A good Referral Marketing Plan has 5 key ingredients: Target Market, Core Message, Follow Up, Trust Trial, and a Reward. Without a clear plan, you will continue you get whatever random referrals you are getting now. So take a second and map out a plan right now...

Target Market:

Before you start asking for referrals, you need to know who your ideal client is and be able to communicate that quickly to your clients and network. Start by writing down a short two sentence description of your target marketing. Then, tell everyone you know about it. It is like putting up a big "WANTED" poster for all your clients, contacts, friends and family. With a good description of who you are looking for, they will easily be able to identify your ideal client and refer them to you.

Core Message:

Now that you have found these ideal clients, what do you want to tell them? This should be a very quick simple description of what is in it for them. How would they profit from your services? You don't need to list all your products and services, just your core mission statement or 20 second commercial. It should be short enough that your network of referrers can remember it, or it can be placed on the back of business card. You want your network to be able to tell these targets what you do in a powerful way, but not sales pitchy or intrusively.

Follow Up:

Most people are not going to stop what they are doing and call you on the spot, so a follow up plan is crucial to converting these introductions into clients. Ask your network to get you a phone number, email or some way of contacting the people that can use your services. You should also make sure everyone in your network has about 5 of your business cards or marketing pieces on them. They should know that they are expected to give the prospect one of your cards, and ask for one of theirs. Do you want them to set up a mutual meeting? Do you want them to bring the prospect into your location? What is the ideal next step for business? Make sure it is taken.

Trust Trial:

The trust trial is a pretty simple concept. People don't trust people they don't know. People hate to fail, look silly, and do things that are uncomfortable. After the initial contact, you need to make sure that it is as easy as possible for the prospect to start using your services. You can only do what works for your business model. Think about what you can do to make it easier to get prospects using your products or services. Can you do a free trail? Can you do a low introductory rate? Can you do a money-back guarantee? Can you do a coupon or free sample?

Most people think of these things without the psychology behind it. Sure some people just want a deal, but others are worried about risking their hard earned money on something they don't know yet. Your "Trust Trial" doesn't have to discount or cheapen your product, just provide an easy way for people to get started. Providing your best service and keeping them as clients is your job, and why you are still in business.

Reward:

The reward is for the people in your network who gave you the referral. Think about the "WANTED" poster again. There is always a reward for finding the person, and the higher the reward, the more people willing to look for them. The same goes for referral plans. Again, this should be based on what you can afford in your business model. If you sell Girl Scout cookies, you can't give away a car. If you sell $100,000 pieces of medical equipment, a thank you card is probably not enough. Make it just painful enough for you that you feel a little uncomfortable. A new client is extremely valuable over their lifetime with you. If you don't care about giving away the reward, most likely, the receiver will not care about getting it.

You should also be aware that some of your referrers will be clients and others will not. A gift card or free service works well for customers, but not for business contacts who don't use your services. Make sure you have a reward that will be useful and appreciated by the person receiving it. The referrer will be more likely to refer you again, and speak even more highly of you.

Conclusion:

Think about the possibilities one more time... If every one of your clients, friends, family, and business contacts had 5 of your cards to pass out to qualified people they meet, you could end up with THOUSANDS of new prospects and clients.

For the plan to be successful, you must clearly give everyone you know specific instructions for how to refer people to you. Let them know that referrals are a part of regular business practices with you and they are expected. Make sure they can articulate your target, message and trust trial. You can even rehearse it with them. If they don't know what to do or what is expected, you WILL continue to get whatever random referrals you get now...

Call Ad Trends Advertising, Inc. today for help with your Referral Marketing Plan. We offer as little or as much assistance as needed to help your business grow.

Start with a FREE 1-Hour Marketing Consultation. Call: 816.228.1123

Labels: marketing