| New studies demonstrate the benefits of referral | | | | see if you are communicating a mixed or confusing |
| marketing. In his book The New Art and Science of | | | | message that might undermine your credibility and |
| Referral Marketing, Scott Degraffenreid explains how | | | | professionalism. Perhaps use a focus group to give |
| the science of social network analysis has been used | | | | you objective feedback. |
| to help companies effectively utilize referral marketing. | | | | Steps to Create Your Referral Marketing Plan |
| Recent advances in mathematics made possible by | | | | A Key Component |
| new computer technology now enable experts to | | | | Your services or products must be top notch. In |
| precisely quantify the impact of referrals. In his book, | | | | today's competitive marketplace, simply meeting your |
| Degraffenreid describes a research study on | | | | clients' expectations isn't enough. Aim to exceed |
| physicians' referral patterns for a pharmaceutical | | | | expectations -- underpromise and overdeliver. |
| company. In this example, millions of dollars had been | | | | Remember: the person referring you is putting his or |
| spent marketing certain drugs, with very slow market | | | | her reputation is on the line. They must have |
| penetration due to few peer endorsements, while | | | | confidence in you! |
| others with minimal marketing exposure sold well | | | | Who will refer you? |
| because of high referral incidence, making them far | | | | • Happy, satisfied clients who already know, |
| more profitable. By testing behaviors in several | | | | understand and appreciate what you offer. |
| different ways, results showed that the primary | | | | • Businesses that sell to the same target |
| reason we make referrals is to enhance our standing | | | | market. |
| with the people we refer. We want to look good! | | | | • Friends and family are often eager to help. If |
| He explains that because we're bombarded daily with | | | | someone asks what he or she can do to help your |
| so many marketing messages, our brains have | | | | business, don't waste the opportunity. Be ready to tell |
| developed methods to filter these out. This, combined | | | | them how. |
| with rising costs, makes 'traditional media' a less | | | | Ask for referrals! If you don't ask, people may assume |
| effective way to communicate your message. People | | | | that you have all the clients you can handle. |
| are the new media! Referral marketing is a viable, | | | | Make a list of those you can ask for referrals, and |
| cost-effective alternative. | | | | keep in touch with them regularly to maintain |
| The Benefits of Referral Marketing | | | | top-of-the-mind awareness. |
| • Consumers today have developed cynicism | | | | Make it Easy to Refer Your Services or Products |
| and distrust of advertising messages. When | | | | Educate and equip potential referrers with the tools |
| considering a purchase, we're now much more likely to | | | | they need. Keep it clear and simple. If telling someone |
| ask a trusted friend or acquaintance for a | | | | about your services seems complicated, and there is a |
| recommendation. | | | | possibility they might appear foolish, they probably |
| • We listen to those we know and trust. | | | | won't refer you. |
| When a friend of theirs has referred a potential client | | | | Be crystal clear about: |
| to you, a level of credibility and trust has already been | | | | • Who your "ideal client" is |
| established. They are more open to hear what you | | | | • The benefits and value of your product or |
| have to say. | | | | service |
| • Most likely, the person referring someone | | | | • How to contact you |
| has already described your service or product and | | | | Follow up on referrals promptly, expressing your |
| you need to spend less time and energy educating | | | | sincere thanks. If appropriate, include a gift as a token |
| them on the value you offer. These leads generally | | | | of appreciation. Always keep your referrer in the loop. |
| turn into sales much more quickly. | | | | Let him or her know what's happening, even if it's |
| • Referral marketing is more profitable. To | | | | nothing and you're still playing phone tag. |
| generate a steady stream of referrals will take effort | | | | Create a form to track referral leads and measure the |
| but may cost little or nothing at all. | | | | results and corresponding costs. |
| When a company's printed materials, website and | | | | It takes time and thought to actively seek out and |
| signage send a consistent message with similar text, | | | | educate potential referrers, to help them look good by |
| graphics and colors, it conveys a solid, professional | | | | referring you, but the results can prove well worth the |
| image. It provides the level of comfort a potential client | | | | effort. Put your plan in place now, follow it faithfully and |
| may need to do business with that company. Check to | | | | take advantage of this profitable marketing method! |