Lost Referral – How Many $$$’S Did You Lose?

Have you ever wondered what a lost referral may have really cost you? Just how many SS$’s did you lose?

A friend of mine was seeking some advice and guidance as he was about to buy a new car. He was telling me he was in the same situation that I was in when I got our last car—it wasn’t so much about a particular make and model, but more about what it was needed for.

Now, I don’t buy new cars that often, as I prefer to wear them out. So my last dealing was four years ago. However, I was really impressed with the salesman as he helped me to get just what I needed and at the right price. It really was the salesman that made the difference in this transaction and not the dealership per se. In fact they didn’t impress me much at all.

“Yes, you really need to talk with him,” I said “I can see what he looks like, well sort of. Now who was he?”

Herein was the dilemma, I couldn’t complete the referral because I had forgotten who he was. Unfortunately his referral was now a lost referral. I wasn’t prepared to recommend the dealership.

Like most sales people and businesses, after he made the sale he failed to keep in touch. I wonder how many referrals he has lost over that time.

Suppose he had stayed in touch.

On the other hand, let’s look at a different scenario. Suppose he had stayed in touch and not let me forget him. Let’s say he sent me just three cards a year for the last four years. Let’s say he sent one for my birthday, one for Christmas and one on the anniversary of my car purchase. That would be twelve cards—twelve contacts with me to remind me who he was. Even more importantly, he would have established a friendly relationship with me. This would make me even more inclined to recommend and refer him.

Using SendOutCards, this exercise would have cost him less than $35.00. If using regular cards and preparing and posting them himself, maybe $75.00.

Had I remembered him, my friend would almost certainly have bought from him. His commission = $??? Lost! His commission minus $35-$75 to stay in touch = $??? Lost and I venture to say, a whole lot more than $35-$75.

The question is – how much has a lost referral cost you in profit or commission? How much might you be missing in lost referrals for the sake of a few cards to stay in touch?

1. Sue is making noises about getting another car. Pity he didn’t stay in touch.

Don’t allow yourself to get into this position. Contact us and we will show you how you can easily and economically stay in touch with your customers.