How to Maximize your ROI with Referral Marketing

Referral Marketing is Key to the Success of Your Business

ReferralBlogAs an Advanced Marketing Specialist, many clients ask me, “How do I get more leads?” You may get a few leads from Pay-Per-Click, Social Media, or Retargeting Campaigns, but the results cannot compare to the constant flow of business you could achieve by partnering with another professional in the industry. Additionally, leads from a referral source are much higher quality than those generated through other marketing tactics.

Why is Referral Marketing Important?

  1. You have more control over your target audience. Once you establish a relationship with a Referral Partner, they already know the services you offer and what type of clientele you work with.
  2. You don’t have to sell so hard. Your referral partner has already done most of the work for you. Usually, leads will trust the opinion of your referral partner. All you need to do is provide the excellent service they’ve heard all about.
  3. You can close more business. A lead from a referral partner is the warmest lead you could get so the chance of closing the sale increases.
  4. Numbers tell it all. Based on a survey taken from NAR’s 2017 Profile of Home Buyers and Sellers, 52% of buyers found their agent from a referral from a friend or family member. 64% of sellers used a referral or the same agent. 88% of buyers and 85% of sellers would use their agent again or recommend their agent to others. Only 9% of buyers and 4% of sellers found their agent through searching online.

Who can be a Referral Partner?

A referral partner can be anyone who may benefit from sending a referral to you.

  • Industry Professional that you can also refer business to that is not a direct competitor
  • A previous client
  • Friends and Family

Why aren’t more businesses taking advantage of Referral Marketing?

Everyone looks for ways to get leads quickly, so they often invest more into advertising to get in front of more people. It’s easy to get lost in the world of advertising. While PPC can provide the quick leads you are looking for; it often requires a more extensive budget to achieve your desired ROI. Running paid advertisements can have their advantages, but before you invest in constructing your home, you must start with a strong foundation.

The other reason more businesses don’t take advantage of referrals is that they simply don’t take the time to ask. Reach out to family and friends, make it part of your closing script, and reach out to industry professionals. Do not pass up the opportunity to generate new leads and more business because you don’t ask. And the best part about it is, IT’S FREE!

How can you find more Referral Partners?

Create a List

The easiest way to start your list is to think about friends and family who can refer business to you. Next, look at your database and start writing a list of your most recently closed clients whom you went above and beyond for. Lastly, think of anyone you may know in related industries that could benefit from a partnership. If you do not know any industry professionals, use the internet!

LinkedIn is an excellent source to find Referral Partners in a non-invasive way. The sole purpose of LinkedIn is for networking with other professionals. Take advantage of this opportunity! LinkedIn offers a great search system in which you can use filters to find specific industry professionals in your area.

Turn back time and think about how people used to find businesses: Yellow Pages, Newspaper, Phone Directories. Fast forward to today, and we have the world wide web where Google is the go-to source of information.

Create a pitch

The pitch will make or break the new relationship you are about to embark on. This is your first impression so make sure to include the benefits of your mutual relationship. If you are reaching out to past clients, an incentive can be a Starbucks gift card for any deal that closes or a discount for a future purchase, if applicable. However, if your service was exceptional, you may not need an incentive.

If you are pitching B2B, your pitch will be very different. If you have a website with 220 Marketing, make sure you show them the full benefit of having their name or listing on your site as well as your monthly newsletter.

Reach Out

Phone Call – Call your friends and family and talk to them about your business. Ask them to keep you in mind anytime they come across someone in need of your services.

Email Blast – Email the most recent clients you’ve worked with and remind them of the great experience they had with you. If you offer a Referral Rewards program, don’t forget to include that in your email. Every 220 Marketing website consists of a lead capture for referrals so be sure to include that link.

Social Media Ad – Create a post with your referral incentive and boost it so that you get the best reach possible.

Connect on LinkedIn – Look for connections using their advanced search. If you find a second connection, first reach out to the connection you both have in common and ask them to introduce you. Make it easy for your connection by drafting a template they can send to the professional you are looking to connect with. Include the link to your Preferred Professionals Success Center on your website to show tangible results.

While Referral Marketing may not be the quickest way to generate leads, it is the best way to generate the highest quality leads for less money. If you are unsure if Referral Marketing is right for you, ask yourself these 3 questions:

  1. Do I care about quality leads?
  2. Do I care about my brand?
  3. Do I care about building relationships?

If you answered yes to any of the above, start thinking about the value of your business and make sure that everyone else knows it by spreading the word.

Speak with a Marketing Consultant today to learn more about how Referral Marketing can bring success to your business!