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.