THE RACR FRAMEWORK
REFERRAL ACQUISITION AND CUSTOMER RETENTION: THE BEST WAY TO GROW YOUR BUSINESS
Businesses that last are built on real connections and great relationships. When you show your thoughtfulness by delivering great resources and having engaging conversations with your customers and referral parters, they are going to have better overall experiences and be much more likely to pass on referrals to you.
When you’re not available for a prospect, or a past customer can’t find your contact information to share with a friend, you miss opportunities for new business. The loss of a referral lead or a recurring customer is detrimental because the cost to acquire that business elsewhere will be much higher.
THE BETTER WAY TO GET REFERRAL BUSINESS
Referral business is the best business. They come at a lower cost, are more likely to close, and close a lot faster.
A lot of companies stay afloat because of referral business, but most referral processes are clunky and leave you with a lot of missed opportunities.
WHAT’S A MISSED OPPORTUNITY?
Any opportunity that you could have turned into revenue for your business, but didn’t — that’s a missed opportunity.
Missed opportunities in your referral process slow business growth and increase your client acquisition costs.
REFERRAL ACQUISITION AND CUSTOMER RETENTION (RACR) FRAMEWORK
WHAT IS IT?
The Referral Acquisition and Customer Retention Framework (known by fans as the “racer” framework) is a process to help illuminate blind spots in your business to eliminate missed opportunities for business growth.
Use this framework to streamline your referral process to capture more of the best leads available, find ways to be more available for your customers without driving yourself crazy, and simplify your transactions with your customers so you can deliver the best service possible and retain more of your existing client base.
WORKING TO ELIMINATE MISSED OPPORTUNITIES
Assess your referral process for any extra friction you’re putting between you and your prospects, clients, and referral partners:
- Always Available – What roadblocks are in your referral process that keep your clients from connecting with you? Do you have outdated contact information floating out there? How can you make yourself more accessible when your prospects need you?
- Know the Customer – Review the roadblocks that you inadvertently be putting in front of referral partners and potential customers through the information you share. What information are they looking for that you’re not providing?
- Recognition & Rewards – Some of the easiest roadblocks to remove from your referral partners (and clients who could become referral partners!) fall under this section. Who do you need to thank? A little gratitude goes a long way for establishing rapport and building your referral network!
Eliminating noise is about discovering where you’re unnecessarily wasting energy that could be better spent elsewhere:
- Right Channels – Which digital channels, devices, and types of promotional assets are you using that force you to fight for attention when you don’t need to? Focus on the channels that are the most effective (and profitable!) use of your time. Cut the fat to reduce the noise between you and the people you are trying to reach.
- Relevant Content – Once you have a better idea of what information your prospects need that you’re not providing, you can consider the other side of the coin: what information are you providing that your audience doesn’t need?
- Clear Value & Incentives – These are your differentiators. What are some other ways you’re not clearly communicating your value and incentives to your referral partners and prospects? Stop causing confusion and distractions by eliminating the noise around your value and incentives.
Building a powerful network takes time and energy — and a certain social finnesse. Here are some great first steps:
- Valuable Relationships – Hands down, this is one of the biggest mistakes made when trying to build a network. Every person you meet is valuable. Thinking of relationships as a commodity does nothing for the success of your business. How can you keep your eyes open to more “unexpectedly” valuable relationships? How can you make yourself more valuable to others? When was the last time you freely sent someone else a referral?
- Trusted Resource – How can you be more honest and trustworthy in the eyes of your customers? Is the information you share valid against the market and industry thought leadership? Is your message consistent? Are you integrous?
- Easy to Refer – If you aren’t noticing more referrals flowing in after you’ve removed roadblocks and noise, that’s a red flag that there’s something else holding people back. Ask yourself: are you well-liked in your community? Will people feel good about being associated with you, sharing your information with their network… and sharing their network’s information with you?