In-Person Marketing: Referral Marketing
Last Wednesday, I wrote about networking and how to arrange one-to-one meetings with relevant people. These meetings are opportunities for referral marketing and that is my topic today.
What is a one-to-one meeting?
Usually, you arrange a one-to-one to get to know someone who you have not met before. You want to tell them about your business or cause and usually they will want to tell you about theirs.
So, here are some common reasons for a one-to-one:
- People often make the mistake of believing they are selling to the person sitting across from them. What you actually need to do is to describe your business (what you offer) and your market (who it is for). The other person may know one or more people who may be interested in your offer. This is basic referral marketing.
- Sharing about your business to explore possible collaboration. You may be notional competitors although usually, if your offers are close, there is room for collaboration. For small businesses, there’s usually more than enough work to share around. A good referral of a prospect to another business with a better fit, can have a several advantages.
- A marketing or enrolment conversation is where you explore your prospect’s needs and either help them find a business that fits their needs or make them an offer. This is usually an opportunity for them to talk. You will share information about your business only if you make an offer.
- You have something to sell and they are a prospect. This is a common reason for a one-to-one and is fine so long as the prospect knows they are a prospect when you arrange the meeting. Sometimes however someone who is not a prospect may ask for your service during a one-to-one. Be ready for this even though you do not expect it to happen every time.
Referral Marketing Reaches Further than the People in the Room
Referral marketing happens when you meet to exchange information about your businesses. It is where you learn about someone else’s business because you might have contacts you can refer to them. Similarly they learn about your business and may have contacts they can refer to you.
Realistically, your one-to-one is the start of a relationship and this is why a lot of referral marketing takes place in the context of a business breakfast or lunch. This means participants can build relationships over time. It can take a while for people to understand your business and who your market is likely to be.
It is easy to forget they need to know both what you offer and who it is for.
Don’t assume the other person understands referral marketing. One common problem is people look only at the people in the room. They do not consider the possibility that people in the room know many other people. They very likely do know people who would be interested in your offer; it’s just that sometimes it takes a while for the penny to drop.
If they do refer you to someone, do not forget to ask for credentials. Can you mention who referred you to them? Sometimes they will arrange an introduction for you.
Making Referrals
If you are part of a group of people committed to referral marketing, you will find when you have sales conversations, sometimes it is right to refer the prospect onto another business. It is as if in one conversation the prospect is talking to several businesses.
It is always helpful to make a good referral. The prospect will be grateful, assuming it is a good referral, and so will the person to whom you make the referral.
Remember that whilst they are not likely to be a prospect, you can ask them if they know anyone who is. Occasionally, you may find someone interested in your offer, at which point you can arrange another meeting or switch into your marketing conversation.
I never turn down an offer of a one-to-one because I know this is the way I can spread the word about my business as well as maybe find another business to which I can make referrals. I am often turned down by businesses when I ask for a one-to-one. There are lots of reasons why this happens. It is common that they look at what I am doing and decide my business is not compatible with theirs. Several times I have been turned down by people who initially say yes. Usually, I have something in mind that might benefit them. If I don’t share it, normally it will be because the conversation take us to a new place and I think of something even better. This is what referral marketers do, they link people to useful contacts.
Use E-Mail to Follow Up
One thing I have started to do is a follow-up email. This allows me to
- thank the contact for the meeting
- remind them of any suggestions I made, provide contact details and suggest anything else I’ve thought of in the meantime
- respond to any suggestions they made, sometimes they offer to send more information and a reminder can be helpful
- assure them they are on my database
- encourage them to sign up to my email list, if they have not already done so
Very few people are this organised, I find. But I want to take this aspect of my work seriously because to me it is a developmental role. It is very hard work, finding prospects and the more people who are looking out for your business, the easier it becomes. It also takes time. You need to work out how to market your offer. Understanding what people need to know to find prospects for you takes time to work out.
Have you examples of times when referral marketing has worked for you? What practices have you found effective?