 Referral-EASE: Secrets of Successful Business
Builders - Part 3
By Mara Osis - Action International
A referral-based business where your best
clients and other business associates become your advocates is a business builder’s
dream. In Part 1, we introduced the Referral-EASE mindset, which includes a conscious
decision to focus on referral opportunities and to define clearly what a good referral is
for you.
We also put this in the context of (1) acquisition cost - knowing what
it costs you to gain a customer now, and (2) lifetime value - what a loyal customer
contributes to your business over time, both from the revenue they generate and the
referrals they bring. Knowing these numbers can help you develop
sensible referral recognition and reward
programs, something you can tie
directly back to bottom line results.
In Part 2, we introduced specific steps to initiate referrals from
clients, with a focus on making it easy and fun for them to refer you. In this last
instalment of Referral-EASE, we’ll focus on building referral networks and alliances
both within and outside your direct client base.
Often the first step in getting referrals is to learn how to give
referrals effectively. Whether they are clients, associates, friends, or you are helping
with a business or personal referral, people you help are more inclined to help you in
return. Here are some ways you can help customers, suppliers and other contacts develop
their businesses, and build your referral network in the process. Let’s see the many
ways in which you could help your contact (let’s call her Kate) with her business and
personal life.
Providing contact names is a bare bones referral activity. Why not take
the next step? At the very least, call Kate’s potential customer in advance and
explain why you are referring her. Here’s where it helps to know enough about Kate to
do some subtle ‘pre-selling’. Better yet, introduce Kate to her qualified
prospects personally, or extend invitations to an industry event where she can meet
several prospects at once. You become the catalyst (or maybe the hero!) that shows both
parties how they may benefit from knowing each other.
If Kate’s business provides a complementary product/service to
yours, consider co-op advertising, or displaying and distributing her literature or
product along with your own. You may also consider a joint promotion or host beneficiary
arrangement (refer to Part 2). These kinds of activities can add extra value for clients
and create synergy for both of you. A valued customer or colleague like Kate will
appreciate your efforts to help promote, or sponsor her program or special event.
There is more than one way to be an advocate for Kate’s business.
In addition to referring potential clients, you could be helping her with recruiting new
team members or finding suppliers. Maybe you can help her find a mortgage or business
loan. Maybe you have a media contact she should meet who would help her publicize her
business. You may even know someone that can help Kate with a family or personal problem.
Avoid wasting Kate’s and your time by referring only sources that
you have some recent, positive contact with. Don’t refer anyone you wouldn’t use
yourself, given a similar need.
Whether you are giving or receiving referrals, follow up is critical.
Thank those that give you referrals and let them know how their efforts helped you. On the
flip side, also let your contacts know when you have sent them a referral. After giving a
referral, follow up to confirm whether your ‘matchmaking’ was a good fit. You
like knowing whether you’ve been able to help; others do too. And it also saves you
trouble down the road; you can stop referring anyone who is not performing up to standard.
Being a good referral source enhances your image as a helpful,
‘in-the-know’ businessperson, and adds value to all your relationships. A
genuine interest in helping others is always reciprocated… often when you least
expect it and from the unlikeliest places!
Mara Osis works exclusively with entrepreneurs who
want more out of their businesses, or more out of life! Contact Mara at 403.225.0906 or maraosis@action-international.com |
