- Written by Frank Bentley Frank Bentley
- Category: ABG Affiliated Business Group ABG Affiliated Business Group
- Published: 21 July 2018 21 July 2018
Referral marketing is a method of promoting products or services to new customers through referrals, usually word of mouth, but since the coming of the Internet, now online. A referral is the opportunity to do business with someone who is, or who may be in the future, in the market for your product or service.
It is said, on the average, that referrals can make up to 75% of a company’s business. *Customers feel better when they have a good reference about who they do business with, and all too often do not have any ideal where to go when a particular product or service is needed.
Frank Bentley, of ABG Marketing, has been doing business in the Southern Dallas area for the past 25 years. His contacts in the various chambers of the area, networking organizations, as well as Leadership Southwest, have brought him in touch with a great number of local businesses. Also, he was involved in producing and publishing two magazines over the years that were mailed to over 40,000 homes monthly in the Southern Dallas and Northern Ellis county areas. These publications again brought him in contact with many businesses in the area.
Being in the website and graphic design through these same years has also helped Frank understand the marketing needs of local small businesses.
Consider advertising on SW Dallas Small Business Network . Frank will use all of his resources to make your business his business. Through Frank’s Online Referral Service on this website, e-mail marketing to over 6,000 local emails, promoting members on www.nextdoor.com, and postings on various Facebook pages like SW Dallas Small Business Network and other social media, Frank will work hard to promote your business.
Referral Marketing Benefits
The business of referrals makes sense for most companies for the following reasons:
- Referral marketing reduces your sales expense and sales cycle. With less time calling cold prospects, your small business can focus on customers and their circle of influence.
- Referrals can build your level of satisfied customers. The cycle self-perpetuates with more satisfied customers referring others to your company.
- Referrals increase your sales revenue. Your closing ratio for non-qualified leads can be as little as 10 percent versus a possible 60 percent close ratio with referred leads.
*Ways to Build Your Referral Business
- Set a clear goal with a time line. For example, 10% increase in referral business over the next 10 weeks.
- Give your clients time to experience your service or product before asking for a referral. Ask for the referral at close only if your client is already delighted with your business.
- Not all customers are referral candidates. Find the top 20% that are ecstatic about your business and ask them for referrals. Make sure their network is the type of client you want.
- Give your clients extra service and follow-up support before asking for referrals. When you give willingly to your customers, they will return the favor.
- Inform your referring clients of the type of customers you can help. Provide a clear picture of the customer demographics will help your referral marketing.
- Provide special rewards to your referring customers on a regular basis. If a customer provides you with 5 referrals, offer them something special, like discounts or free services.
- Establish trust to build referrals. Create a basic thank you letter that can be personalized and sent to each referral you receive. Treat your referral sources with the utmost of care and you will not only build a foundation of trust but keep hot prospects coming to your door.