This week’s Dear Katie question actually comes from a podcast that I was on. They asked me: I’ve heard many firms say they only use word of mouth for customer acquisition. Does that feel accurate to you?
And this is a question that I feel needs more elaboration on my part.
First, yes, it’s accurate.
Referral marketing can be a major part of your marketing strategy, but I want to talk about:
If you’re sitting back and waiting for referrals, you’re limiting a source of business that drives 65% of new business.
And this is exactly what most firms do… they sit back and wait for referrals to roll in.
This approach has significant limitations:
Creating an effective strategy to grow your firm with referrals will require you to jump into the driver’s seat and take control of your marketing.
How do you do this, especially when it comes to referral marketing?
Who are your ideal clients? Clients are not created equal. Sit down and figure out where your best clients are, including:
Create a profile of your ideal client so that you can guide referral efforts.
Your referral partners can be an invaluable asset to your firm, but you need to educate and empower them. Create clear guidelines for your ideal clients, including:
Take it a step further by providing landing pages that your referral partner can provide to others who they believe are a good fit for your firm.
On the landing page, you can outline who you help, including niche, business size, services pricing, next steps to work with you and anything else you deem important.
Landing pages help your referral partners refer clients that you actually want to work with. And the referral can also view the page to learn if they’re a good fit for your firm and the next steps they need to take to begin working with you.
There’s no right or wrong way to incentivize and recognize someone when they send you a referral. Money is always a great incentive, but it’s not required.
Here are some other great incentives:
Again, money isn’t required, BUT it can be a great motivator. For example, if you say, “Hey, for every client you send my way, I’m happy to pay you $500 or $1,000,” that can be pretty motivating for people.
Sometimes, the best referrals don’t come from clients. They come from strategy partnerships with complementary businesses that serve a similar client base.
These strategic partnerships can refer clients to you, and you can return the favor. It’s a mutually beneficial relationship that can prove to be very fruitful.
Who can you partner with?
This will depend on your client base, but consider bankers, financial advisors, attorneys, niche coaches, niche influencers, etc. These professionals and individuals likely have similar clients to yours.
To ensure your referral strategy continues to kick ass, make sure that you’re following up with clients and partners.
Staying in touch will keep your services at top of mind and will remind them of the value you provide (and any monetary incentives as well if you choose to provide those).
Your follow-up can come in the form of newsletters, updates, success stories, or a combination of all of these things.
I recommend following up with clients and partners monthly or, at the bare minimum, quarterly.
Launching your referral strategy is just one piece of the puzzle. You also need a way to measure your efforts to see what’s working and what’s not.
Make sure that you’re tracking your results and making adjustments if things aren’t moving in the direction you want. Continue to refine your strategy and make improvements over time.
Implementing a proactive and structured referral strategy puts you in the driver’s seat. It allows you to take control of the client acquisition process, attract the right clients and refine things over time.
And, that’s a wrap on this Dear Katie question.
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Now I want to hear from you. Do you have a question?
Until next time, cheers to your success!
Katie
Relying solely on word-of-mouth limits your control over client acquisition and can lead to unpredictable growth. A proactive referral strategy allows you to attract the right clients consistently.
Create a profile of your ideal clients by considering their industry, size, needs, and challenges. This will help guide your referral efforts effectively.
Provide clear guidelines on the types of clients you want to attract, along with landing pages that outline your services and ideal client profiles. This empowers partners to refer suitable clients.
You can recognize referrals through thank-you notes, public acknowledgment, or small gifts. Monetary incentives can be motivating, but they are not required.
Look for strategic partnerships with complementary businesses, such as bankers or financial advisors, who share a similar client base. These relationships can lead to valuable referrals.
Consistently follow up with clients and partners through newsletters or updates, and regularly measure your results to adjust your strategy as needed.