Referrals Through Social Media

Social media is a term used to describe the type of media that is based on conversation and interaction between people online. It’s a hip term these days if you’re in the know, but there’s still a surprising number of professionals who’ve yet to embrace it, which is a shame, because business interaction has changed dramatically even in the last 5 years, and in many ways, social media can be one of the most effective means of building a network of individuals who will refer you business if done properly.

We’re working on adding an element to Hello Referrals that introduces the ability for the user to tweet when the passage of a referral has occurred – whether received or sent. We’ve  taken the time to build up a follower base that is by no means huge compared to some people, but that I’ve taken a great deal of effort to ensure is based on quality followers that are a combination of people I know or who work in a complimentary industry. I’m committed to my social media platform as a key component to my referral marketing initiative and its been paying off. Some of my followers are people that I meet at my weekly BNI meeting, and who’ve also embraced the referral marketing philosophy, and I make an effort to meet as many of my followers face to face as I can. As a result, I’ve generated over $5700 of referred business via Twitter since January. This is business that would not have been on the books otherwise. These referrals represent my network of followers picking up cues on Twitter for other users who required the products or services that I provide.

What I like about Duct Tape’s article is that it emphasizes a point that is key to all successful referral marketing exercises – the more social and connected you are, the easier it is to refer you. If you create a sense of community, which is the essence of social media, and put your business out there, your referral partners are introduced to a heightened element of visibility and communication. With that said, it’s not as simple as just starting or having a blog, or even just signing up for a Twitter account. It’s also not as simple as going bananas with your blog or through your tweets and obsessively updating them daily with content that is simply selling, monopolizing the soapbox, or speaking in a one way direction. You need to engage. Your commitment to the medium is key to your credibility inside of it. Discuss and create high value dialogue about your industry and what you can do for people. Create chatter about a positive experience you’ve had or suggestions you think are sound. The consistency with your maintenance of a social media strategy is as important as the referrals you receive from it.

How has social media benefited your business? What kinds of successes have been introduced to your referrals as a result of it? What are some of the strategies you employ? Share with us, and leave a comment….

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Networking and Referral Marketing Mistakes: Don’t Assume…

“Small Business Referrals” …”Word of Mouth Marketing” …”Professional Referral Networks”…

I think a lot of us hear these words, or research them online, and put together a kind of frame of reference that involves many people with ties and briefcases. We mentally call up those stock photography shots of people around a pie graph closing a deal, or celebrating a huge quarter that you’ll find if you image search terms like “business professionals” or “business networking”. Some of us may feel a little alienated by that if we don’t exactly work in sharply pressed attire all day or have a swanky commercial downtown suite. I certainly don’t. I own and run a media business from my home office. I revel in the fact that I can have a casual Tuesday AND Thursday, or maybe rock the “Fletch” look a bit with sneakers and a blazer under a Lakers shirt. Some of us are laborers, contractors, and renovators. Some of use might be toiling on cars all day. Some of us are florists, day care workers, graphic designers, or home inspectors. I think you get the point. Most businesses are “small businesses”. They are not in high rise office environments. They’re in retail outlets, strip malls, business parks, and homes. They’re also less then 15 employees big. With the economy and employment shaking up like a paintcan in a tumbler, there’s adaptively been a rise in the number of home based small businesses and consultancies. In many ways…small business has gloriously and successfully gone guerrilla. Don’t assume that just because you’re a SMB, the benefits of having a referral strategy aren’t within your grasp or beneficial to you. If anything, we’re in more of a position to benefit from them as a result of our flexibility.

There’s also a wickedly inaccurate misconception that there’s minimal to no return when networking with people who don’t do something complimentary to what you do. There’s an element of intimidation and trepidation with joining something like a BNI group, or attending a Meetup. I don’t think it’s because these groups go out of their way to ostracize these potential members or networking partners. I think it’s because professionally, most businesspeople can have negative assumptions if exposed to people who aren’t immediately in their realm of opportunity, and even…dare I say…some of us may be professionally insecure.

I was discussing this with a networking partner of mine who owns and runs a granite fabrication business. He cuts and installs stone, and networks regularly inside of a rotary club and within his own list of people that he’s created. I was pleasantly surprised when he reported to me that he received more then $75,000 work of work in his last fiscal year from one of his networking partners – a caterer. He meets with her regularly, and refers clients to her that he meets when doing installations of kitchen counters and floors. After having met at rotary, he admitted that he wasn’t expecting much of a synergy between them. He assumed that his best bet at gaining some referrals was going to come from the contractor and stonemason who are also a part of his club, and he naturally gravitated towards them because of what felt was a commonality. Although they are great referral partners, and he enjoys a mutually beneficial arrangement with them, he gets slightly more referrals from the caterer. He admitted that he initially avoided a meeting with his catering friend because he didn’t think she’d be in as strategic a position to refer his services. He was wrong.

