How to encourage referrals that lead to better clients

Referrals are often described as the lifeblood of a business. That may sound like a cliché, but for many firms it is the truth.
A referred customer often arrives with trust already in place. They are more likely to listen, more likely to buy and more likely to stay. Yet most businesses treat referrals as something that either happens or it doesn’t.
In reality, referrals are almost never accidental. From our experience, they are the result of clear positioning and consistent follow-up. So here are some practical steps you can take to make referrals a steady and reliable part of your growth.
Be clear about who you help
One of the biggest barriers to referrals is vagueness.
If someone asked your customer, “Who would you recommend?”, would they know exactly who to suggest?
Instead of describing your business in broad terms, be specific. For example:
- “We design websites for independent cafés and restaurants.”
- “We help tradespeople move from sole trader to limited company.”
- “We work with e-commerce brands to help them sell more online.”
When people understand precisely who you are best suited to, it becomes easier for them to think of someone.
Ask at the right time
Timing makes a huge difference.
The most natural moment to ask for a referral is just after you have delivered something of value. Ideally, something that as really blown their metaphorical socks off! That might be when a project finishes successfully, when a customer gives positive feedback or when you solve their problem quickly.
A simple sentence is often enough, “If you know any other business owners like you who are struggling with this, I would really appreciate an introduction” or if you wanted to be even more direct, “Is there anyone you know who you think might benefit from our services as well?”
Stay visible
Referrals often come down to how often you cross someone’s mind. If clients only hear from you when you send an invoice, you are easy to forget.
Sharing a short client update email, commenting on their LinkedIn posts, sending a relevant article when you spot one, or arranging a brief catch-up call will keep you at the front of their mind. You are not asking for a referral every time, but you are reminding your clients what you do and that you do it well.
Top tip: Put a reminder in your diary to contact your best clients once a quarter, even if it is just to say hi or to see how they’re doing.
Avoid sounding overwhelmed
Many business owners answer, “How’s business?” with “We’re so busy.”
While that may be true, it can unfortunately discourage referrals. If people believe you do not have capacity, they are unlikely to introduce you to others. A better response might be that things are going well, and you are always keen to speak with the right type of client.
And remember, referrals work both ways. When you actively introduce your clients to useful contacts, they are far more inclined to return the favour. It is a simple principle, but one that is often overlooked.
Track where new work comes from
Finally, measure it.
Ask every new customer how they heard about you and keep a record. Over time, patterns appear. You may find that a handful of loyal customers account for a significant proportion of your introductions. Those relationships are worth nurturing.
When someone does refer you, acknowledge it properly. A handwritten thank you card, a small gift or even a personal message expressing genuine appreciation goes a long way. This extra effort reinforces the relationship and makes future referrals far more likely.
How we can help
We hope you have found this useful. If you have any questions about strengthening your business or would like to talk through your plans, we are always happy to help. To find out how we can work together, call us on 01904 787 973 or book a call with our team.