Many business owners are overlooking the power of referrals and mostly focusing on online marketing. Although internet ads have its advantages, ads don’t compare to referrals.
Some of you may disagree. Yet, when we explore the definition of a referral, I’m sure you’ll reconsider.
What is a referral?
As Stacey Brown states in her blog titled All “Referrals” Aren’t Referrals and Aren’t Created Equal, the definition of a referral has become extremely diluted today.
Most people generalize different types of leads and group together terms.
Understanding the difference between an introduction and cold lead will help you identify the right actions to generate REAL referrals.
Savvy BOSS LADIES teach their clients how to refer qualified new clients.
Types of referrals
When someone mentions your services/products to a friend, it generates word of mouth buzz. The more your name is seen or heard in their world, the more likely they seek you out. Although word of mouth buzz isn’t a referral, free marketing adds credibility and that’s a good thing.
If someone gives you the name of a company or contact information but doesn’t connect you, that’s a cold lead. Although you can use the referral source name, you work just as hard to close the sale as you would any other prospect. Very little trust is transferred from your contact to the referral. In fact, extra work may be needed to build rapport and overcome suspicion.
An introduction provides a little more leverage. When someone introduces you, a transfer of trust is made. The referral source is vouching for you which helps build rapport. This connection is a warm lead. Some effort is still required, especially if the referral source doesn’t explain why she’s connecting you.
When the referral source positions you as being the premier person to solve a problem and the referral contacts YOU, it’s a true referral. They’re already sold on your solution, and the trust is established by the referral source. The only effort required is to listen and not screw up the sale!
Clients who present you on a diamond encrusted platter can grow and sustain your business better than any online marketing funnel can. Rock star clients who send REAL referrals your way are game changers because you’re no longer worried about the next lead. Being sought after is the ultimate position all entrepreneurs dream of so how do you get there?
Marketing your business through referrals is an easy way to grow your business if you do it right. Consistent referrals can be achieved in a systematic way by using these three tips.
1. Inform new clients on how you work. If they know your primary business comes from referrals and how it benefits them, they’ll be more likely to send referrals your way.
2. Teach clients on how to identify your ideal client. If they know who your ideal client is, they will refer qualified people.
3. Show your appreciation to clients when they do refer someone. Once you convert a referral into a client, send your referral source an appreciation gift thanking them for the referral. A thank you card is a nice gesture, but spending a few dollars speaks volumes.
If you need more ideas on what to say, or someone to walk you through the process, lets schedule blueprint session!