Today, I’m going to explain what a referral marketing system looks like so you get an idea of the power of this notion.
A fully functioning referral marketing system includes each of the following components.
1) A clear definition of WHO makes a good referral
2) A clear definition of WHEN you are going to ask for referrals
3) A clear definition of HOW your referral sources should recommend you
4) A clear definition of WHAT you are going to do with that referral
5) A clear definition of WHY your referral source will recommend you
6) A clear definition of a PROCESS to turn each referral into a client
Seems like a lot? Not really when you have the short cut guide called Referral Flood.
Next installment of this course includes my personal favorite referral marketing system!
Donate a percentage of all business acquired by way of referral to a non-profit agency. By offering to help a worthy cause, you can increase referrals while improving your community.
Now, don’t downplay this strategy because at first it seems too simple. What I’m presenting in this lesson is probably a bit more advanced than it appears at first glance, so stick with this one.
There are many variations on this referral strategy. You can make donations to a designated charity in your referral source’s name. You can allow your referral sources to designate a charity of their choice. If you have a product or service the non-profit agency uses or buys, you can donate that.
Do you want to know a really powerful way to land a big fish of a client? Pick out one particularly influential prospect, one big fish you really want to do business with. Find out if he or she has a favorite cause or charity.
My experience tells me they usually do. Next step is to present some form of referral proposal that involves that charity. Simply go to them and suggest that if they would endorse or promote your service a portion of the proceeds would go to their charity - in their name.
One of the hidden powers behind this strategy is that the non-profit agencies can become strong referral partners. If they benefit from referring clients, then they may be highly motivated to provide referrals. In many cases, non-profit agencies have loyal donors, board members, community activists and volunteers who would be happy to do business with a firm that was providing funding for the non-profit agency through a referral marketing program.
Referral System #1 - Will Work For ReferralsMany small business owners struggle when it comes to finding sources of referrals, either, due to the fact that they are a new business just starting out, or they are trying to break into a new industry or market.
Here’s a great strategy for just such a situation.
1) Join an important trade, business or industry group that contains a high number of your target market.
2) Seek out one or two influential members of that group (board members are good candidates)
3) Go to those influencers and make this proposal - “I will (provide the product or service that your company does) for full test drive. All I ask in return is that, if you as pleased as we know you will be, you agree to send a letter to the organization endorsing our service.”
I guess it goes without saying that if you can strike this deal, you better deliver the goods for your test case, but if you do…watch out for a flood of business.
The key here is that you get an influential member of a target group to endorse your product or service. Try to get them to send the letter on their own company stationary and even enclose some sort of literature or call to action from you.
If they have a store, office, or sales people in the field, see if they will agree to distribute some of your marketing materials through that way.
There are two pretty good rules to remember when looking for ways to get more referrals.
1) It never hurts to ask
2) Creativity wins every time.
Some people learn best by seeing what other real life small business owners are doing with referral marketing systems. Today I am going to briefly introduce you to 5 real small businesses and the referral marketing systems they use to grow their businesses. (Referral Flood contains pages and pages of these and many people tell me that these are their favorite part of the program)
1) Financial Planner - He created his own referral and lead network by sending a letter to 10 other professionals that he had worked with and felt comfortable referring business to. This letter informed them that he was creating a unique referral network of 100 of the area’s top professional services providers and was inviting them to become a member but that he needed them to recommend 10 others who belonged in this exclusive group.
He then created a resource directory and website that featured all 100 professionals. The entire group promoted the directory and web site and referred business to each other. As a result, other professionals begged to be allowed into the group. The strategy was so powerful that 27 network members did no other form of marketing.
2) An Attorney
Sponsored online teleseminars and invited well-known authors and speakers by allowing them to pitch their books or other products. Targeted clients lined up to hear the prominent speaker and provided their names and email addresses to get on the free call. The teleseminars became so popular that the attorney recorded each call and created an entire library of products that he used for other marketing efforts. By sponsoring the well known authors, the attorney created a very high profile referral network
3) Dentist
Created what he calls compliment cards - Every time a client gives a compliment, like, “that didn’t hurt at all” someone on his staff is ready with a referral card. The staff also emphasizes that the only way they work is by referral.
4) Marketing Consultant
Contacted a bank and an accounting firm that both had small business clients and offered to put on a free marketing seminar for their clients. The bank and the accounting firm invited the guests and provided the space and refreshments. The marketing firm provided the seminar content. The bank and accounting firm liked the idea of doing something for their clients but the twist that really made this work was that the bank and accounting firm saw it as an opportunity to meet each other’s clients and perhaps get some good exposure to prospective clients.
5) Computer Repair
This company simply asked for referrals every time they marketed or communicated with their clients in any manner. They created a big rubber stamp that said “We crave referrals” and stamped that sentiment on every piece of mail that left the place.
Invoices, marketing pieces, newsletters, training manuals, work orders…you name it. By putting that message in front of their prospects constantly they began to receive referrals from many different places.
There are more marketing channels aimed at consumers than ever. Yet more than three-quarters of consumers surveyed worldwide find that consumer opinions are the most effective form of advertising, according to a Nielsen study.
Nielsen surveyed Internet users in 47 markets in Europe, Asia Pacific, the Americas and the Middle East on their attitudes toward many types of ads, including television, branded Web sites and consumer-generated content.
Read the rest of the post on eMarketer
One of the things that I know about any marketing that you implement is that you must come to think about it as a system. In other words, don’t look at the lessons presented here as a marketing event, think of them as an integrated system…and don’t make the mistake of assuming that because I mention a certain kind of business in one example that the advice won’t work for your business.
Finally, I want to challenge you. One of the things I have learned working with hundreds of small business owners over the years is that they are great at signing up for a course, reading a book or attending a seminar…but they are not always the best at taking what they learn and acting upon it. Read, listen, learn… then TAKE ACTION and implement!
