| Referral Marketing is a systematic way of | | | | based referral program that is executed with |
| generating an endless stream of referrals that | | | | your customers at the time they have bought a |
| don't just happen by chance. This is not to be | | | | a product or service from you. |
| confused with word of mouth advertising that | | | | The timing of a transaction based referral system |
| happens haphazardly. | | | | couldn't be more perfect. Since the customer is |
| Word of Mouth Advertising Vs. Referral Marketing | | | | just finished purchasing from you the positive |
| Systems | | | | emotion that they have when making emotional |
| Word of Mouth Advertising is a happenstance | | | | buys is still there. |
| way of generating new business. This comes | | | | An example of a transaction based referral |
| from the customers talking about your product or | | | | program may be offering a discount or a gas |
| service to someone else that may have a need | | | | card for giving referrals at the moment of |
| for it or just in general conversation. | | | | purchase. |
| However this is a very unpredictable and non | | | | Considering that they saw enough value in your |
| trackable way of generating new referral | | | | product or service to purchase it and they are |
| business. Most small business owners or small | | | | going to be spending the money anyway the |
| business professionals believe the myth that this | | | | participation on this product should be pretty high. |
| is how most referrals are generated and that | | | | Integrated Referral Marketing |
| couldn't be further from the truth. | | | | Integrated Referral Marketing is based on the |
| Referral Marketing on the other hand is a | | | | concept of integration marketing with a referral |
| systematic way of generating high quality | | | | based twist. |
| referrals. It is not hap hazard it is strategically | | | | The key here is to find other businesses that sell |
| planned. Referral systems should generate | | | | products that are related to your product to the |
| consistent predictable and trackable results. | | | | same audience and to integrate your services in |
| Develop A Referral Mindset | | | | their business. |
| The first step to referral marketing is to have a | | | | An example of this would be an health insurance |
| referral marketing mindset. This is a mindset that | | | | agent leaving a one page newsletter or "free |
| understands that all clients have connections and | | | | report" in the local doctors offices and hospitals |
| relationships to other potential prospects that | | | | for the patients to read. |
| would be a good fit for your business. | | | | The patients in the doctors offices are actually |
| You must also keep in mind the quality of your | | | | thinking about their insurance considering that they |
| customer service when dealing with each client as | | | | either just go through or are about to pay a |
| this will determine whether or not they will | | | | doctor bill. They are either satisfied with their |
| participate in your referral program. | | | | coverage or their not. |
| You must also understand that each client is | | | | Most people read magazines and other publications |
| worth more than just them by themselves as | | | | while waiting anyway why not let it be yours. Just |
| the have relationships that can help grow your | | | | when they are about to reach for People |
| business. | | | | Magazine they say your newsletter that says |
| 3 Types of Referral Systems | | | | "Free Special Report Reveals the 3 Things Your |
| Incentive Based Referral System | | | | Broker Never Told You About Your Health |
| The core of any referral system is the incentive | | | | Insurance, Why You Might Be Overpaying to Be |
| program. Most individuals or other business | | | | Under Insured!" |
| owners are simply to busy or or to lazy to tell | | | | Make sure that your contact information is on |
| others about your business when they have their | | | | there so they can call you for an appointment or |
| own concerns to worry about. | | | | to request more reports. Simply come by once a |
| Therefore you must offer some sort of incentive | | | | month or so to replenish their reports. Most |
| to get your referral partners to participate. These | | | | practices won't mind since they have reading |
| incentives may include but are not limited too free | | | | material available anyway and it costs them |
| products or services, discounts, or even fee | | | | nothing. |
| based incentives. | | | | Although this is just one example it can be used |
| Transaction Based Referral System | | | | by anybody in any industry as long as you tailor it |
| A transactional referral system is an incentive | | | | to your particular niche. |