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7 Tips on Referral Marketing

Tuesday, March 16th, 2010

We know that referrals are important because a client who is referred to you is likely to be more qualified. Therefore, it’s more efficient; they already know what you do and what it cost so price is probably not going to be a problem. I’ve put together some of my notes to help you refine your referral marketing.

  1. Make it easy for people to refer you by being very clear about what you do. This makes it easy for them to educate others.
  2. Have a referral system. You need to have a system so you can track results, know what’s working, the cost and the value.
  3. What holds you back? People hold themselves back because they don’t know how to ask, have a fear of rejection or don’t want to appear desperate or unsuccessful. Which is a shame because not asking will direct affect your success. The answer: understand the value you are providing, don’t take it personally and focus on others not yourself.
  4. How do you Become more referable? Through marketing i.e an experience worth talking about. Provide great customer service. Have a system. Referrals take trust and trust takes time. Generate direct referrals through direct relationships. Teach the language of referrals so your clients know what to listen for. I can’t, I want, I need, I don’t know. If someone says, “I know I need to do more marketing but I don’t know where to start or I hate doing it.” that’s a great referral for me. Create referral partners.
  5. How to create a referral strategy, tactical plan. Be Visible in the community let people know who you are and what you do. Build credibility, people need to trust that you are good at what you do. Profitability be willing to pass referrals. Focus on the other person and how you can add value to them. Follow up and be authentic with no expectation of reciprocity.
  6. Rewarding or Incentives for Referrals. The best reward is access to company. Financial rewards turn the relationship into a transaction. Send a thank you and or make a public thank you. Make them proud that they referred you.
  7. Strategic referral alliances. Create alliances with similar professions. Others who provide services to similar clients. Find alliances and create a power team. Meet and get to know what each business does, who the clients are and where there are overlapping clients. This allows you to help clients more effectively.

So get out there and ask for referrals.

These are some of the tips I picked up when I recently experienced a webinar on referral marketing presented by John Jantsch, Creator of Duct Tape Marketing. It included panelists Bob Burg, Author, “Endless Referrals”, Ivan Misner, Founder & Chairman of BNI and Ben McConnell, Principal, Ant’s Eye View.

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