Inside Small Business | Small Business & Home Business Marketing
By Referral Only
Monte Resnick
Together, these three words create a powerful MINDSET and PERCEPTION. The mindset belongs to YOU – the business owner (or sales team). The perception belongs to your present and future clients.
A referral to your business from an outside third party carries with it the greatest likelihood that a connection will be made. By referral only, is translated into the perception that you are a credible and TRUSTED AUTHORITY in your field. Of course you say, “this is nothing new”. Well, let’s take a “pre-test” then. What percentage of your 2007 business came by way of direct referrals? How much money did you spend on advertising (in any form) last year? What was your ROI? If I called one hundred people in your local community and asked if they could refer me to a really good _____ (your business), how many would suggest I contact you? Would you be the first business mentioned? Would they provide me with a telling reason why I should call you immediately?
With all the latest technology available to us in 2008, guess what the latest trend in sales and marketing is? Word Of Mouth! This makes sense, since it remains to be among the most studied and proven methods of attracting qualified clients to your business.
While gathering my thoughts for this article, I was interrupted by a frantic phone call from a business colleague. It seems his computer system had crashed and the service professional had relied on in the past was apparently away for the holidays. Without hesitation, I provided him with complete contact information (including a mobile number) for an IT specialist in my network. I put my colleague at further ease by relating a story about this specialist with regard to his commitment to making sure small businesses stay up and running 24/7/365 under his “watch”. Later that same evening, I received elated phone calls from both the business owner and the IT specialist. My colleague was back in business and replete with gratitude for my referral. My IT referral was just as happy to have a new customer – who will no doubt share the story of what happened to him when he was in a real bind during the Christmas holiday with his business friends! Everyone Wins!
Recall from “Sales School 101” that every feature should have a benefit (or three) that relates to helping the prospective customer. So let’s review the top three reasons to implement a strong “By Referral Only” strategy immediately:
1. Eradicate Traditional Prospecting (and cold calling – yuk!): Given the choice, which would you enjoy more - having to go out and cold call / prospect, or picking up your phone (and e-mail) to find warm introductions to likely customers?
2. Increase Business In Less Time: Imagine attaining your annual sales objectives by July! You will surprise yourself with an effective By Referral Only Strategy in place.
3. Decrease (or reallocate) Cost of Traditional Marketing / Advertising: A strong By Referral Only strategy may substantially decrease the cost of traditional marketing / advertising. Many business owners reallocate a portion of their savings into their sales incentive plan – thus rewarding your front line team for developing and sustaining an effective By Referral Only campaign.
Want to develop (or strengthen) your “By Referral Only” strategy for 2008?
My next article will focus on some of the most effective strategies you can implement immediately to build an authentic “By Referral Only” business.
Can’t wait for the next article? E-mail me at: monte@ambitionpartners.com and I’ll provide you with an advanced preview!
To Your Success in 2008!
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Posted on Monday, January 7th, 2008 at 9:51 am and is filed under Advertising, Business, Entrepreneurship, Marketing, Sales. You can follow any responses to this entry through the RSS 2.0 feed.
Referrals are a really important part of relationship marketing, and I find one that many business owners are afraid to ask for from their valued clients. I advise small business computer consultants on different aspects of running their businesses and managing relationships with clients, and I find that many are timid – and even feel like it’s akin to “begging” or irritating their clients – when it comes to asking for referrals. But you are absolutely right that they are incredibly important and can bring in a lot of new business! And the truth is, your best clients will be happy to sing your praises to other people they know, potentially bringing you great clients in your area that are a lot like the ones you currently have that you like so much.