After a few email exchanges to determine how she was approaching clients, I was a bit stunned to learn the way Donna was going about it. In a nutshell, she would send her clients thank you notes and include about a dozen of her business cards, asking them to hand them out to others who might need her services.

Yikes!

Now, let me first say that the thank you note is a great idea. But the sincerity of appreciation is kind of kicked to the curb by asking the client for something in return. At the very minimum, when asking for referrals keep the same client-benefit perspective in mind that you had when you first attracted the client to you.

Donna is a seamstress, so here are just three things she might do differently:

1.  Use “give to get” enticements.

Instead of enclosing business cards, Donna could enclose a few small postcards that offer a 20% discount on services – for BOTH the referrer (your client) and the referral (your potential client).

The message she would be sending would say, “thank you” in a beneficial way by giving something to get something: the offer benefits your client, and it allows that client to pass on a benefit to someone else.

2. Partner with a complementary business.

Donna’s business would share clientele with (without being a direct competitor of) a nearby dry cleaning service. The two businesses could simply agree to place business cards at each others’ place of business. Better yet, they could each print up discount coupons for customers to take.

3. Propose a direct mail joint venture with a complementary business.

Donna could seek out one or more complementary businesses (like the dry cleaner) to propose sharing the costs of a promotional mailing. Each business contributes an equal number of contact addresses and they share the printing and mailing costs.

Asking for referrals doesn’t have to be elaborate and it doesn’t have to be difficult but it does have to be well thought out. Think through the process and place yourself in the other person’s chair. What would entice YOU to pass along a referral? Then act and react so that it becomes effortless and profitable.

We give it out to (almost) anyone who asks for it.

We conduct research and gather valuable information with it.

We rely on it for communication with associates, friends and family.

“It” is e-mail. And there’s no denying that e-mail is as common of a communication tool as telephones — maybe even moreso. Regardless of whether or not you have a Web site, if you are NOT using e-mail marketing for your products and services, you are ignoring a very low cost (and often no cost!) marketing tactic with high-return (and profit) potential. Why not squeeze every ounce of communicative powers e-mail has when dealing with clients and customers?

How? By using this easy four-step process:

Step 1. Develop a list of Frequently Asked Questions

Every business receives telephone calls from customers/clients or potential customers/clients asking for the same information over and over again. Retailers get questions like “Where is the business located?”; “What are your store hours?”; “Do you sell such-n-such brand name?”; “What is your return policy”, etc. Service businesses field calls asking for a description of services, pricing, and credentials or references.

Make a list of the calls your business gets most often and use this list to document these frequently asked questions – along with the answers.

Step 2.  Add an opening and closing paragraph to each document.

For each response:

1. Add an opening paragraph that specifically thanks the customer/client for requesting the information,
2. Provide the information, and
3. Add a closing paragraph that, again, thanks them for requesting the information.

Sign off with a specific contact name and phone number with an invitation to contact you directly for further assistance, to place an order, set up a meeting, or whatever else might be a “next step” to continue the communication. If you have a Web site, be sure to list it here and invite readers to visit it to find out more about the company, products, services, you, etc.

Step 3.  Develop a follow-up e-mail.

Just as you would initiate a follow-up phone call with a prospect, so should you prepare a follow up e-mail. Prepare a message to be sent a day or two (or longer depending on the information requested) after the first one. This e-mail should ask recipients if they received the requested information and if there are further questions you can answer. This would also be an appropriate time to announce a current special or sale, offer a limited-time-only discount, or introduce a referral program.

Step 4. Create a computer file containing the questions and answers.

Set up a folder on your computer that contains as many Q & A documents and follow up e-mails that make sense for your business. Some of the information may be best combined into one document, like store location and business hours. Other documents will require separate files.

The objective is to be able to easily access these response files so you can quickly send them to people asking for the information.

Once you have these documents ready for use, USE THEM! The next time you get a phone call asking for information you have created in your Q&A file, you can say, “I’d be delighted to give you that information. Do you have e-mail? I can send it to you right away!”

As your list of email addresses grows, so does the opportunity to reach a targeted group of current and potential customers with updates, promotions, or special offers. This kind of list is a small business marketer’s goldmine. Start building your list today!

Note: The above article is an excerpt from a more in-depth how-to for using this marketing tactic. The remainder of the article can be found in “29 Ways to Increase Profits and Productivity” – the FREE eBook available by entering your name and email address in the above right-hand box.

The best advisory boards are made up of business owners and professionals who will ALL benefit from its formation. Here’s how to put one together:

Itemize the “give and take.”

Make two lists: one of the skills and expertise that you have to offer others, and another of the skills and expertise that you need (from others) to better operate your own business.

For instance, are you a whiz at dreaming up great promotions but a bust at understanding the tax laws that affect your business? Can you cold call with the best of them, but unsure of how to put together an impressive client presentation?

Knowing what your strengths are and where your weaknesses fall will help to determine whom to approach about forming your mutually beneficial advisory board.

Seek out potential board members.

Finding your board members may be easier than you think.

