Learn How To Grow Your Business By References
Business owners, do you know of a general insurance company that dealt with technical topics such as fire, flood, and factory insurance but received no references from their vendors, friends, or customers? Do you want your business to be referred with confidence by your friends, customers, and vendors, and grow through trust? Today, I will use the example of a general insurance company to explain how you can build trust and expand your business within your existing network.
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So, what exactly is a reference? It is a simple act of getting or giving a reference. When even a layman can confidently refer your business and benefit from it, that’s considered a correct reference.
Let’s delve into the example of the general insurance company and understand their approach. Due to the technical nature of their insurance services, their process was lengthy. When approaching a factory or manufacturer, they would analyze the existing insurance, provide a quotation based on their business risk, and recommend suitable coverage. These quotations would then be presented to their board or management team for approval. This technical complexity and their requirement for manufacturers with a turnover of 30-50 crore ₹ made it difficult for their connections to find suitable references, leading to a lack of referrals.
Upon conducting a thorough analysis, we suggested that they offer a free business risk analysis report to prospective clients, irrespective of their turnover. This free report would outline the risks involved in their business. With this approach, their existing customers and business connections found it easy to refer them. They would pitch it as a free analysis report, a valuable tool to understand the risks in their business. This strategy significantly increased the number of referrals they received. By educating factory owners about the risks in their businesses, they created a positive impression and tapped into their well-connected networks, resulting in even more references and significant business growth.
Now, consider implementing this approach into your own business. Regardless of your industry, make your business referable to even a layman. Ensure that those who give or receive a reference have 100% confidence in your capabilities, just as in the case of the general insurance company. By creating a strong reference point, you can enhance your business prospects, whether your domain is complex or straightforward.