get out there and get referrals in the most effective way for you. Your business depends on it.
