Three Simple Referral Marketing Strategies
Three Simple Referral Marketing Strategies
The very best way to get a new customer is to simply ask a happy customer for a referral. And do you know the best thing about referred customers? You will almost always be able to charge them full price because they are presold on your quality and work.
This article discusses three very simple but power referral marketing strategies. Pick the one that most appeals to you and work to implement it in your business today.
Referral Strategy #1: It takes One to Know One<
Don't dismiss this referral marketing strategy as too simplistic. I promise you it is very powerful. Here's how it works.
As soon as you have completed a successful transaction with a good customer, simply ask, "Do you happen to know anyone like yourself that would benefit from my products & services?" The key to this referral idea is twofold.
1. You have completed a transaction with the customer that ended in high satisfaction.
2. You have asked for the referral at the point of maximum impact.
You'll be amazed by how much new business you can bring in by just asking a happy client for a referral. Most satisfied customers will be happy to provide a name or two upon request. Don't be shy about this one. It may be simple, but it works!
Referral Strategy #2: Show Me the Money
This referral idea uses the idea of complementary businesses. A complementary business is one that serves the same target customers as your business but is not a direct competitor. For example, let’s say you owned a roofing repair company. Complementary businesses would include other types of home repair business such as weatherproofing, tuckpointing, remodeling, etc.
I recommend only approaching businesses you have some type of established relationship for reasons that will be obvious in a moment.
Work with one business at a time and ask them to mail out a letter to all their clients introducing your business and recommending your products and services. In return, you promise to pay the company a percentage of all sales that you obtain through this mailing.
Don't be stingy here - make it worth their while. While you may need to offer 25% or more of first-time sales produced, the value comes from retaining these customers for future business.
This referral idea really does require you have a trusting relationship with the complementary company as they will be relying on you to track the business you book from the mailing.
Referral Strategy #3: You Scratch My Back & I'll Scratch Yours
This referral marketing strategy is simple but powerful. Your client sends you people that make a purchase and you give them coupons worth 20% off a specific product or service.
Let's say you are a consultant and have an established relationship with a client for whom you are working on a project. The project is a day-long training event and you are charging $2,000. You tell your client that you will knock 20% off the price for every client they send you that makes a purchase.
What makes this system so compelling is that there is no limit to what they can save. If they send you 5 prospects that end up doing business with you, then their $2,000 training session is free (5 x 20% = 100%).
Would you trade a free service for five new paying clients? I would! This referral provides a strong incentive for the client to send you good referrals.
Pick one of the above three referral strategies and work to integrate it into your business. You'll be surprised by the results!
Three Simple Referral Marketing Strategies - To learn more about this author, visit Corte Swearingen's Website.
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I personally know of several very successful small businesses that don’t spend a dime on advertising? Why? Because they have implemented a referral marketing program that automatically brings in more clients than they need.
The very best way to get a new customer is to simply ask a happy customer for a referral. And do you know the best thing about referred customers? You will almost always be able to charge them full price because they are presold on your quality and work.
This article discusses three very simple but power referral marketing strategies. Pick the one that most appeals to you and work to implement it in your business today.
Referral Strategy #1: It takes One to Know One<
Don't dismiss this referral marketing strategy as too simplistic. I promise you it is very powerful. Here's how it works.
As soon as you have completed a successful transaction with a good customer, simply ask, "Do you happen to know anyone like yourself that would benefit from my products & services?" The key to this referral idea is twofold.
1. You have completed a transaction with the customer that ended in high satisfaction.
2. You have asked for the referral at the point of maximum impact.
You'll be amazed by how much new business you can bring in by just asking a happy client for a referral. Most satisfied customers will be happy to provide a name or two upon request. Don't be shy about this one. It may be simple, but it works!
Referral Strategy #2: Show Me the Money
This referral idea uses the idea of complementary businesses. A complementary business is one that serves the same target customers as your business but is not a direct competitor. For example, let’s say you owned a roofing repair company. Complementary businesses would include other types of home repair business such as weatherproofing, tuckpointing, remodeling, etc.
I recommend only approaching businesses you have some type of established relationship for reasons that will be obvious in a moment.
