Referral marketing is a method of promoting products or services to new customers through referrals, usually word of mouth. Such referrals often happen spontaneously but businesses can influence this through the appropriate strategies.
Referral marketing is nothing new, in fact, people who use Social Media for marketing are actually using it. When people get to know, like, and trust you, even through Facebook , they will buy from you. And, if they like your product or service, they might post something about it, and refer others to try it.
It is a great way to leverage your time and money in your marketing efforts. In fact, referral marketing has the highest Return on Investment of any other marketing method. It's the most effective marketing strategy and has the lowest cost. People naturally want to help their clients--- and 90 percent of people trust recommendations from people they know.
A great tip to increase referrals is through aligning yourself with others who serve the same customer, and have a business that complements yours. One example might be if you are a Real Estate agent, you could align yourself with a mortgage broker, a lawyer, a home improvement company, and a painter.
You should also agree to have a plan to stay in touch, whether it be via phone or at networking meetings, just to keep communications open. You never know when something said will trigger a referral for one another.
When someone asks you for a recommendation, what do you do? You give the name and contact info, but most people forget to follow up to see if any transaction actually happened, and if they experienced and/or enjoyed the service. So now the effort gets lost altogether.
According to Dr. Ivan Misner, founder of BNI, 98 % of Businesses rely on referrals, yet only 3% have a strategy for referrals.
Many Small Business owners:
• Don't Plan out the Marketing in Advance
• Don't follow up with their referrals
• Don't use Social Media effectively to influence buying decisions
• Don't feel comfortable asking for referrals
• Don't know how to build referral partnerships
• Don't have systems to manage the referrals they give and receive
• Discount their fees deeply in order to win the business
Now you might be thinking, hmm. That all sounds familiar, but what should I do?
There is a new, revolutionary business referral system that generates and tracks leads for Small Business owners, think Linked In meets Angie's List. You can get a FREE referral web site page to get started right here:
For More Small Business Tips for On-Line Marketing, just go to http://www.bigdogzmarketing.com
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