The Power of Referrals: Leveraging Your Network to Grow Your Client Base

Are you utilizing referrals in your growth and lead generation strategies? If not, you’re missing out on a huge opportunity to grow your business with clients who love you.

Out of the top five popular ways to recommend a business, word-of-mouth is first, followed by Facebook, Google, and Twitter, according to SEMrush. Most marketers agree that word-of-mouth is the most effective form of marketing. It’s a marketing strategy worth spending time and money on.

Effectively leverage your network to gain qualified leads by using the suggestions in this article. We’ll go over why you should work for referrals, how to get referrals from your network, and creating a referral strategy.

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Why Referrals?

As a business owner, I understand the grind it takes to prospect and bring in new business. There is no better feeling than when one of my clients, or someone in my network, sends me a referral. Not only does it relieve the pressure to constantly produce quality leads and opportunities, but it also strengthens our bond with our clients. We create a mutually beneficial friendship that goes beyond business supporting each other’s growth and success.

We also love referrals because they come from people we trust. Remember the know, like, and trust factor? Referrals get a huge head start in the process. First, they have a better impression of you because someone they know and trust recommended you. A connection is already established without even meeting. You have a mutual friend you respect, and they believe you two will work well together. It’s a win-win for everyone involved.

“All things being equal, people do business with and refer business to people they know, like and trust.”

-Bob Burg, Networking and Referral Expert

Make a List of Ideal Clients

You first need to understand the type of clients you want to work with. Think of your dream client. What industry are they in? What work are you doing for them? Get specific on details of organizations you’d love to work with.

Brainstorm things that fit your ideal customer profile:

• Industry
• Size
• Annual Revenue
• Specific attributes and values of the leadership and company
• Services you want to provide (one-time project vs. recurring monthly services)
• Company goals and/or challenges

These attributes will give you a buyer persona of your ideal client. When you have a list ready to go, you can accurately describe the type of client you’re looking for to your clients and network. You can even narrow it down to specific companies you’d like to work with. The goal is to understand your ideal client, so you can ask your network to keep an eye and ear out for opportunities for you.

Create a Referral Strategy

To make the most of asking for referrals, create a referral strategy. More goes into it than just asking your network for referrals.

When to Ask

You never want to ask for referrals too early from a client. They haven’t worked with you long enough to trust you yet or understand the type of clients you’re looking to work with. We recommend asking current clients for referrals after working with them for at least six months. Ideally, it would be when you’re comfortable with one another and trust them to send quality referrals your way.

Link it Back to Your Network

You need a way to link inquiries to someone in your network. An easy way is to add a field in your contact form asking if anyone referred them to you. That way, you can give credit to the person in your network who referred you.

You may want to create a separate landing page for your network to send referrals. Oftentimes, if there isn’t an easy place to send referrals, your network will share your email or website. While we aren’t complaining about getting referrals in any way possible, it would be convenient for you, your client, and the referral to have one place to learn about your company and what you offer.

The page can be specific to referrals, too. Instead of a referral searching through your vast website, they have a one-stop shop for everything they need to know about you. You could also have a specific contact form on that page. If you are using a platform like HubSpot, it would automatically indicate they are a referral (since they submitted that specific form).

Rewards Program

A rewards program is a great way to thank people in your network who sent you referrals. It’s an unexpected way to show your appreciation. You can decide how large the gift will be, depending on the scope of the referral, but here are a few ideas:

• Gift card
• Gift basket
• Free hour of consulting or discount on services for a specific amount of time
• Flower delivery
• Food or treat delivery

We recommend only sending a gift when the referral signs on as a client. Although, a thank you note would still be nice to send for every referral sent to you!

Return the Favor

Don’t forget to return the favor and recommend your clients to your network when the opportunity presents itself. This will strengthen your relationship with your current clients and open the door for future partnership opportunities.

Include Your Personal Network

A referral strategy doesn’t solely apply to clients. You can use it in your personal network, too! There’s a great chance a friend or family member knows people in need of your services. Ask around and see what opportunities are available to you. You never know the connections someone has!

Ready to Collect Referrals From Your Network?

In general, people love supporting others. They just don’t think about it unless specifically asked. Make it known you are looking for more opportunities, and your network will come through for you. Ready to get started? Rutkin Marketing is standing by and ready to partner with you to create a referral strategy.

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