GUEST BLOG: Six tips to get solid and regular business referrals

By Colin Horan, director at the The Referral Institute Ireland

We’ve all been there: You get a referral from a friend, business associate or client. You’re grateful that they thought of you and they’re happy they could help. However, within the first minute of meeting the referral you know it’s not going to go any further than the Starbucks coffee you’ve just bought them.

But why has this happened? How could someone you would expect to know you so well get it so wrong? It may be that they don’t truly understand what it is you do or perhaps they’re not clear on what your target market is and what might qualify a good business lead. Whatever the reason, one thing is sure: It’s your fault.

If you wish to receive solid referrals that turn into new business for your company, then it is your responsibility to identify those who can make the necessary introductions for you, educate them about your business, the way you work and the best way to introduce you to their contacts. If you aren’t willing to invest the time to do this then you better get used to drinking all those pointless coffees.

So how can you overcome this challenge? The answer is simple – develop a referral marketing strategy.

Before you ask, I’m not talking about network marketing. While referral networks and card swapping exercises have their place, unless you approach them strategically you will generally end up wasting a lot of time for very little return. Better still the only real investment associated with referral marketing is your time, which makes it the ideal marketing tool for any businesses of all sizes.

True referral marketing, like any other marketing discipline, allows you to track, monitor and predict referrals. Here are six short tips to get you on your way to devel oping your own strategy:

1.       Make it personal
Because referral marketing is so heavily based upon relationships it is important that you understand where you fit into your business. You need to go beyond blurting out the same old sales message every one of your competitors uses; ‘We’re a cost effective solution’, ‘We listen to our customers’, ‘we provide creative solutions’ bla bla bla. Nobody cares and everyone expects this. You need to make things personal. The first step in doing this is to identify your ‘emotionally charged connection’ to your business – why you do what you do. You must have a clear vision for your company and be able to share your company’s mission with others.

2.       Your target market
It is important to clearly identify those people and businesses that you wish to do business with, that you believe you could benefit based on the qualities you identified in step 1. If you try to target everyone, nine times out of 10 you’ll end up attracting no one. So take the necessary time to identify the people you need to speak with, in the businesses you wish to work with.

3.       Your people
You should look upon your referral sources and partners as part of your business development team, so to speak. They are your champions and will pull you onto a team or make that valuable introduction whenever they can because you’re an expert in your field that they know and trust, and you’ll make them look like a winner. They are the ones that give you the support and strength to build a great business. It is important to remember that you must contribute to their success also. Referral marketing is a mutually beneficial approach to business.

4.       Put the time in
This relates to the things you do and the time you spend with your referral sources, getting to know one another both professionally and personally. The logic behind this is simple: people refer people they know, like and trust. What’s more is that by bringing them into your personal life they will develop a better understanding of your interests outside work, which may provide an opportunity for them to refer you without being too blatant. From one-to-one meetings to explain your businesses, to meeting for a pint or playing a round of golf together, giving your referral sources an insight into your life will add both visibility and credibility to your relationship, which will result in profitability.

5.       Equipping your people
In order for your people to refer you, it is important that you fully equip and train them to identify an opportunity for your business, and an in-depth insight into you and your business so that they can speak knowledgeably and confidently on your behalf. This can be the difference between a low quality, unqualified business lead and a strong, ‘let’s shake on it’ referral.

6.       Supporting your referral marketing
The final step in developing a truly effective referral marketing strategy is to ensure it is integrated with your other marketing efforts. Having a clear and concise message that runs throughout your networking, PR, advertising and online activity is paramount. Go through your website, brochures, whatever other means you use to communicate your business to the world and make sure your message is consistent and that it expresses what you and your business stand for. Social media in particular continues to be an increasingly powerful tool for developing your reputation.