DesignBiz Rx Weblog

Lessons in Referral Marketing

21 April 2008

I mentioned Duct Tape Marketing in the DBRx Atlanta session and John Jantsch, the who runs the site is a firm believer in the power of referrals. “Few business harness the true power of referrals by making a systematic referral plan a cornerstone of their marketing efforts,” he writes.

Referrals work because they are credible and, in addition, the people referred to you tend to spend more money. “Research has proven this beyond a shadow of a doubt,” he adds “and it’s likely because people tend to refer others who are highly qualified and not just tire kickers or price shoppers.”

And a recent piece by Paul S. Brown at the New York Times online brought two other referral gurus to my attention. Denise O’Berry at targetreferrals.com emphasizes the difference between a lead and a referral. A lead “is just one step up from a cold call,” she writes while a referral is a “warm contact.” Check out the link for much more detail.

And finally, Gary Lockwood writes on the ICBS website that one of the biggest steps small business owners miss in the referral process is helping your referral sources help you by being clear about the clients you’re looking for and explaining in the detail how you can be of service to them. And, while you’re at it, take the time to define the types of clients you don’t want. It makes the whole process easier for everyone.

Entry Filed under: Client Relations,Marketing. Tags: Client Relations, Marketing.