The Myth of Goodwill

[Mr. Ingram's Computer Repair & Shoppe]

i suspect you are not being entirely forthcoming with this story. It sounds very much like an arrangement with a lucrative carrot. An accountant would not extend energy and time if it was not a healthy incentive. So this doesn't fit the scenario of referral in the gist of what we are talking about.

I'm starting to suspect you aren't as good with computers & more importantly people as you think. It's amazing how much one person talking about your business can change everything. You'd be surprised how often I tell people to go _____ and ask for _____ to help you. I will cancel my lunch if a certain person is not cooking and will order elsewhere, and I tell people, if Terra isn't there, don't order, because you wont be as happy with your meal.

I am loyal to a rather high extreme though, so I may just be the unique case.

 

[fencepost]

i suspect you are not being entirely forthcoming with this story. It sounds very much like an arrangement with a lucrative carrot. An accountant would not extend energy and time if it was not a healthy incentive. So this doesn't fit the scenario of referral in the gist of what we are talking about.

We were providing IT services for them, pretty much with instant response because they were downstairs in the same building (they've since moved, though not far), and when the accountants were on-site at customers (generally monthly or quarterly) they were discussing what business issues the clients had and sometimes suggesting solutions. In some ways it might have been like an informal BNI group - if someone we were working with needed an accountant, we referred them. If someone they were working with needed IT, they referred us. I have no idea if they were doing anything similar with other vendors.

I wasn't involved in most of the discussions at the time, but I think it broke down because they were talking about buying us out and having basically an in-house IT department. Several years later they still don't have anything resembling that that I've ever heard of, and I'm not sure who they're using at this point for IT services.

So, perhaps if we'd been paying them referral fees or a continuing share of revenue from clients they referred we'd still have that arrangement, but at the time there wasn't anything like that.

We still get referrals from our client base to new clients, but that doesn't compare to what we had in place. There's been a lot of change in how medical practice managers interact with each other as well - until maybe 5-8 years ago a huge number of the practice managers would get together for meetings at the hospitals they were associated with and talk about everything business related. According to my talks with a recently-retired PM from a customer, that's changed a lot as many of those folks retired and the younger ones don't do any of that kind of getting together. There may be a bit of it going on social media, but I think for the most part they're just more isolated.

These days I think it's as much doctors talking with each other when they're at hospitals as anything else.

 

[GTP]

Mick says in the movie The Castle, you're dreamin.

Excuse me? Are you implying that we who run our businesses on referrals are being somewhat untruthful?
With all due respect your the one that's dreaming.
As I stated above I don't advertise at all now and ALL my business is from referrals and word-of-mouth.


sniff sniff..... I smell a troll.....

@Nige

 

[glricht]

For many years we've done almost no advertising as 90+% of our new customers are referrals from other customers. In my personal opinion, if referrals are not a large part of a business's new customers, then either their technical capabilities or their customer relationship skills are suspect.

 

[glennd]

For many years we've done almost no advertising as 90+% of our new customers are referrals from other customers. In my personal opinion, if referrals are not a large part of a business's new customers, then either their technical capabilities or their customer relationship skills are suspect.

To me, referrals, along with return business, is a measure of whether I'm getting it right. Lots of referrals means my customers are happy. Often customers ask for more business cards as they've given them all away. A happy customer is the best possible advertising.

 

[GTP]

+ 1 this ^^^

You know you're doing something right when clients actually ask for business cards to give to their friends/family and associates.

 

[timeshifter]

i suspect you are not being entirely forthcoming with this story. It sounds very much like an arrangement with a lucrative carrot. An accountant would not extend energy and time if it was not a healthy incentive.

What a weird thing to say.

 

[Mr. Ingram's Computer Repair & Shoppe]

To me, referrals, along with return business, is a measure of whether I'm getting it right. Lots of referrals means my customers are happy. Often customers ask for more business cards as they've given them all away. A happy customer is the best possible advertising.

I never hand out business cards, I leave a pile on the desk of about 20-30. Gotta restock it every week, people always take them. Some when they drop the computer off, most when they pick it up. Not being pushy is an amazing tactic!

