Referral Marketing can be an excellent way to generate more business. This article will discuss tips and tricks to help you get the most from your referral marketing.
Everyone wants to get more business referrals, but few people are willing to put in the necessary work required to get more referrals. Referral marketing…marketing that is designed to generate referrals from referral partners and current clients is often time a good use of marketing dollars.
Why is this the case? For two main reasons.
First, your current clients are likely to give you referrals because they know you, like you, and trust you. This is why your referral marketing efforts should go towards them.
Two, your current clients many times know people who are like them and are in similar situations. In other words, the phrase “Birds of a Feather Flock Together” is very true. Most people start having a family at about the same age of their friends. The same goes for buying houses, for retiring, and for many other items.
Since your current clients know these people, it just makes sense to spend money on referral marketing.
Now that we have covered why it makes sense to spend money on referral marketing lets cover some specific tips and tricks to help make your referral marketing more effective.
Tip #1. Always make your referral marketing interesting and fun. A good way to do this is to use direct mail. Direct mail can be a very good referral strategy because you can target the exact people you want to get referrals from. Mail that is “lumpy” or that is 3-dimensional makes a lot of sense since it stands out from the crowd.
Tip #2: Decide on a budget. If you know that if you get a new client that will yield you $1,000 in profits how willing are you to spend $50 or even $100 to get that new client? The same goes for your referral marketing. This leads to another important fact.
Do you reward people for referrals? Or do you forget to thank people. Personally, I believe that when someone gives you a referral you need to thank them in a very exciting and memorable way. This depends on how much a new client is worth to you. Don’t be cheap!
Once you have decided your budget and how important a new client via referral is worth to you you can know how much to afford to spend to get a referral.
The last concept is staying the course. You need to stay relevant in the minds of people, otherwise they will forget to refer you. Do you remember your real estate agent? Your mortgage broker? This is especially true for transactions that do not take on a regular basis. I know that I have never heard from my mortgage broker again, or my real estate agent ever again. I can’t even remember their names. And if I can’t remember their names, I certainly cannot refer them!
This is where a good referral marketing campaign comes into play. The fact is that I have had several people ask me for recommendations, but since these people did not stay in front of me with a referral marketing campaign, they lost out on a lost of money.
These tips and tricks will help you generate referrals in your business. Remember, for referral marketing to be effective you must stay the course, know your budget, and stand out. To implement a referral marketing campaign go here to get started!