In the automotive industry, referrals are golden. They’re not just a way to gain new customers; they’re a testament to your service quality and customer satisfaction. However, many dealerships struggle with effectively asking for referrals. Here are six proven strategies to boost your referral game and grow your business.
1. Be Direct
It’s a common misconception that simply mentioning “we like referrals” is enough. This passive approach is often overlooked and rarely effective. To truly harness the power of referrals, you need to be direct and proactive.
Do:
- Explicitly ask your customers for referrals
- Make it a standard part of your customer interaction process
- Train your staff to confidently request referrals
Don’t:
- Rely on vague statements or hints
- Feel sheepish or apologetic about asking
Remember, getting a referral is the highest compliment you can receive. It means your customer trusts you enough to recommend you to their friends and family. If you’ve provided excellent service, you’ve earned the right to ask for referrals.
2. Make it Personal
In our digital age, it’s easy to fall back on mass communications. However, when it comes to referrals, personal touch is key.
Do:
- Reach out to each customer individually
- Use phone calls or face-to-face interactions when possible
- Leverage opportunities like service department visits or chance encounters outside the dealership
Don’t:
- Rely solely on mass emails or generic postcards
- Use automated systems for referral requests
Studies show that personal requests generate 41% more referrals than broad messages via email or postcards. This significant difference underscores the importance of personalization in your referral strategy.
3. Be Specific
When asking for referrals, specificity is your friend. It helps your customers focus and increases the likelihood of them remembering your request.
Do:
- Ask for “one or two people who might be in the market for a new vehicle in the next six months”
- Mention specific car models or types if appropriate (e.g., “Do you know anyone looking for a family SUV?”)
- Provide examples of ideal referrals (e.g., “Perhaps a coworker who’s been talking about upgrading their car”)
Don’t:
- Ask broadly for “anyone who needs a car”
- Overwhelm customers with too many options or scenarios
The more specific and relatable your request, the easier it is for customers to think of potential referrals. It also shows that you value their time and aren’t just fishing for any lead.
4. Make it Easy
In today’s fast-paced world, convenience is king. The easier you make it for customers to refer you, the more likely they are to do so.
Do:
- Offer to follow up with the potential referral directly
- Provide multiple ways for customers to share referral information (e.g., phone, email, online form)
- Create referral cards or digital assets that customers can easily share
Don’t:
- Put the burden of contacting the referral on the customer
- Make the referral process complicated or time-consuming
If a customer trusts your professionalism, they’ll likely be comfortable sharing contact information. However, always respect their preferences. If they’re hesitant, offer to follow up with them later about potential referrals.
5. Be Repetitive
Asking for referrals isn’t a one-time event. It should be an ongoing part of your customer relationship management.
Do:
- Create a calendar for regular referral requests
- Use varied methods of contact (e.g., calls, emails, social media)
- Time your requests strategically (e.g., after positive experiences, during vehicle anniversaries)
Don’t:
- Ask only once and then give up
- Become overly pushy or frequent with requests
Remember, your customers’ networks are constantly evolving. Someone who couldn’t provide a referral six months ago might know the perfect candidate today. Regular, gentle reminders keep you top-of-mind when opportunities arise.
6. Follow Up
The referral process doesn’t end when you receive a name. Following up is crucial for both maintaining customer relationships and maximizing referral potential.
Do:
- Thank customers promptly for their referrals
- Use personal, thoughtful gestures (e.g., handwritten notes, small gifts)
- Keep the referring customer updated on the outcome (within privacy constraints)
Don’t:
- Ignore or delay acknowledging referrals
- Rely on monetary rewards or discounts as your primary thank-you
According to behavioral experts, non-monetary gifts often establish a deeper sense of loyalty and appreciation. They feel more personal and less transactional. A thoughtful thank-you note or a small, personalized gift can go a long way in strengthening your relationship and encouraging future referrals.
By implementing these six strategies, you can create a robust referral system that not only brings in new customers but also reinforces your relationships with existing ones. Remember, every satisfied customer is a potential ambassador for your dealership. By asking for referrals effectively, you’re not just growing your business; you’re building a community of loyal customers who believe in your service.