 

[Krynn72]

I never hand out business cards, I leave a pile on the desk of about 20-30. Gotta restock it every week, people always take them. Some when they drop the computer off, most when they pick it up. Not being pushy is an amazing tactic!

Yep. Last shop I worked at, before leaving for my own thing, had two check out computers and right in front of where the customer would stand was a repurposed heatsink holding several business cards. Probably something like 85% of people took one or more when they dropped off or picked up. I payed attention a couple times and watched someone who dropped something off, took a card, and the next day when picking up they'd take a few more. I never said anything, never asked for referrals, they just took a few to give out since they were happy.

The only times we gave out cards ourselves was when we did "pro-bono" quick fixes over the counter for easy stuff and told them their payment could be to "tell someone about us!" and we'd give them a few. I know we got a lot of real customers from that.

Some have mentioned free work for referrals could bring out the cheapskates, but I have no evidence of that one way or another. We had plenty of them anyways and I do know that it brought in at least a few paying customers who came in with the guy we gave the cards out to.

 

[Mr. Ingram's Computer Repair & Shoppe]

I know some have mentioned free work for referrals could bring out the cheapskates, but I have no evidence of that one way or another, but we had plenty of them anyways and I do know that it brought in at least a few paying customers who came in with the buy we gave the cards out to.

There is a difference in doing free work because someone can't afford you, and doing free work because someones brain hadn't turned on yet, and they "derp".

I've had plenty of customers come in with "problems" and turns out to be the time got set to some BS timezone, or they can't open a .PDF because the "default program" is some stupid setting... I change it right up, and send em off. But for people who come in and want me to reset their email password and create an email shortcut on their desktop, and install firefox with adblocker, oh, and show them how to create bookmarks, and how to add contacts to their email address book... yeah, those people, I charge them.

 

[Bryce W]

what do you think? i know some people in a community or village in the uk are different, but in the average aussie suburb you'd be pushing it to get referrals.

As an Australian in a large city, I do believe its different for us compared to small town US/UK where a large number of the members here are from. I do think its slightly harder because people in big cities are really spoiled for choice.

That said, if you are good, you'll get referrals whether you like them or not. People want to recommend good people to their friends.

Now "good" isnt just about technicial skills, but also how personable you are, how you treat the customer, how much value you offer vs price. If you arent getting referrals then there is a problem with one of these. Similar to a doctor, they can be a very skilled, but if their bedside manner isnt good then people will turn away.

We dont know you though, so its up to you to determine what needs to be worked on. Its all just part of finding that formula that works for you.

 

[Mr. Ingram's Computer Repair & Shoppe]

As an Australian in a large city, I do believe its different for us compared to small town US/UK where a large number of the members here are from. I do think its slightly harder because people in big cities are really spoiled for choice.

Agreed here, I do have the benefit of small-town USA. My closest competitor is over 15 minute drive. While on the otherhand I have some customers that drive 40 minutes to come to me. But yes, small town does make a difference, I ran into a customer in walmart today (Don't hate me, I hate myself for shopping there) and I stopped and asked them how everything was running.

That said, if you are good, you'll get referrals whether you like them or not. People want to recommend good people to their friends.

This is also vice-versa, if you screw someone, they are much more likely to talk about you, in the not-so-good way.

Now "good" isnt just about technicial skills, but also how personable you are, how you treat the customer, how much value you offer vs price. If you arent getting referrals then there is a problem with one of these.

I almost feel like the technical skills is the lowest on the list. I find in my area that people want to understand the problem and how they can avoid seeing me again. Yeah, I fixed their problem and got my $150, but I find myself often going over with them how they can prevent their problem from happening again.

Fixing the problem is why they are paying me. Telling them how to avoid the problem and fix it themselves is why they talk about me.

We dont know you though, so its up to you to determine what needs to be worked on. Its all just part of finding that formula that works for you.

yeah, I like this. What works for me, will most definitely not guarantee equal results for you. It could also be illegal for you!

Just a couple days ago I had several handguns pulled out in my shoppe, we were talking about what we carry and what we like about different models. I made a real connection with a customer and he ended up bringing in 3 computers. I made a good chunk of money, and he got a small discount for being a good human.