Referral marketing is the most profitable kind of marketing there is.
For as long as there has been small business, owners and service providers have been talking about referral marketing. Most small businesses point to referrals as their primary source of business. It just doesn’t happen consistently enough to generate all the clients a small business can handle.
So where does most of your business come from? If you’re like most business owners or independent professionals, you’d probably tell me that a majority of your business comes through referrals. But, if I asked what you do to guarantee a constant flow of referrals, would you have an answer?
Almost every business owner and independent professional I’ve checked with doesn’t have an answer. You’re simply focused on doing great work and keeping your clients happy. Because happy clients will tell others about you right? Nice thought, but it rarely leads to a continuous flow of new referral business.
What you need is a referral marketing system. The good news is that referral marketing works for virtually any business that’s willing to implement a systematic approach. A system gives you a process for actively participating in producing referrals and turning them into clients.
Here are five keys to begin creating your own continuous flow of referrals.
Key #1 - Embrace a Referral Mindset.
Creating a referral marketing system is more than just tools and tactics. It really begins with your way of thinking. It’s a mindset that starts with committing to build your business through relationships.
Most small business owners are hesitant to even ask for referrals. They feel uncomfortable and don’t want to impose on other people. It’s a fear of being rejected or coming off as if you’re begging for leads.
Embracing a referral mindset means you truly believe that what you offer adds real value and makes a significant difference for your clients. You understand that potential clients prefer to meet you through a referral from a trusted source. You recognize that people actually want to help you succeed whenever they can.
When you adopt a referral mindset, you understand what a shame it would be if those in your network weren’t introducing you to others. You’re not asking anyone to sell you, just make connections to others who could benefit from the value you offer.
Key #2 - Clarify Your Referral Targets and Ideal Referral Candidates.
Most business development folks think they know how referrals work. But very few small businesses do any of the planning and preparation necessary to make even a systematic approach produce consistent results.
This really starts with being crystal clear on who makes for the best referral partners. Who makes the most sense to introduce you to the right prospects and could be properly motivated to refer you?
Likewise, you need to define what a great referral would look like for your business. If someone asks you what a perfect referral looks like, would you be able to answer clearly and articulately? Or, would you say, “We can work with just about anyone really.”
Being clear on who makes for a great prospective client helps your referral sources help you. They’ll be better prepared to think of high-quality prospects to connect you to.
Key #3 - Boost Your Refer-ability.
Referrals don’t happen consistently if your business is not referable. Just being in business and offering great services is rarely enough.
There are lots of reasons why others aren’t referring to you consistently.
- They don’t know what makes for a good referral.
- They don’t know what’s in it for them to refer to you.
- They don’t know what’s in it for the referral prospect they might send to you.
- They don’t know how your referral process works.
- They don’t know what steps you plan to take with any referral they make.
You significantly enhance your refer-ability when you educate your referral sources and referral prospects. Remember, people want to know what will happen and what’s in it for them.
Provide resources and materials that inform and educate your sources on the value you have to offer. Be willing to share information to demonstrate your expertise and credibility as solution provider.
Key #4 - Work for Referrals.
Too many small business owners are sitting around passively waiting for referrals to just happen. You actually have to prospect for referrals. Begin planting seeds and looking for opportunities to ask for referrals in the right way.
Be willing to give before you get. When you’re willing to give without immediate expectations of return, you’ll almost automatically begin to win more often.
There are many ways to give and enhance someone else’s business besides simply passing your own referrals.
- Help them make contacts.
- Be willing to make introductions.
- Guide them to useful resources.
- Provide them with some of your valuable information.
Find out what’s important to your referral sources. What are they looking for and what could help them? The more you’re willing to give, the more you’ll end up getting in return.
Key #5 - Network Strategically.
Small business thrives on people connecting to resources and people through other people. Strategic networking is focused on forming truly reciprocal relationships in when each helps the other get what they need to build the business.
It goes beyond simply thinking of your current and past clients as your best referral sources. Think of all the ways that you could add value or create value for your network of contacts. Build a repository of value that will position you to give and share freely with others.
Again, the more you give, the more you’ll get.
Stop waiting for referrals to just happen. Go to work on creating your referral marketing system. And before you know it, you just might have all the business you can handle.
About the Author:
Kevin Dervin is focused on helping small businesses that are ready to grow, but struggle with how to consistently attract more clients. Visit http://www.proven-small-business-marketing-solutions.com for more great marketing information you can put to use in growing your business today.
Follow his Small Business Marketing Tips and Ideas weblog at http://www.proven-small-business-marketing-solutions.com/blog.html
Find Kevin’s Kansas City based KPD Marketing practice at http://www.ABCDgrowth.com and subscribe to his free ezine called ABCD Grow.
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Tags: marketing ideas, marketing tools, referral marketing, small business marketing
