Leads vs. Referrals (Quantity vs. Quality)

Posted on March 20, 2011 by admin in Referral Marketing

When it comes to finding new clients, just about everyone who has spent much time in sales knows all too well how big of a difference there is between a well-qualified referral and a lead that is not worth the paper that it is printed on. This is one of the key reasons why it is so important to train your established client base how to identify opportunities to promote your business instead and the proper methods for encouraging their associates to find out how you can help them meet their goals. Let’s take a quick look at the major difference between your typical sales lead and a solid referral.

Sales leads are the very lifeblood of many types of businesses and are the primary purpose of nearly all marketing campaigns. Most businesses obtain their sales leads from a wide variety of sources, such as advertising, customer inquiries and targeted sales lists. While standard leads eventually provide a business with a reasonable volume of new clients, salespeople often find that the leads that they obtain from many types of marketing campaigns are so unqualified that they are barely more effective than cold calling. The truth of the matter is that a mountain sales leads is not a whole lot if it is for people who do not need your services and do not know who you are.

Although a referral can technically be considered a type of a sales lead, there are a few special things about referrals that make them particularly valuable. When one of your current clients refers one of his colleagues to your business, he is essentially vouching for both you and your services. This means that the leads that you receive as business referrals are guaranteed to be much more willing to give your services a try, resulting in very high closing ratio. At the same time, you will find that new clients will be constantly be streaming in once you have put a good referral engine into place, which means that you will be able to spend less time on the phone generating sales and more time focusing on your actual services.

Yes, you will probably always rely to some extent on traditional methods like advertising and other marketing campaigns for a significant percentage of your business, but you will be much better off by viewing business referrals as the cream of the crop. By making referral development the central focus of your marketing efforts, you will be building the foundation for a reliable source on potential new clients for many years to come.

This article is a brief abstract from a core learning module included in a Marketing Jump Start program provided to our association and Power Practice Network members. As a member, you will gain access to our four key courses and Success Tools Pro, which provides a constant update of tools and resources for building your practice.

Social Media Marketing Essentials

Posted on March 20, 2011 by admin in Referral Marketing

While most leaders in the professional service industries continue rely on traditional methods of marketing, a growing number of entrepreneurs have begun harnessing the power of social media to establish themselves as a niche authority figure within their chosen profession. These pioneers have developed powerful referral engines for themselves in the process, while their skeptical competitors sit on the sidelines and miss out on major opportunities for substantial growth.

Of course, time-proven promotional campaigns will continue to dominate the marketing strategies of most professional service veterans throughout the foreseeable future. However, more and more businesses have begun taking advantage of social media platforms that deepen the impact of existing marketing efforts by strengthening their professional network. These services also allow users to keep their finger on the pulse of their profession by providing them with updates on relevant breaking news and promising business opportunities as they develop.

Many medium to large-sized businesses remain apprehensive about social media because they do not want to risk losing control over their brand image. News headlines concerning employees who have posted confidential or compromising information on Facebook and Twitter have raised a number of concerns in the minds of legal and medical professionals in particular. Disasters like these can be devastating from both a professional and a financial standpoint, but such complications can be averted by putting a system of best practices into place that compels team members to use social media responsibly.

From blogs devoted to untapped niches to Twitter streams providing informative links and comments, those who have implemented an effective social media marketing strategy have found these new platforms to be tremendously powerful. The most successful campaigns have included the following three principles in their marketing strategy:

• Developing a professional niche
• Building a personal connection with your audience
• Leveraging your core network to generate high quality referrals

This article is a brief abstract from a core learning module included in a Marketing Jump Start program provided to our association and Power Practice Network members. As a member, you will gain access to our four key courses and Success Tools Pro, which provides a constant update of tools and resources for building your practice.

What is Referral Marketing?

