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In No B.S. Guide to Maximum Referrals & Customer Retention, business coach and consultant Dan S. Kennedy and customer retention expert Shaun Buck present a systematic approach to help you keep, cultivate, and multiply customers so you replace income uncertainty with reliable income through retention and referrals. This edited excerpt discusses the importance of focusing on relationship-building instead of prospecting to grow your business.

Business owners think about marketing as outward, not inward, as external, not internal. They are focused marketing to the public, and new prospects, and never think much about marketing to their existent customers. Some build complex “marketing machines” for external purposes but never build a Relationship Marketing Machine. Most aim for sales. Few aim to create relationships that drive sales.

When you receive a referral from a peer or friend, a significant amount of trust is already established, so you’ll have to do less work before you’re ready to engage in a transaction. Doubts are diminished, so everything can be fast tracked.


There are three ways you can encourage more referrals from customers. First, it’s useful to give people an interesting and inspiring story to tell. A lot of people find simple, straightforward referring awkward and uncomfortable, but everybody tells interesting stories they’ve discovered to others all the time.

Second, you must provide good tools to your referral partners so it’s easy for them to direct others to you, with a simple way for those referred to learn more about you. This works best when there’s some immediate benefit to the referred person. The easiest way to create this is with information. In my case, I usually lead with my book website, a three-video informative course on how to use marketing automation for internal marketing, a live webinar, or an interview.

Third, it’s important to follow-up courteously, diligently, and effectively with every new person sent your way. You never want anyone reporting to your referral source that they were ignored or neglected.

In my business, we use a workflow specifically designed to ask for referrals from select clients who are likely to give us a referral. Our system sends out a single question survey asking them “On a scale of 1 to 10, how likely are you to introduce us to a friend or colleague?” If they give you 1 to 4, you have an unhappy customer, and you should call them to resolve the issue. If they give you 5 to 7, you probably won’t get a referral from them anytime soon. If they give you and 8, 9, or 10, you should add them to your VIP Club, however you design it, and send them tools they can use to give you referrals.

One effective way to woo those referrals is to send them a “shock and awe” package as a referral generating tool. The concept is this: When a customer agrees to give you a referral, you give them a couple of shock and awe packages along with a book you wrote or a video book if you don’t have a book. You hand the shock and awe package to your client and ask them to give it to the person they’re referring and say, “Here’s the package of information from Mr. [FILL IN THE CUSTOMER’S LAST NAME]. You’ll find it interesting. He’s the one we trust with our [FILL IN THE NAME OF WHAT YOU SELL].”

When you give your customer a tool like a shock and awe package and help them practice what to say when they recommend you to someone, they’re far more likely to give you a referral. Remember to eloquently express gratitude. Be sincere in your expression and give a meaningful gift. (No, a $100 discount added to their account or deducted from money they owe you doesn’t relieve you from your duty to express gratitude).

We also send a version of a shock and awe package we call the VIP Patient/ Client Package to clients who give you a referral. After referring someone they know, you would upgrade them to a VIP level and have them join an exclusive club with some special benefits. As part of the club, you could give them some free products or services, send them birthday gifts or spa treatments, or whatever you consider tasteful.

We also encourage you to send a VIP client a WOW box. A WOW box is filled with chocolates or chocolate chip brownies, a couple of Starbucks gift cards (so they can treat someone to a cup of coffee and talk about you), a deck of business cards with a personalized QR code that takes someone to a personalized tell-a-friend landing page, eight postcards they can hand out (eight because you can print eight postcards on an 11 x 17 sheet and personalize them on demand), and a few of copies of your flagship free report or consumer guide to choosing the right business for their needs.


In 2015, we developed four types of WOW boxes for health practitioners:

New client/patient welcome WOW box
VIP client/patient welcome to VIP club WOW box
End of treatment celebration WOW box
Parent appreciation Wow box
I got the idea of Parent Appreciation WOW box from Mac Bledsoe’s book Parenting with Dignity. Mac’s son Drew Bledsoe played for New England Patriots. Besides being an awesome football player, Drew is also an amazing father, a wonderful husband, a generous philanthropist, and a successful businessman. I think Mac did a good job raising his son. In his book, Mac talks about teaching kids how to adequately express gratitude. I encourage my dentist clients to buy a box of Mac’s book and send the book along with a handwritten card by the child to the parents. Some kids write an entire essay. Some kids just write a few words to thank their mom or dad for all they do or thank them for spending money on their braces. The experience creates a special bond between the dentist and the family. The grateful child and the joyous parent are now ready to share their experience with their friends. I always encourage the dentist to send TWO copies of the book in the Parent Appreciation WOW Box. The second copy of the book will always find its way to a family friend who will become a prospective patient.

