Powerful Referral Marketing Strategies
Referral marketing is a very cost and effective way to promote your business. It involves using your current customers to gain new customers. Referral Marketing Strategies are often over looked by business owners and sales people alike. You simply have to ask your customers for referrals – that’s it, just that easy – ASK! You will find that in just about every instance your clients will give referrals without hesitation. If you really want to ramp it up, offer some type of incentive to reward your referral giving customers with. 
Reasons for Referral Marketing
A referral is really a warm lead that is second to none when it comes to generating new clients. When a potential client is referred to you they are generally less price sensitive because they have pretty much been pre-sold on your services and products by your existing client. It’s like you are already friends that are linked with a common element making the trust level pretty high. Meaning these referrals are not going to beat you up on price, they are willing to pay full price for your products and services based on the simple suggestion of their friend.
Referral Generating Greeting Cards
Many people find it difficult to ask customers for a referral, not wanting to put them on the spot or make them feel uncomfortable. Enter the Referral Generating Greeting Card. Using a greeting card to thank your client and encourage them to refer friends, family and business associates to you is actually more powerful than simply asking them face to face. In the Greeting Card you can offer them an incentive or gift for any referrals that generate business. They will surely keep the card around their house or office as a constant reminder that if they send you referrals they get something. It’s the old “What’s In It For Me” scenario.
Be Sure To Test and Track The Referral Marketing Strategy
As with any marketing strategy you need to test and track the results to be sure your efforts are successful. You can easily put together a system that tracks when you send out these cards and to whom you have sent them. Then be sure to tag any new business to those who have sent you the referral and reward them handsomely. Once they get their first reward they will surely continue to send you referrals.
Tim Somers
Great advice – I worked for a major direct sales company for nearly a decade and a significant part of their growth strategy was based on referrals – thing is, the business needs to remember they have to be ‘referral worthy’ … meaning most people will only expose their friends, family, associates to your company if they feel very confident it come come back to embarrass them as a result.
That is so true Marquita, I have passed on giving referrals myself for fear of being embarrassed should something go wrong.
Hey Tim,
Enjoyed your article. Referrals really are awesome aren’t they!
As you stated in your article, a referral is a warm lead. I’d even call them Red Hot! Your referral already knows a lot about both you and your product or service which you are selling. Some of them may even know your life story, Lol! Sending out greeting cards is a great idea. I myself send personalized video emails with customized templates to suit my clients business or personality … they work great!
Thanks for sharing Tim and reminding us that often our best marketing is from a sale already made.
Kevin
Kevin, you are right referrals are often Red Hot! It’s all in what you do with them once you get them. Thanks for stopping by.