WINNING new clients through the power of referrals is something every business needs to thrive in the long term. In the second of a three-part look at referral marketing we examine how a referral network is built.
TO TURN a referral network blueprint into reality, the question businesses need to ask is why do existing clients and customers refer business in the first instance?
Romey Ghadially, a consultant with business development specialists the Pace Partnership, believes this is because of five factors:
1. The business has got itself on the referrer’s ‘radar’.
2. The referrer trusts the business.
3. The business has actively encouraged referrers to refer clients to them.
4. They do an excellent job.
5. The referrers gain something in return.
Get referrals: 1. Putting yourself on a referrer’s radar
Some of your referrers may know you very well, while others will know some of your capabilities.
“Ideally, you want to motivate all of them to want to enter into a dialogue with you to start to uncover potential opportunities,” advises Ghadially. “Speaking face to face is going to be crucial to building that vital trust.”
One way to motivate referrers to talk to you is through targeted campaigns – ones that address their interests and motivations.
“We have seen great campaigns feed referrers with articles, news clippings, books and publications on topics that interest to them.”
Get referrals: 2. Behaviours that build trust
Having sent several communications to referrers over several weeks, you can suggest a meeting. “Avoid spending the whole time extolling the virtues of your firm,” warns Ghadially. “Your focus should be on getting to know the referrer, as this knowledge will enable you to explore a suitable way forward, one, which the referrer is comfortable with.”
How successful the meeting is will depend on whether you have managed to build or start to build a position of trust.
“We have found that to earn such a position in a referrer’s eyes, professionals need to build an image of credibility, competence and compatibility,” says Ghadially.
He adds: “Credibility is typically built by having confidence, creating a good initial impact, being honest, delivering as promised
“Competence is established by demonstrating knowledge, having a good track record and expertise, and asking searching but non-manipulative questions.
“Compatibility comes through demonstrating genuine interest, active listening, adapting behavior, and showing you care and showing vulnerability.”
Get referrals: 3. How to encourage referrals
Timing is very important when it comes to asking for referrals, says Ghadially. “Quite a number of successful firms we’ve come across do so just after they have completed a particular project.”
And then there’s the asking.
“The best firms are guided by the referrer’s likes and dislikes,” says Ghadially. “If you have done work for a referrer’s contact, ask if there’s anyone else in the same situation who could do with the help. Always have in the back of your mind that, in referring your firm, the referrer needs to maintain their position of trust with their clients and contacts. If you can suggest anything that builds their own competence, compatibility and credibility do so.”
Get referrals: 4. Doing an excellent job
Once a referrer brings you a piece of business, it’s crucial that you do an excellent job. They will be watching you closely to see you do not damage their reputation or their relationship with that client or contact.
“Referrers have a degree of nervousness when an adviser undertakes the first piece of work for one of their clients or contacts,” observes Ghadially. “The more effective firms help allay this by keeping them ‘in the loop’ and communicating to them as well as their client during the project’s progress.
Get referrals: 5. Rewards and reciprocity
Referrers who expect no more than a ‘thank you’ for the leads they pass on will be few and far between. “The type of reward the referrer wants will very much depend on who they are and what motivates them,” says Ghadially.
“If they are interested in a financial reward, you could explore a commission-based system.”
Related posts
Business referrals - building a referral network
7 step guide to attracting new clients
Business referrals - a 5 step strategy
30/03/2010
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