How far will you go to wow your clients? What will you do for your clients so they would want to tell your story to their friends?

NOVEMBER 19, 2015
Over the past two and a half years, we've interviewed 65 millionaire entrepreneurs about building successful businesses. Our conversations with these entrepreneurs revealed many surprising lessons about succeeding in business -- lessons that broke the pattern of what we’re used to hearing about entrepreneurship.

Related: The 10 Communication Skills Every Entrepreneur Must Master

Here are seven of our favorite lessons:

1. Never believe you know better than your staff.
When we think of high-powered leaders, people like Donald Trump come to mind -- no-nonsense, all-knowing ominous figures. But that isn’t always reality. We had the privilege of interviewing Richard Branson and weren’t surprised that he approaches leadership differently:


“With all my employees, I listen to them, trust in them, believe in them, respect them and let them have a go! I never believe I know better than they do.”

This is just one thing that has elevated Branson to the level he’s at today.

2. Don’t go big or go home.
We’re constantly told in entrepreneurship you have to go big or go home, to jump in with two feet and burn the boats behind you. But one interesting lesson we learned from our interview with master marketer and best selling author Seth Godin is that go big or go home isn’t the best way to go as a new entrepreneur.

Instead, how about this -- start small and start now.

3. The customer isn’t always right.
Many entrepreneurs subscribe to the customer is always right philosophy. However, we learned from New York Times bestselling author Tim Ferriss that the customer is not always right --nor do they get to call the shots.

Ferriss taught us that some customers aren’t worth it, and you don’t need to take abuse to provide good service. Firing difficult customers gives you more time to nurture your relationships with the good ones, ultimately making more money in the long run.

4. You don’t have to be smart to succeed.
Wantrepreneurs often think they must be the smartest in their industries to succeed in entrepreneurship. Intelligence (or perceived lack thereof) holds many back from ever realizing their entrepreneurial dreams.

While it’s important to make sure your company is among the best, we learned from the founder of Kissmetrics, Neil Patel, that you don't have to be smart to be a successful entrepreneur -- you just have to hire smart people.


Related: 10 Behaviors of Smart People

5. Be selfish in solving problems.
Successful entrepreneurs are in the business of solving other people’s problems, right? Maybe, but Danae Ringelmann, founder of Indiegogo, taught us that to ensure success in entrepreneurship, focus on solving your own problems.

In her 20s, Ringelmann came up against problem and quickly realized it wasn’t just impacting her -- it was impacting everyone across the world. The problem? Inefficient access to capital.

“Ideas were going unborn every day, not for lack of heart and hustle, but for lack of access to the right gatekeeper, the person who holds the purse strings.”

Be selfish in solving problems. If you’re experiencing a challenge, chances are others are experiencing it too.

6. Invest in your own backyard.
To be entrepreneurial, you have to be able to pivot quickly to chase new opportunities, right? According to our interview with Barbara Corcoran, chasing unfamiliar new markets is a fast track to failure.

“I’ve watched so many people much smarter than me lose as much money as I’ve made. You know what they forgot? They forgot to invest in their own backyard -- what they knew. They heard [another] market was phenomenal and off they went, and lost their shirts”.

Don’t forget to invest in your own backyard, in what you know.


7. The money is not the bottom line.
Many people start businesses for the money. But hopefully that’s not the only reason. Marie Forleo, founder of Marie TV and B-School, shared the secret of entrepreneurial success:

“The money is not the bottom line. The people who I see that are the most successful -- there’s something deeper that drives them. There’s this strong burning desire to make a difference.”

And those entrepreneurs who are purely chasing the money? They’re the ones who crash and burn.

These are just a few of the hundreds of lessons we’ve learned interviewing the greatest minds in business today.

There is so much more to be learned from these entrepreneurial greats, but the powerful lessons above will give any new or even established entrepreneur an edge in their business.

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