Generating new leads from industry peers is essential to staying in business. So how can an executive team begin to build a referral marketing program that benefits all stakeholders?
It has a lot to do with brand visibility, reputation and bandwidth to ensure customer satisfaction levels. But it all starts with a focus on building relationships and bringing in industry peers who are willing to give as much as they get.
Below, nine experts from the Forbes Business Development Council discuss additional issues leaders should consider when building an effective referral marketing system.
1. Is the referral system easy to understand?
You can try to sell a product or service, but don't exaggerate or mislead. Make sure the referral system is easy to understand so people can use it to refer others. Build customer relationships by engaging customers using brand awareness. Use incentives and rewards to attract customers, but don't limit it to just discounts. - Dr. Edward Burns, Jr., Advantage One broker
2. Are the goals of the partnership compatible?
The referral marketing system uses the art of networking and the art of communication is based on trust and connection. The most important questions to consider are: "Do I agree with the product, service, offer, person or brand I am referring to? Am I motivated by financial gain or will this recommendation actually help, improve or benefit the person?" Or business?" - Anzhalika Kubich knows the business
3. Are work roles shared and delegated?
The most important step is to divide the service into appropriate stages, such as after-sales, first contact and others. Then carefully separate roles for delegation and execution. This alone ensures that every customer receives first-class service, which is very important because dissatisfaction with new customers in the referral marketing system affects the trust of both the service provider and the referring company. - Anna Jankowska, RTB House
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4. How strong is the network?
Building and maintaining relationships is key to generating new business. Once a relationship is established and trust is established, your internal referral network will begin to move forward. Providing a product or service that your customer really needs, white glove service and transparency throughout the process will set you up for success. - Cristina Ramirez, telemedicine specialist
5. Do you focus on quantity or quality of links?
Two things to consider when building a referral marketing system are the results you want and the partners you choose. If you value quantity over quality, you will end up with an inefficient process and less tangible results. Some partners are consultants who can offer you deals, some sell end-to-end solutions, and others provide onboarding services. That is why it is important to define your needs in advance. -Jennifer Haas, Touch CRM
6. Is there an open connection ?
A referral marketing system is useless if your customers aren't really interested. Before starting a program, it's important to build a relationship with your customers and your brand. Communication is essential in any successful relationship, so spend time talking to your customers. Pay attention to them and give honest feedback. Treat customers as a direct link to your market research. - Birender Sani, PruTech Solutions
7. What incentives do you offer?
Make sure the sender gets something out of the deal. The most successful referral programs I've used have used these incentives: paying generous sales commissions, offering Amazon gift cards, or discounts on company products. Companies can also offer non-monetary incentives. Sending a handwritten thank you note will make your referrals feel grateful and want to send you more referrals. - Bryce Wecker, Crushing the Challenge for Financial Analysts
8. Do you reply to comments?
The most important thing people forget to include in their referral marketing system is to make sure they build relationships between themselves, their brand and their customers. People can't relate to a product or service, but they can relate to a person. You and your team must be proactive in answering customer service questions and listening to feedback. Referrals and connections go hand in hand. - Josh snow, snow
9. Is the bypass system balanced or unbalanced?
There is an imbalance in referral marketing. This seems a little contradictory, but let me explain. There must be reciprocity in any referral dynamic: give back what you give. However, if it is somewhat out of proportion and you apply more than you get, at least initially, it will give you back 10 times more. It is better to give generously. - Arjun Dhingra, All Western Mortgage