3/4 Of All Business Comes From Referral Marketing!
That's an astonishing statistic ...
Posted on: 08/07/2015 By: Jacky Sherman
The one business we are all in is marketing, right? Without attracting new customers and clients we don't have a business. So how do you decide where to put your marketing investment in money and time?
Hooray! Quite clearly, Referral Marketing is the way to go!
It might be worth being a bit more cynical and digging a bit deeper though. Let's take this information to pieces a bit and ask a few questions.
Who collected this data, from whom and why? What questions did they ask to get the answers? I am going to be quite clear with you, I don't have all the answers to that but I do have some.
Now, if I told you that I got the data from a survey in 2012 of freelance workers in the USA and it was published by Ed Gandia and it was a self-assessment of workers saying where their work came from, does that help you or make you want to ask more questions?
So do these figures stack up for any business? No, they only apply to freelance workers. Who are these freelancers? I have no idea, but I'm guessing they are people like graphic designers, wordsmiths, translators, PR, illustrators, software developers and events organisers. If that's not your type of business then you can gain little from using these figures.
You need to know that I have manipulated the data. I lumped together several categories from the original published graph into the five headings, adding in my assumptions of what was included in each category.
Why did I do that? Well, many of you will guess that I have a vested interest in demonstrating that Referral Marketing is the best way to market your business. Actually my agenda in writing this blog post is to attract clients who will really get the best results from referral marketing because those are the people I want to work with.
So I'm interested in pointing out to you that 25.7% of respondents got their business from other types of marketing. How come that worked for them and not the others? I don't know, but I suspect one of the reasons is what type of activities they like to engage in.
We tend to do well at the things we like doing. Firstly, we're motivated to do it rather than put it off for another day. Secondly, we tend to like the things we are good at so it's easier and we're likely to get a better result.
This is known as the 'virtuous circle of success'. For instance, I know people who are very successful in acquiring clients without a website and rely completely on their networking skills (my husband is one). I also know people who get all their work from their website and others who rely totally on telemarketing.
So my tip for you today is to suggest that you throw away any generic statistics you have on different types of marketing and do your own research!
Do you know the full range of activities you can engage in to market your business? Check it out.
Which ones are things you enjoy doing? I love meeting people and belonging to a community where we share and help each other, so no wonder I enjoy referral marketing so much.
Which are the things you really dislike doing? I absolutely hate cold calling. I don't respond well to others who cold call me and I loathe the process of trying to persuade someone I don't know to talk to me on the phone. Yes, I have done it and would rather pull out my toenails than do it again.
Which are the things you can or cannot delegate to others? You may not want to be the marketer for your company at all. On the other hand, if you're a small company or providing a personal service, then referral marketing is something you need to engage in yourself. Your referral sources are referring you personally to their contacts. Hiring someone to go networking for you just won't cut the mustard.
How did you acquire your present clients? And in particular your best clients? Whatever the route those people came to be working with you, the one thing you know for sure is that it works for you! So why not become even more skilled in that type of marketing?
What isn't working for you? Now, before you throw that out as a waste of time and money check out you are doing it properly. All marketing techniques have subtleties that if missed, or applied inappropriately, can stop you achieving the results you want. Talk with someone who IS successful in that type of activity.
So, back to my own agenda. Who are the people who will get most success from referral marketing? They need to be people who collaborate rather than compete. Are generous in giving and humble in accepting help.
They get out of the office and meet people whenever they can, are genuinely interested in what others have to say, share with others the passion they feel for their business and share their knowledge and experiences. They are willing to learn from others, are patient and invest time in building long term relationships.
These people get fulfilment from others' successes as well as their own!
If this sounds like you (or mostly you) and you are frustrated with the results of your networking or marketing, then why not meet up with me for a coffee and an informal chat about how I can help you?
Call me on 07970 638857 and let's explore where the potential gaps are in your knowledge and skills that prevent you from acquiring the level of customers you want, in the way that you want them introduced to you.
Until next time ...
More about Jacky Sherman ...
I help people build and maintain productive working relationships both with their work colleagues and with a wider network to win more business. I do this by combining my skills in coaching, mediation and training with my extensive experience in senior management.
What I love most about my work is when my clients get those a-ha moments because I know they have seen for themselves the way that they want to move forward. Then they will achieve their ambitions.
Helping people who are having challenges with their working relationships gives me enormous pleasure. It was my privilege when working in health care to see how people working together can make the impossible seem easy and accomplish miracles as a result.
So helping people build or restore strong relationship with their colleagues makes even the hardest work easier, alleviates distress for the individual and reduces problems for the whole organisation.
In all this work trust is an essential ingredient to winning business so most of my work comes through referrals. Referrals come through strong business relationships so it was a natural extension for me to train others in how to get consistent and predictable referrals from their network.
What a fantastic way to earn a living!
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