Posted on March 20, 2011 by admin in Referral Marketing

Successful referral marketing requires casting a wide net (Image by Ozgurmulazimoglu)

In a nutshell, referral marketing is the process of developing a reliable network of well established clients who are actively engaging their colleagues, coworkers and friends about the products or services that you have to offer. In the modern marketplace, people are distrustful of traditional advertising because they are keenly aware that a business will do whatever it takes to attract new clients. When they hear about something that they can use from someone they trust, on the other hand, they will extend that credibility to that product or service. Once you have established a solid foundation of satisfied clients that have been educated how to promote your brand, you will have a steady stream of qualified referrals coming in for potential clients who are genuinely interested in doing business with you.

Effective referral marketing begins with two basic components, providing a product or service that people actually like and managing the expectation for referrals. While most businesspeople have an intuitive understanding of the importance of providing a top-notch product, all too many professionals drop the ball when it comes to actively engaging their clients on the topic of referrals. If you are genuinely interested in increasing both the quantity and the quality of the sales leads that come into your business, then the time is now to learn how to start building a referral engine of your own by using a network of existing clients who already know how great you really are.

If you are resistant to the idea of asking your clients to provide you with referrals out of a question of good taste, it is time to reexamine your thinking about the process of referral development. When clients refers one of their colleagues or associates to what you have to offer, they are doing so because they truly believe that your product or service can help someone else reach a particular goal. People enjoy talking about businesses that they have discovered that have provided them with solutions, improved their lives or saved them a great deal out of money. As a result, you are actually doing your clients a favor when you encourage them to spread the word on a product or service that you know that they love.

This article is a brief abstract from a core learning module included in a Marketing Jump Start program provided to our association and Power Practice Network members. As a member, you will gain access to our four key courses and Success Tools Pro, which provides a constant update of tools and resources for building your practice.

Practice Marketing – Tips for Your Referral Marketing Machine

Posted on October 23, 2009 by admin in Referral Marketing

Its only when you actually set up a business that you realize the value of Practice Marketing. Of all the things you learned at business school or law school or med school, was there even one course that taught you how to generate business? Most likely not. But that doesn’t mean it’s a difficult thing to do.

Opinions can be the most persuasive marketing tool

In the midst of all the hurry to print new brochures and flyers and conceptualize advertising campaigns, you may often fail to notice something right in front of you – your existing client base.

So, to get your present clients to refer you, it is crucial that you provide them with an excellent service. Its only when they are convinced of the quality of your service that they will refer you to their families and friends. After all, when they do so, their reputation is at stake, too. Once they are pleased with your system, the referrals will happen automatically without you having to ask for it.

Visibility is the key

If you’ve established yourself as a respectable service provider, chances are you’re already attracting quite a few referrals. If not, perhaps you ought to look at improving your visibility through some Practice Marketing.

It’s not that your clients don’t want to refer you; it’s just that it may not strike them. So, prompt them to do so. Put up a notice at your office saying referrals are welcome; this simple step could do the trick. It gets people thinking of actively telling their family and colleagues about you.

Scout for people who refer your type of clients, those who target a group similar to yours. Then go get your name in front of them. Talk to them to find out how you could help each other. This, in Practice Marketing parlance, is known as setting up referral partners. Like, if you’re a cardiologist, you’d do well to get in touch with some local internists. Don’t forget to follow up regularly, though.

Host a social event

You could look at hosting some social events in your locality. Sponsor it yourself and make that visible. Or find sponsors if you’re looking at making it more lavish; you could even ask your referral partners to join you – it’ll ensure visibility for them, too.

Get your present clients to invite their group of contacts. This helps you to get to know them all personally and is a terrific way to build your business. If a particular area is your forte, try and invite a few prospects who can help to guide you to your target market. If you’re running a carpentry business, maybe you could look at inviting some reputed builders, painters and interior decorators.

Practice Marketing is an art that doesn’t come easy to everyone. But like most other things, it can be easily learnt. Gone are the times when you let your work speak for itself; you now have to give it the right language to speak in.

delete it, then start blogging!