Referrals Are
Potential Gold Mine of Revenue For Utilities That Commit to Pursuing Them
By David Saxby
Customers are not just a source of
ever-growing revenues for utilities that sell more than traditional
electricity service, they’re a potential gold mine for referrals that can
generate even more business.
Satisfied customers can be a wealth of referrals for utilities that sell
such nontraditional services as high-speed Internet access, cable TV and
long-distance telephone. All the utility has to do is ask but it must be
handled appropriately.
Following are 10 tips on how to generate referrals.
Tip No. 1. Create a systematic process. Referrals are often random.
Create the repeatable system. All customer service representatives, sales
representatives and outside technicians should ask for referrals in the
right situations. People need the track to run on, so create the system.
Tip No. 2 Acknowledge referrals. When you receive a referral, send a
note to your customer letting them know the referral contacted you and that
you greatly appreciate it. Why would they send another person to you if they
don’t feel you value them?
Tip No. 3. Reward those who give referrals. What’s in it for your
customers if they send you referrals? Usually nothing tangible. Referrals
are valuable. They’re gold. Create an appropriate reward system. This will
greatly increase your flow of referrals. It doesn’t need to be anything
expensive. This is an area where ‘it’s the thought that counts’ truly
applies.
Tip No. 4. Educate customers on all your services. Your customers may
not realize what you have to offer in the way of additional products and
services. If they know what you have to offer, they may be more likely to
use your services and also refer a colleague, friend or family member.
Tip No. 5. Educate and sell on your Web site. A customer may refer
someone to your Web site for additional information. If your Web site is
confusing or doesn’t give adequate information, a potential new customer may
become frustrated and choose not to call you. Your Web site is a tool for
selling and educating. Make sure it does precisely that.
Tip No. 6. Tell customers what you will do with a referral. When a
customer is thinking about giving you a referral, they may worry that the
people they send to you will be hounded by your company and given a hard
sell. Tell your customer what actions you will take so they are comfortable
giving you a referral. If they have negative preconceived perceptions, it is
your responsibility to change them.”
Tip No. 7. Ask for referrals. The biggest mistake utilities make is
that they presume customers will give a referral without being asked to do
so. They hope the referrals will come but they never actually ask for them.
Design a system and script that will make asking for referrals a comfortable
process for your people.
Tip No. 8. Stay in touch. Your marketing department needs to keep
your utility’s name in front of your customers in a variety of ways. Use
every available resource as an opportunity to educate and sell.
Tip No. 9. Educate yourself. There are lots of effective referral
strategies. Make use of the Internet, bookstores and libraries to educate
yourself on others’ successes and failures. You will find wisdom in other
companies’ experiences. Seek it out.
Tip No. 10. Commit yourself to generating referrals. It all starts
with a commitment to learn which referral strategies work, determine the
best ones for you, create a plan and then follow through with unwavering
persistence.
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David Saxby is president of Measure-X, a Phoenix,
Ariz.-based measurement, training and recognition company that specializes in
customer service and sales skill training for utility companies. He can be
reached at 888-644-5499 or via e-mail at
david@measure-x.com. Visit the Measure-X Web site at
www.measure-x.com.
