Karen Purves

Growing with Referrals

Posted on 10 March 2010 | No responses

I asked the MD of a Building company who wants to double his turnover to £3m pa how he was going to do that. And, with confidence he replied through recommendations.

I hear this a lot when speaking to business owners, the holy grail of gaining sales with no effort. Don’t get me wrong, it is possible to have business only through referrals. But, and there is a but…

Not all referrals are equal and not all past customers refer at the same rate or with the same calibre of prospect. So, there is a requirement for a system to be in place monitoring this and rewarding those who bring you more business. After all, how much would you have a pay a salesperson to bring in the same business?

Depending upon how your enquiries arrive, the simplest way is to ask the person where they heard about you.

On the internet, the first time you may know of the referral is when they purchase, so make sure you have a field where they can add the name of the referee.

On the phone, you can have a standard form either directly into your CRM system, which could just as easily be a spreadsheet as well as an off the shelf package. Add a field to collect this information making sure you specify how to store client referrals.

The key is to collect the information so that you are able to search the database for the top referees. It is those referees who are effectively doing the job of a salesperson and you can acknowledge your appreciation.

Appreciate your Referees

Appreciation can be shown in a number of ways from simply sending a handwritten note to giving them something that demonstrates your gratitude. For this, contact colleagues, spouse or others to find out what the referring client would really appreciate. This may be a trip to the opera, weekend away or a fabulous meal in a 5 star restaurant. Rewarding your top referees in this way, shows you appreciate their thoughts and efforts. This will result in them continuing their current behaviour.

Level of Appreciation

You may be thinking “how do I decide on the level of gift?” Consider the following:

1. How much business they have brought to you
2. What impact has it had on your business? This may be additional staff, keeping current staff, updating vehicles, computer systems etc
3. How much would it have cost with a salesperson or using another marketing method?

The answers will give you the level of appreciation award.

Reactivate Past Referees

Now, if you find that most clients only refer once or twice and stop. Then this is an opportunity to review and change. First, contact a few referees, reconnect with them and ask them about any referrals they may have. This opens up the conversation to explore what is happening and whether showing appreciation would be helpful. Remember to “read between the lines” with these responses.

Referrals happening as a result of feeling good about the service and/or experience received. Reciprocity, if once there, can be reactivated and maintained.

Next Steps

Follow this guidance and you will be increasing the volume of business arriving effortlessly

Tell me what proportion of your business comes through referrals and how you track your primary referees.

Which Social Networking Site is best?

Posted on 9 February 2010 | 3 responses

People ask me this question all the time as if there is a magic bullet that once found, will shower the recipient with riches. And, I will burst that bubble by saying there is no magic bullet.

Really, as with all marketing, which platform is best for what you want to achieve.

There is having connections with people on all the sites and that is great to keep in touch but it may not have anything to do with marketing.

I know alot of professional service firms pooh-pooh Facebook and that leaves a great opportunity for the firms who don’t. Facebook Fan Pages will grow in importance as people learn how they are to use them.

Linkedin is a great site for business to business (but not exclusively so) but it does depend on how you use it. Again, goes back to what your goals are. Setting up groups and participating in groups are great ways of gaining credibility and extending your market. But, you need to have something else to follow on too.

What is at your website to capture interest further?

How are you going to convert interest into a client?

How are you going to do that as well as servicing clients?

Great questions that need answers otherwise your ROI will be poor.

If you are using Linkedin as if you would personal networking, then you may be missing opportunities. I have a guide on how to use linkedin here

The fundamental difference between face to face networking and online networking is the scale. Face to face tends to be 1 to 1 and sometimes 1 to many. While, online networking is many to many… that’s new and it means that if you change your approach, your returns will also increase.

With regards to Twitter, it is an interesting tool. And, I think you have think what you want to achieve. Also, is your market on twitter? With twitter, a tweet life expectancy is around 10 minutes. So, if your market isn’t consuming in real time there is less chance that your efforts will be received. Sure, there are tools that collect tweets from people you are particularly interested in but that won’t be for lots of people.

Again, I think you can use twitter in a tactical way to have lots of comments on an event, topic etc.

On a personal note, I like sites where I am able to explore concepts, engage with others in that exploration and make new connections. Connections aren’t always prospects but they are always interesting. Taking that perspective further, it’s about how to create win:win outcomes…

How do you use the different social networking sites?

All that Twitters is not Gold

Posted on 4 February 2010 | No responses

There’s so much about now on Twitter that it seems to have spawned a whole industry.

How to post advice – There’s tweetiquette, the latest post by Lisa Barone offers a concise list that’s practical and full of common sense.

Business Building Advice -  There are marketing consultants saying that you have to build a huge following to be effective on Twitter.

There are those that say you have to be consistent and tweet so many times a day.

Now, really, twitter is done when you have time to do it. If you are permanently on twitter then perhaps you could do with looking at how you manage your time and whether twitter is bringing in the business.

A Personal View

I’ve been using Twitter since July 2008, and that seems an age in social media terms.

I’ve had business from it.

But, the most important thing is that I have connected with people who I may never of otherwise. I’ve connected with people on Twitter who are also friends on other sites. And, because of that, I don’t forward my twitter stream to other sites, the reason being that people want to know about what I tweet about.

And if it was the same as in Facebook, Linkedin or other forums, they wouldn’t bother.

Twitter is just one aspect of your marketing and just how important it is depends upon whether your market is on twitter and that they buy.

Tell me how you experience Twitter because there are as many ways as there are people!

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