Referral Marketing is a method of marketing that relies on gaining new clients based on referrals, usually through word of mouth. Approximately 80% of companies obtain 70% of their business through word of mouth from satisfied clients and contacts they have made. Word of mouth is generally spontaneous and is achieved by businesses without any form of structured strategy. Referral marketing takes word of mouth from the spontaneous situation to a proactive and highly productive solution, where maximum referrals are generated due to professional customer-focused strategies
Real Estate Agents are constantly sharing with me every day that the way they generate the most new business is through referral marketing. Yet they don’t seem to grasp the power of this statement. Few if any businesses harness the true power of referrals by making the receiving of systematic referrals a cornerstone of their marketing efforts.
What do you need to accomplish the referral marketing technique:
- Remember Referrals are credible right from the start. When a trusted friend tells you about a business you transfer that trust to this company…even if you’ve never heard of them before.
- People who are referred to a business tend to spend more money. Research has proven this beyond the shadow of a doubt and it is likely because people tend to refer other who are highly qualified and not just tire kickers or price shoppers.
- Referrals are very cost-effective. In some cases free or a fraction of what you might pay in advertising costs.
In some industries, like consulting and professional services most companies are chosen solely on the recommendation of a friend.
Are you getting your referrals…if not consider these little ideas.
- Expect to get referrals but don’t assume you will. Talk about them early and often and build them into your sales and marketing efforts…don’t wait for people to offer them.
- Create a system to stay in front of your past clients. These are your #1 referral base
- Follow-up by phone or mail asking for referrals
- Give every client 3 business cards. Look in your drawer you’ve got hundreds. Give them out to clients and they may just pass them along.
Referrals are essential to your business so don’t overlook them chasing the newest trend in marketing in your industry.
If you are ready to start your referral marketing business or not happy with your past efforts, allow Kim Hughes to show you what will work. This referral marketing system works and 80% of Kim’s clients are using this system and it is creating referrals for them, which means new business.
Contact Kim immediately for your free consultation to see if this program is right for you.