The lessons? It’s your attitude. Assuming someone won’t be a successful referral partner is a mistake. Discounting referral and network marketing – really any kind of marketing strategy for your business – is also a mistake. It’s not just for those of us who wear suits and ties. It’s for all us. Referrals can come from the most unexpected places provided you’re open to receiving them, and assumption can hinder wonderfully successfully things from occuring.

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Partner Referral Vs. Customer Referral

Partner referrals: These are the referrals you receive from like minded and complimentary businesses to your own. They are not your customers. They are partner businesses in your network. They haven’t purchased from you. They are motivated to keep a momentum of referrals with you anticipating a reciprocal return for the people you meet that may be looking for their services.

Customer referrals: These are referrals that come from your current customers. A customer referral is someone you’ve done business with already, and who you want to encourage to send you more business. They are motivated differently. They’ve had such a pleasant experience dealing with you, that you’re at the top of their radar when they come across someone else looking for what you offer. They are motivated by referring you to create a benefit for someone else.

They’re both great referrals and no cost business opportunities, but very different. Savvy business people will know how to leverage both streams to great returns. Many only focus on one. Partner referrals is what our application will help you manage. These tend to be better qualified because they’re coming from your circle of trust – your partner network. The motivation is based on an expectation of reciprocation, and the model is a community building individual businesses collectively, but if you’re ignoring the other main element of referral marketing – referrals from your customers – then you’re approaching what is an overall referral marketing strategy half effectively. The first step, is knowing the difference. The second – understanding that both make up what is no cost referral based marketing.

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VCP – An Important Acronym When Seeking Referrals

VCP stands for “Visibility”, “Credibility”, and “Profitability”, and is an acronym that was coined by Ivan Misner, the founder of BNI. VCP is a telling overview of the process involved when working to establish a reciprocal referral partner, and also acts to better develop a keen understanding of the process to effectively identify who to have a reciprocal referral relationship with and how to qualify those to include in your network of referred professionals. The building of a referral network – your circle of trusted professionals who you refer, and who refer you – isn’t just about meeting someone who fits a category that you’re trying to fulfill. It’s about knowing when, and how to ask, and a compatibility and like mindedness to establish credibility ultimately leading to a mutually profitable and successful relationship.

Mike Macedonio, the President and Partner of the Referral Institute, the world’s leading referral training organization, illustrates VCP well in this article at the Referral Institute web site.

Comment or share you stories with us about how VCP has played into the establishment or management of your referral network.

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Word of Mouth Marketing

Referral Marketing is also known as “Word of Mouth Marketing”, and how you do this is as important as actually doing it. Creating that word of mouth buzz with your existing customers and trying as hard as possible to ensure that a sense of advocacy for your business is created is essential to achieving referral success. Word of mouth is the most powerful medium on the planet, and if you’re wise, you’ll review the processes within your business to ensure that whenever possible, every one of your customers is potentially in a position to refer you because of what is an overwhelmingly positive experience that was pleasant and that produced favorable results. Here’s a few quick tips to increasing your word of mouth potential with customers:

1. Review your customer process. Whatever business you might be in – assess whether your process of earning someone’s business and then seeing it through is creating a stress free, uncomplicated, and pleasant experience. As an example, is simply engaging with your business easy enough? You’d be surprised how often business owners get too caught up in operational effectiveness, that they lose sight of important things like initial responsiveness – think phone systems that make customers yell “agent” or maniacally dial 0 to actually speak to a real live person.

2. Ensure that you are reliable. Whatever you say you’re going to do, ensure that you do it. Don’t dissappoint.

3. Manage expectations. Ensure that your customers are fully aware of what’s involved when doing business with you, and never put yourself in a position where you’re making excuses or explaining why you didn’t do the second item in this list.

4. Over deliver when possible. If you can, this is one of the main elements of what creates a sense of satisfaction and makes people WANT to refer you.

5. Create a sense of importance. Genuinely care about the business you earn and treat each opportunity with a sense of respect and concern.

6. Ask for a referral. Encourage the passage of your information onto another potential customer through your existing one.

If you do these 6 simple steps, you’re positioning yourself for the greatest likelihood of a referral and you’ve graduated to being a word of mouth marketing expert. These logical suggestions make up the successful formula for retaining and growing business with no cost.

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