Thursday, April 9, 2009

Say It With Words

Thank you to my friend Naomi Finkel of Say It With Words, (818) 991-1587, http://www.siww.net/, for her latest newsletter. Since it fit so nicely with some of the things I am addressing, I thought to share it here:

Your Most Cost-Effective Marketing Strategy

A few days ago, a neighbor asked me for the name of a plumber I have been using for years. A week ago, I asked a friend for the name of gardener. Last month, I was the guest speaker at The Oaks at Ojai, a health and fitness spa. During meals and at break times, I asked the guests at the spa how they knew about this place. Six out of ten people said they heard about it from friends or relatives who had been here.

If you provide outstanding service, people will talk about you and refer you to others who will also benefit from the services and/or products you offer. I know... 70% of my business comes from referrals!

So, how do you cultivate a Referral Program as a productive marketing strategy? Here are some tips...

  1. Whenever a new person calls or contacts your office, ask how they heard about you. Send a thank you note or an e-mail to the person who made the referral even if the new contact does not become a client.
  2. After about a week, call the person who asked you for the referral and ask if they ever followed through. If they did and you have not received an acknowledgement of your referral, find out why. This is called "common courtesy." Tell them in the future if they receive a referral from you, you want to know if your referral called.
  3. If the referral becomes a client/customer, then I send an appropriate gift to the person who made the referral. Some companies offer a referral fee. Whatever, make certain you show your appreciation for the new business. This is a wonderful way to build a loyalty program.
  4. If it is appropriate, you in turn could make referrals to your clients, vendors, associates and organizations.
  5. You may want to promote a referral program. On your website or your promotional materials, describe your referral program and what you offer as a Thank You. I would not give a discount on your services since many of the people who refer to you may not need your services. Do you really think I would appreciate a 25% discount on my next nursery school enrollment for my (adult) kids?
  6. A wonderful idea... in your newsletter or on your website, thank the people who have made referrals to your company. We love to see our names in print, especially when it is a positive gesture....

Thank you to Naomi for her great ideas, and for her book, How to Get Big Business Exposure on a Small Business Budget, available at http://www.amazon.com/.

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