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How To Systematize Marketing For Referrals

Guest post by: Ron Hequet

Article Overview: Word-of-mouth is great when it takes place. However, today there are way too many stars that have to align for a word-of-mouth recommendation to take place. This article outlines two systematic marketing programs that will eliminate your dependence on word of mouth.

How To Systematize Marketing For Referrals

I began my consulting and coaching practice via the back door - so to speak. At the time I got the phone call, I had a history (to the few who knew) of being an entrepreneur (no one used that word much then). I launched my first company when I was 20 something, and subsequently over the years either bought a company and turned it around, or started another. One early fall day, the phone rang and it was from a business owner in Florida (who had been told of my history), sharing his woes about his business. He said, "I hear you're the guy who can fix it". The suggestion to call me came from an officer in his company that was apparently ‘one of the few'. I was not practicing consulting at the time. Heck, I didn't even know how to consult. I just knew how to fix an unprofitable company and make it very profitable. And not the way an accountant or banker might suggest; cut costs and increase sales - duh, gee, I never thought of that. If they only knew.

That company recommended me to another in Salt Lake City, UT and that company recommended me to one in Myrtle Beach, S.C., and as the saying goes, the rest is history.

Word of mouth advertising? Word of Mouth is great when it takes place. In reality, it is utterly the best form of marketing. However, today there are way too many stars that have to align for a word-of-mouth recommendation to take place.

For example:

A. A past or current customer has had to have had a wonderful experience with you, your product, service, or both (that's a given).

B. Then a past or current customer must be in conversation with another potential customer that has a need for you, your product or service.

C. Your past or current customer must then remember you during that conversation.

D. Then that past or current customer must actually recommend you.

E. Finally, the potential customer must actually contact you with serious consideration.

You see, too many stars have to line up for a word of mouth recommendation to take place. Here are two systematic marketing programs that will eliminate your dependence on word of mouth.

1. Create an ‘E3D' (every 30 day) contact system made up of alternating mail pieces...

a. greeting card (non-electronic)

b. copy of interest appropriate article

c. short phone call (non-selling, letting them know about something new you're doing)

d. note card with photo (hand written, photo of you on travel or interesting fun activity)

e. card requesting recommendation or lead (only once in 12 months)

2. Create a ‘Strategic Alliance' program for business they cause to come your way. This fits a limited number of relationships (it only takes one or two), but for those who understand and accept receiving a check for bringing business to your door, it works, assuming the business transaction is in the multiple thousands of dollars. The only caveat, which is true for any recommendation, is that your relationship must be first based upon trust and sound familiarity of you, your products and services. Although the amount can be fixed, I have found it best for me to use a percentage of net profit for that client. Do I share that confidential accounting - no! They trust that I am sharing what is fair on that particular piece of business.

I would rather count on me and a system to get business. Follow these guidelines for executing your system, give a little time and you'll see how your data base will generate a predictable amount of contacts, saving you hours of networking and more.

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Article Tags: dependence, marketing programs, referrals, systematic marketing, word of mouth



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