The Power of Referral Marketing

Successful business owners generate most of their new business through referrals from satisfied customers or from trusted business colleagues.

However, still many businesses today do not grasp the power of referrals- they do not make the giving and receiving of systematic referrals a cornerstone of their marketing efforts.

How many times have you been at a BBQ or other function and heard people give a referral to someone they know and trust?

It is recommended that you establish a marketing plan that incorporates a referral system.

Let me tell you why:

  •  People feel more comfortable when someone they know has recommended someone who they know and trust. This is especially true if the product or service is more expensive.
  •  Referrals are credible from the start. We would not recommend a product or service unless we have experienced them or know of someone who has. (there may be times when we may give a name of someone who we have not experienced but would clarify by saying something like, ‘we are not sure of their level of service’ – that is not giving a referral, just giving a name)
  •  Referred clients are usually less price sensitive and tend to buy more. They are usually qualified as being already in the market for your type of product/service and have already been told of the quality of your service.
  •  By establishing a system of: – how you source these referrals, the follow through to the sale and beyond, your client base should multiply. This will allow you to choose who YOU want to work with rather than having to take any client that comes your way. You will be able to focus on high quality clients that can be highly profitable for your business.

Obviously by being a member of BforB and attending every meeting to establish trusted business relationships is one step in your referral marketing strategy in your marketing plan.

If you need help with your marketing plan then there are numerous people within BforB who are experienced in assisting.

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