Agenda Positioning Your Business for Referrals Members as Referral Sources Non-Member Referral Sources Converting Referral Prospects into Members When to Ask for a Referral Best Practices from TAB Community Content for Referral Marketing
The Importance of Referrals In EMyth's 2013 survey of over 1,700 companies, they asked the question: What Marketing Techniques are Highly Effective in Your Business? The number 1 technique, selected by over 77% of respondents, was Referrals. The second closest technique was less than 50%. • According to a large survey done by Rain Today for Professional Services Marketing, Referrals from Colleagues (79%) and Referrals from Other Service Providers (75%) are the number one & two techniques used to raise awareness of a professional services firm and acquire new customers. TAB has gotten 34% of new members from referrals in the past 3 years. This is a good number but can be better.
Additional Findings Fearless Referrals cited a recent study by Sandler Sales Institute regarding how frequently different types of prospecting activities turned into business. 5 percent from cold calls. 15 percent when you use a colleague's name in the call – but your call is not expected. 50 percent when you have permission to call and your call is expected. 80 percent when you are personally introduced to a prospect.
Why a Referral is Better Transferred Trust (from referral source) Short Sales Cycle Less Price Sensitivity Ability to Customize the Offering
According to The Referral Engine: "A referral is the result of a job well done, exceeding a customer's expectations and delivering an experience worth talking about."
The Foundation of a Referable Business Trust: Trust is built through repetition Holding all members Accountable Ensuring that All Members receive a Positive Return on their TAB investment When Things go Wrong with a Member, Make it Right
Avoid Bad Members According to Peter Begin: "Hanging on to poor members is a cancer on a board and you will lose good members in the process"
The Impact of Great Service According to 5 Steps to Unlimited Referrals (by Tom Gay): • "15% of customers will leave due to poor service; but a whopping 68% of customers will leave because of indifference"
According to Bernie Moscovitz: "80% (of my new members this year) came from other members. The new prospects sat in on a TAB Board and then I would see them for a 1/1 and close them. It's the commitment of existing members who believe in TAB enough that they make these referrals willingly and without reward."
Setting Expectations During Sales Process In marketing event meeting, say something like: "I am so confident that you will receive tremendous value from your TAB Board membership that I believe you will regularly refer your colleagues to TAB.”
Tips for Referrals from Members Position referrals as an important tactic to making the board stronger Commit that if a member does not want a referral on their board, you’ll find another board for the referral Set expectations with all boards that prospects will periodically join them as Guest Advisors
Tips for Referrals from Members • Assess your members’ Net Promoter Score annually – those with an 8+ are likely sources of referrals • Approachformer members for referrals – most members leave TAB with a favorable impression
Types of Referral Sources Seek out people of influence with business owners in your territory Ask Yourself: Would you refer your best members/clients to this referral source? Examples include accountants, lawyers, bankers, financial advisors, business brokers, PEOs, consultants and chambers They can also co-sponsor events
Getting Their Attention Call or Email the Following Statement: "I've heard a great deal about your business. You have a very strong reputation for helping small business owners in our community. I am a trusted advisor of business owners in our community as well. I would like to meet with you to learn more your business so that I can refer your business to my clients.”
First Meeting with Referral Source What is your ideal customer? What are your unique benefits? What are trigger phrases that will help me identify a good prospect for you? Once you receive a referral, what is your next step? How do I refer a prospect to you?
Generating Referrals Referral Source must get referrals from you The best way to educate referral sources is for them to attend a Sample Board Meeting Equip your referral sources with a document that describes your ideal member profile & trigger phrases that will indicate they are a good prospect for TAB (see Ideal Member)
Before Meeting with Referral Source Check their LinkedIn Profile to identify any of their connections that you’d like to be introduced to If they do not suggest someone, then propose an introduction to someone from this list Suggested by Bob Marro & Chris Lipper
When to Ask Prospects: When you had a positive RFA with them but they decline to join TAB Members: During board meetings…and when you do something above and beyond New Members: Shortly after they join TAB
Keeping Control If a referral source identifies a referral for you, be sure that you agree to a specific plan to contact the prospect. They may forget to contact them or just send an email. Instead, ask if they'll take it a step further to place a phone call or arrange a meeting with the prospect.
Express Appreciation Be sure that the referred member is treated particularly specially And, be sure to express appreciation to the referral source with your assurance that their referral will be happy they joined TAB
A Great Question When you first meeting with a referred prospect, ask them: "Mary suggested that you consider my services. Why do you think she referred you?” Suggested by Chris Lipper
Other Tactics to Convert Customize the TAB value proposition to the referral’s specific pain point Allow them to experience TAB either as a Guest Advisor or in Sample Board Meeting Offer them a Risk-Free Way to Experience TAB such as Satisfaction Guarantee or Complimentary Coaching Session Allow them to validate TAB with other members
Identifying Referral Sources Blair Koch • With networking events, you get what you pay for. • Spend a bit of money on networking events and as you meet people ask them where else they network so you can expand your sphere. • Get involved in the community in something you believe in – you will meet others who will get to know you and then connect you. • Identify the types of connectors you want and build alliances/partnerships – and network where they network
Coach Referral Sources Bob Marro Bob Marro provides a free hour of coaching to several referral sources in exchange for one prospect introduction per month. He requires that the source attend the introduction meeting with each referred prospect.
Business Assessment Jackie Gernaey Jackie Gernaey gives a free Vantage business assessment to her referral sources. She views this as a marketing expense.
The Importance of Content Good content is important to successful referral marketing The content can educate referral sources Referral sources can distribute your content to prospects Prospects often first want to be educated before they consider a buying decision
TAB Content • Content for 14-part drip email series. Can be triggered directly from SFDC or sent directly to prospects • The TAB blog has dozens of interesting and relevant business articles that can be re-purposed • TAB Member Success Story Case Studies Library • Strategic Planning White Paper • The TAB White Paper toolkit contains dozens of white papers that can be sent to prospects. • The Quarterly TAB Small Business Pulse Survey Results • BOSS Webinar Series recorded webinars. This series contains top notch webinars given by TAB facilitators. The recorded webinars are a great resource to send to prospects. • Tips from the Top archive of business content articles.
For More Info See the TAB Referral Program document, replete with checklists, located on the Facilitator Intranet The Referral Engineby John Jantsch 5 Steps to Unlimited Referralsby Tom Gay.