Do you belong to an association or the local chamber of commerce? Don’t just attend the meetings – network to find good board member candidates and to spread the word about what you’re trying to accomplish. Ask contacts for other names of entrepreneurs, chief executive officers of small, privately held companies or consultants to small businesses. Talk to your banker, vendors or accountant and ask them for leads. Review the business section of your local newspaper or specific business listings from the yellow pages of a telephone directory.

Contact each prospective member individually.

Once you’ve chosen candidates, call each one to introduce yourself, discuss your objectives and determine mutual benefits of forming the board. If you do not personally know the individual, invite him/her to lunch to get acquainted. Tell prospective board members about your business, market and specific challenges. Invite them to tour your offices and meet your employees. Give them your company brochure and relevant industry information.

Know what you want to accomplish.

How often you meet will be determined by what you want to accomplish. There may be times when one-on-one meetings will be more productive, but schedule full board meetings no less than quarterly to solicit input and feedback about your specific business objectives, progress and accomplishments. Remember that members are there to ADVISE you, not to do the work FOR you. While you may eventually decide to barter for services with other members, that is a separate action from the intent and purpose of an advisory board, and should be negotiated outside of the board meetings.

Be prepared to get what you ask for.

Understand that when you ask for advice, honest feedback and others’ opinions, criticism will often creep into the mix. Suppress your natural reflex to defend your actions, listen to your peers and use the information constructively.

Final thoughts . . .

If an advisory board sounds too formal for your fledgling business, but you still need access to one-on-one expert advice, contact the nearest chapter of SCORE. This organization of retired executives can prove to be an excellent resource to help answer your questions and connect you with free or low-cost resources.

– Abraham Lincoln

Abe was probably talking about leadership, but the above quote is excellent advice for marketers. Go in the direction your customers want to go, and it will be an easier sell. In other words, make sure the marketing you do for your products and services reflect what your customers want, not what you want them to have. Marketing based on convincing someone he or she “should” have something is less effective than marketing focused on what your customers are already convinced they want. If you’re struggling with a SHOULD marketing strategy, heed Honest Abe’s advice: “ride a horse in the direction it’s going.”

So what can we do? Methods for lead generation revert back to more traditional advertising and publicity tactics in order to “pull” customers toward your business, rather than “pushing” your products and services toward the customer. Either advertising budgets will need to be larger, or campaigns must be more targeted.

For many of us, efforts to get new leads will result in a higher cost per customer. Those leads need to be carefully tended like seeds planted in a new garden. To achieve cost-effective results, it is imperative that your follow up practices produce greater conversion rates. In other words, “seed those leads” to make them grow!

Here are five ways to refocus on lead conversion for better profits:

1) Don’t take “no” for an answer, without asking, “why?”

If you’ve amassed a database of leads, then you have in your possession people who initially expressed a “yes, I’m interested” response to your offer. When you conduct your first follow-up with that lead, don’t simply take, “no” as the answer. You need to find out WHY they’ve suddenly lost interest in something that initially attracted them to your product or service. Only then can you begin to address objections, and refocus your approach to find out what they want – and give it to them.

2) Ask permission to keep leads on your follow up list.

Every “no” doesn’t mean “never” – it often means “not now.” The price might be more than they can afford, the timing may be wrong, etc. Accept a “no” for the immediate promotion, but be sure to reinforce the benefits of remaining on your follow up list (i.e., they can receive valuable information, notification of special promotions on other products and services, discount offers, new product or services being introduced, etc.). Give people a reason to want to hear from you again.

3) Create a follow up system that starts and ends with you.

Too often, businesses do everything right to attract new leads, yet fail to do much to keep them. Capture contact information to build your database of potential, future buyers.

If you have a retail business, you may advertise a special promotion to generate traffic coming in the door, but you must also give them a reason to give you their contact information so you can continue to market long after the initial promotion ends. Use prize giveaways, signups to win free merchandise, or a shopping spree, etc.

If you have a service business, you might generate leads by offering a free report, analysis, or quote. Don’t send out literature to inquiries and then sit back and wait for a response. YOU must follow up to make sure the information was received, remind them of benefits, advise them of discounts, find out their objections, etc.

4) Develop total recall.

Keep detailed files of customer feedback and responses so your future follow-ups are specific to their concerns and purchasing roadblocks. Prices too high? Quality poor? Selection too small? Service too slow? Hours of operation inconvenient? You can’t overcome objections if you don’t know what they are! The more you show your customers and clients that you listen to their concerns, the greater your chances for acquiring – and keeping – a loyal customer.

5) Ask for and reward referrals.

Word of mouth advertising rarely just happens. Promoting your business will seldom be at the top of your customer’s “to do” list. However, providing incentives for your customers to refer you to others, will give them a reason to consciously do so. Use your marketing and sales history to determine your cost to acquire a new customer, and the lifetime value of a loyal customer. Use these figures to determine the incentives you’ll use for both the referring customer, and the potential new customer.

The cost of attracting potential new business is high. Now, more than ever, lead conversion is a critical component of your sales process. Never let a lead go by without doing everything you can to convert it into a buying customer, or a paying client. Take the time to “seed the lead” and you’ll see a steady increase in your profit column.