Build Your Business By Referral
You too can build your business by referral if you implement "Best Practices."
Read about what the "best" referal marketers are doing to build their referral business.
The information on this lens is very specific and actionable. (Just do it already!)
Did you know that 50% of buying decisions are made with existing relationships?
35% of buyers ASK for a referral before making a purchase.
...that's 85% of the buying decisions made with a referred source or with someone the buyer already knows, likes and trusts!
15% of your business comes from your advertising.
Where are you spending your money?
If you are spending your money on traditional advertising, you might be wasting your investment by not putting your money developing existing relationships and referrals.
What can I learn on this Lens?
Show me the Money!
Referral Marketing Best Practices
Intentionally Build Your Business by Referral
(This great list provided by David Frey of Marketing Best Practices.
Create a Written Referral Marketing Plan
7 Things to Consider When Writing up Your Referral Marketing Plan
- Set A Target If you don't know what your goal is you won't know if you reach it. Results as well as activity must be measured to improve performance. Set a clear goal with a time line. Example, 10% increase in referral business over the next 10 weeks.
- Script your Activities Yes, write out exactly what strategy you will do, when you will do it and what you will say. Will you give your clients time to experience your service or product before asking for a referral? Or will you ask for the referral every time you close?What other natural opportunities present themselves such as when your client is already delighted with your business. What will you say when you ask for the referral?
- "A" List Not all customers are referral candidates. Find the top 20% that are ecstatic about your business and ask them for referrals.Consider your customer's network - are their contacts the type of client you want?
- Plan to Give Before You Receive Give your clients extra service and follow-up support before asking for referrals. When you give willingly to your customers, they will return the favor.
- Identify Your Ideal Customer Inform your referring clients of the type of customers you can help. Provide a clear picture of the customer demographics will help your referral marketing.
- Rewards Program Provide special rewards to your referring customers on a regular basis. If a customer provides you with 5 sales, offer them something special, e.g. discounts.
- Plan to Say Thank-You Businesses need to establish trust to build referrals. Create a basic thank you letter that can be personalized and sent to each referral you receive. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door.
When your referral plan is well thought out and executed on a regular basis you will increase your referral business and build sales revenue. Start today and watch your referrals grow.
Maintain a database relationship management system
Try these tools
It involves using technology to
- organize,
- automate,
- and synchronize business processes
- principally sales activities,
- marketing,
- customer service,
- and technical support.
The overall goals are to find, attract, and win new clients, nurture and retain those the company already has, entice former clients back into the fold, and reduce the costs of marketing and client service.
Business Thank You Cards
Business Thank You Notes - The Mark of a True Professional
A good practice is to find a way to automate as much of the process as possible while still keeping the message personal.
For this to remain effective you need to be able to personalize the messge, the message must be in your own handwriting and with your own signature.
Let me give you a referral to a tool that I use. I have sent over 500 cards in the last year. Send a real personalized greeting card for free.
Ping your Network Every 20 Days
Not every contact needs to be a sales pitch
- Special Offers
- Invitations
- Keeping in Touch
Some things you should not have to pay for starting out. Email Marketing is one of them. Try iContact for FREE!
Special offers like coupons and discounts are classic direct marketing techniques that translate extremely well to email. In order for an offer to be effective, it must provide something of real value to the recipient.
Invitations to events like seminars, conferences, and other special events are another type of highly effective email marketing. Seminars work particularly well for service industries like financial services, insurance, etc. These types of offers can be very effective when sent using email. Repetition is extremely important; sending two invitations spaced apart before the event will increase the number of attendees.
Staying in touch with customers and prospects by providing useful information like newsletters or postcards is the third major email marketing technique covered here. As opposed to offers or invitations, where you are trying to get an immediate response from the recipient, the purpose of sending a newsletter is simply making contact. Keeping the information short, to the point, and most importantly useful is the main objective.
Endless Referrals
Bob Burg
In this completely updated edition of Endless Referrals, he shows you how to:
Get More Referrals Now
by Bill Cates
More Business Building Information
These are a few of my favorite Lenses
“Expand your network of people you know every day”
What is a Strategy that You Use to Get Referrals
How do you reward your customers for referral?
What works for you in your business?
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bushaex
Mar 17, 2012 @ 10:38 am | delete
- I believe that paying referral fees has a place in many business referral practices. Certainly my own business also receives referral fees from some companies we work with. But my company also has a structured referral fee program in which we compensate referral sources for our small business finance consulting services. Thanks so much for addressing this topic.
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elizabethknows
Feb 18, 2012 @ 1:01 pm | delete
- I have always told my friends and family what products I enjoy. I just need to take that thought, and earn from it. Nice lens. Thank you for sharing your view on this much overlooked way to earn some money!
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kajohu Oct 28, 2010 @ 6:58 am | delete
- I have a small business (yoga studio) and I've found that most new people start classes with me either because they found me on the internet and like what they read (or I'm close to where they live or work), or because of a referral from one of my current students. I've gotten lax on promoting the referral part, and....my business is down a bit. The economy doesn't help, but I figure I can more actively promote my studio than I have been. You have a lot of great information and resources here that I plan to look at.
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TallAngel11
Aug 27, 2010 @ 10:24 am | delete
- Suggestions on creating a referral program for a dentist where we are prohibited from buying gifts to thank our clients?
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Melody Campbell
Aug 27, 2010 @ 12:02 pm | delete
- I do have some suggestions for you and would love to talk or email with you directly. Feel free to contact me at melodyc@thesmallbusinessguru.com or 406-278-6140
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ipmarketingllc
May 6, 2008 @ 10:48 pm | delete
- A great lens for traditional business! I strayed away from traditional business and made a choice for the better!
David Hackbarth
Creating Success In Others
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CliveAnderson
Apr 21, 2008 @ 3:05 pm | delete
- Great Lens, I could have certainly used your lenses and knowledge some time ago. But I'm not a closed book and know that we should always be learning. Thank You.
Kind Regards
Clive Anderson
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ShortSaleRealtor
Mar 19, 2008 @ 5:55 pm | delete
- great lens 5 stars 4 u
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Christopher_Scott
Mar 17, 2008 @ 10:41 pm | delete
- Great lens on how to get business by referral. Have you ever heard of Business Networking International?
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riff999
Mar 16, 2008 @ 5:39 pm | delete
- A great resource. 5*
~Jane
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SmBizGuru
Fun lovin', young at heart, mother of three amazing teen-agers, just having fun. more »
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