Referral
Marketing
Establish
a Contact System
Now that you
have defined your referral marketing network and have pinpointed your
Contact Sphere, your next step is to establish a methodology to contact
these people to create a reciprocal referral relationship with
them.
This
requires you to take an active posture not a passive one. Most
businesses wait for referrals to come to them without any effort. They
believe that just because they satisfy a customer with their product or
service that the customer will give them a referral.
Remember,
customers and clients act for their reasons, not yours. A typical
client will think that you satisfied him or her that your business must
be flourishing because you do a good job. They assume that you have all
the work you can handle. Don’t let this presumption lead to
your missing out on the referral business!
When you
have a referral system in place this will not happen. To actively
pursue referrals you must become excellent at six main activities.
These do take time and require planning and commitment,
but with the proper tools and knowledge you will be successful very
quickly.
The six main
activities you need to develop are:
- Select your
resource partners
- Recruit your
perspective resource partners
- Educate your
new resource partners
- Give your
resource partners the tools to take action
- Initiate
contact with referral prospects your resource partners give you
- Reward you
resource partners
Let’s look at these in detail.
1.
Select your resource partners
If you have
been systematic in your referral marketing approach, you have a very
good idea of whom your best resource partners will be. Develop the best
methods to contact them based on your current relationship.
Some of your
future partners will require a simple phone call because you have a
solid relationship already established. Others who don’t know
you as well may need a personal letter and several phone calls to let
them know what you are doing. Be persistent in your efforts and be sure
to prioritize these people based on their likely contribution to your
referral marketing system.
2.
Recruit your perspective resource partners
Once you
have made contact with your targeted partners, ask them for a meeting
so you can explain your vision and goals for your system. Let them know
why you selected them, how they fit into your plans, and how they will
benefit from being one of your partners.
It’s important to remember that this is essential a sales
presentation. Keep the focus on the benefits your new partner will
receive and layout what is expected of them. Be sure not to oversell
your referral system as an immediate answer to getting more
business. It takes time and effort on the part of all parties
involved and a learning curve will be experienced.
Be clear on
what your mutual expectations are and agree to put communication and
patience as the top priorities of your newly formed partnership.
3.
Educate Your New Resource Partners
Once you
have recruited your new resource partners the next step is to educate
them on two issues: what actions you wish them to take and the details
of the value your business offers their contacts.
Giving them
direction on the action you want them to take is a critical element of
your entire referral marketing program. If your resource partners
don’t know specifically what you are asking of them,
they’ll avoid taking any action at all for the fear of
failure.
Be crystal
clear that you are asking them to give you referrals and that you will
give them tools they need to accomplish it without much effort. Also,
let them know that you will reciprocate by passing referrals their way
as well.
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The second
issue is just as important as the first. You must supply them with
information they need to confidently refer you to their contacts. If
there is any hint of uncertainty of what you do, they will hesitate and
be less likely to offer you as a solution. Remember, their credibility
is on the line when they offer you a referral.
Again, the
glue that holds the partnership together is communication and patience.
Mistakes and lost opportunities are minimized when both of you have the
tools you need to promote each others business.
4. Give your
resource partners the tools to take action
The most
effective tool you can give your resource partner is knowledge. This
can be accomplished by simply sitting down and letting them understand
the value you bring to others. One simple
tool you can utilize is a straightforward list of your goals,
experience, accomplishments, and network connections. This
doesn’t need to be too detailed, but a specific list of the
key points they need to know. Have them create the same kind of list to
supply you with the knowledge you will need.
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Also supply
them with any collateral material you have developed to market your
business. Brochures, testimonials, advertising, and your website
address can be valuable tools in the hands of your resource partner.
Make sure you give them plenty of the most useful tool – your
business card.
5. Initiate
contact with referral prospects your partners give you
Since you
have asked your resource partner has taken the time and effort to pass
you a referral, it’s critical that you follow up with the
referral in a timely manner. Treat that referral they give you like
gold!
Understand
that every referral has some of your partner’s business or
social capital invested in it. They are risking their good name and
reputation when they pass you the referral. It is up to you to follow
up and contact the prospect.
Ask your
partner what method you should use to make the first contact with the
prospect. Don’t guess or leave it to chance. Some people
prefer a phone call while others like email or a letter. The sales
process has now commenced and you must work within the
prospect’s comfort level to be successful.
The most
effective place to learn about the prospect is from your resource
partner. So ask questions and determine the best way for you to
proceed. Also, be sure to inform your partner of your
progress. This opens more opportunities to them to be able to help in
the form of encouragement or being able to influence the prospect in
your direction.
6.
Reward you resource partners
A little
gratitude goes a long way in referral marketing. Expressing your thanks
to your referral sources strengthens your relationships and enhances
their knowledge and confidence in you. It also will increase
their motivation to spot prospective customers for your business.
Sometimes a
simple “Thank you” will suffice. Other times a gift
or a finder’s fee may be in order. Be sure to approach the
rewards in a systematic manner so you are doing the appropriate action
and not missing anyone.
Consider
offering incentives to further motivate your partners. Recognition and
rewards are powerful forces that can increase the quality and quantity
of the referrals you receive from your resource partners. Make it an
indispensable part of your business and reap the benefits many times
over.
©2005
Ron Abbott
Define
Your Referral Marketing Network
(more)
At
the heart of your referral marketing program is your network of
contacts. These are the people you have met over the years
and formed relationships on many different levels. Your network is made
up of family, friends, business associates, suppliers, members of your
social groups, neighbors, and many others.(Continue
here)
Determine Your
Contact Sphere (more)
When building
your referral marketing system, it is wise, as well as more profitable,
to naturally follow the networks that are built into your business.
Every industry has a unique culture that forms out of necessity and
convenience. This is where the easy referral will be found – your
Contact Sphere. (Continue
here)
Establish
a Contact System
(more)
Now that you
have defined your referral marketing network and have pinpointed your
Contact Sphere, your next step is to establish a methodology to contact
these people to create a reciprocal referral relationship
with them. This requires you to take an active posture not a
passive one. Most businesses wait for referrals to come to them without
any effort. They believe that just because they satisfy a customer with
their product or service that the customer will give them a referral.
(Click
here to learn more)
It’s
common to have
gaps in your referral network that need to be filled. Not even the best
networks know someone to fill every need they might encounter.
That’s why you must continuously look to expand and
diversify your referral network.
(Click here for more)
Coach Ron's Recommended Resources:
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Referral
Marketing: Learn From Experts
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Referral
Flood
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Click here to
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The 5 greatest referral marketing systems ever
created.
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