Work with one business at a time and ask them to mail out a letter to all their clients introducing your business and recommending your products and services. In return, you promise to pay the company a percentage of all sales that you obtain through this mailing.
Don't be stingy here - make it worth their while. While you may need to offer 25% or more of first-time sales produced, the value comes from retaining these customers for future business.
This referral idea really does require you have a trusting relationship with the complementary company as they will be relying on you to track the business you book from the mailing.
Referral Strategy #3: You Scratch My Back & I'll Scratch Yours
This referral marketing strategy is simple but powerful. Your client sends you people that make a purchase and you give them coupons worth 20% off a specific product or service.
Let's say you are a consultant and have an established relationship with a client for whom you are working on a project. The project is a day-long training event and you are charging $2,000. You tell your client that you will knock 20% off the price for every client they send you that makes a purchase.
What makes this system so compelling is that there is no limit to what they can save. If they send you 5 prospects that end up doing business with you, then their $2,000 training session is free (5 x 20% = 100%).
Would you trade a free service for five new paying clients? I would! This referral provides a strong incentive for the client to send you good referrals.
Pick one of the above three referral strategies and work to integrate it into your business. You'll be surprised by the results!
Three Simple Referral Marketing Strategies - To learn more about this author, visit Corte Swearingen's Website.
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Joe DagerJoe Dager is President of Business901, a progressive coaching company providing no-nonsense direction in areas such as Lean Six Sigma Marketing and organized referral marketing. What others say: In the past 20 years, Joe and I have collaborated on many difficult issues. Joe’s ability to combine his expertise with “out of the box” thinking is unsurpassed. He has always delivered quickly, cost effectively and with ingenuity. A brilliant mind that is always a pleasure to work with.” - James R. If you want to learn more about Business901, start a conversation with us. We can be found @ Web/Blog: Business901.com Web/Blog: FundingYourNonprofit.com LinkedIn Profile Follow me on Twitter - Visit Joe Dager's Website |
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George LudwigGeorge Ludwig is a recognized authority on sales strategy and peak performance psychology. An international speaker, trainer, and corporate consultant, he helps clients like Johnson & Johnson, Abbott Laboratories, Northwestern Mutual, CIGNA, and numerous others improve sales force effectiveness and performance. Though it's George's strategies and processes that help corporations increase productivity and performance, it's his tremendous energy and dynamism that spark the transformation. Again and again, clients remark on his amazing ability to unleash human capacity and inspire men and women to break out of their comfort zones. The result is a whole new type of salesperson. His customized presentations teach achievers to make stunning advances in their lives. From helping salespeople realize cherished dreams to helping corporations exponentially accelerate revenue streams, George Ludwig leaves audiences and individuals empowered, emboldened, and clamoring for more. George is the best-selling author of Power Selling: Seven Strategies for Cracking the Sales Code and Wise Moves: 60 Quick Tips to Improve Your Position in Life & Business. - Visit George Ludwig's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Dave KurlanDave Kurlan is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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Jeff FosterWebBizIdeas.com is a Minneapolis website design company founded to help people start an internet business by providing them with website, business, and internet resources that help foster the growth of successful online businesses and develop innovative Internet business ideas. We specialize in internet consulting & internet marketing. - Visit Jeff Foster's Website |
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Stephanie RobeyStephanie Robey is President and CoFounder of Pivot Positive, LLC - an Internet marketing business focused on helping people start work at home ventures. Previously, she was employed at The Search Agency with over 20 years experience in graphic design and 10 years experience in online marketing. She was responsible for launching the Conversion Path Optimization (CPO) unit where she and her team have conducted hundreds of optimization tests for online companies across multiple verticals. She is a successful entrepreneur having started and sold 2 companies and remains on the board of directors of the third, PhotoSpin.com Stephanie began her career in the direct marketing realm creating and producing direct mail for many of the major cable television companies and directly attributes her understanding of Internet marketing to those early offline experiences. Stephanie is a graduate of San Diego State University with a BFA in Graphic Arts and also holds an Executive MBA from the Graziadio School of Business and Management at Pepperdine University. Read Steph's Blog Meet Steph and Dave Sign up for our Free 7-Day BootCamp: Self Employed & Rich - Visit Stephanie Robey's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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