Stop Qualifying Your Marketing Dollars Out the Door!
“A trusted referral is the holy grail of advertising.” – Mark Zuckerberg
Losing the holy grail of referral opportunities is a big problem for many companies.
Customer: “Do you guys do any electrical stuff?”
CSR: “Not currently, no. Sorry, wish I could help you!”
Customer: “All good, thanks anyway!”
And that’s the end of it. Not good.
For situations like this, you need a referral partner to send that referral to.
Because every time you send a referral to a good referral partner, you gracefully hurtle your chances of getting referrals into hyperdrive.
Missing this opportunity can be remedied in 3 steps.
Step 1: GET Your Referral Partners
Look for companies who specialize in the niche you’re referring and do not perform the services you provide.
- Roofers only.
- Plumbing only.
- HVAC only.
- Pools only.
- Appliances only.
- You get the picture.
Call them up. Get to know them a little.
Drop them if you need to.
Keep them if they’re good.
Step 2: ASK For Referrals in Return
Some people tiptoe around the subject and end up treating the referral conversation as more of an unspoken agreement than anything. That, my friend, is rock-dumb.
The ask triggers the receive — always, always ask for referrals in return.
If you don’t, they’ll hand off those referrals to someone else, who happened to clearly communicate that they expect a two-way relationship.
Let me put it this way.
Your marketing spend is herding these prospective customers to your company. And you need to maximize those dollars.
So what do you do?
You treat it like any other marketing strategy.
Track it. Measure it. Capitalize.
Figure out how many calls your referrals are sending, and do your best to know how many you’re sending them. If one of your referral partners is slacking, cut them off and find a better one. But getting new referrals is just one opportunity. The next set of opportunities can be a even more profitable, but they’re only doable if you follow through.
Which brings us to…
Step 3: For the Love of All That is Green $ Paper-Like, Follow-Through!
You need to call them and set expectations. That’s good. But you also need to follow through.
Every relationship requires upkeep, and referral partners are no exception. Call in from time to time. Ask if they’re getting any good leads. Ask them how the referrals you’re sending are working out for them. Let them know how their referrals are doing. Say thank you. Etc.
Another thing to keep your eye out for is the crop of ripe opportunities that present themselves as a result of your tracking.
Now here’s where it can get really profitable.
If you’re sending a steady stream of valuable referrals to one of your partners, consider starting that division.
Again, your marketing dollars are bringing these calls in, and that’s the hard part. If the calls are a steady stream, then your marketing dollars are working and you can turn up the gas and start a plumbing/hvac/electrical division yourself.
Where people go wrong is qualifying away anything and everything that isn’t exactly what they do and they have no idea what potential is out there because they have nothing to track.
And again, if the volume doesn’t justify launching a new division, make sure you’re getting referrals back for your efforts. That’ll keep your efforts in the win-win sort of territory that you should never fall out of.
Let’s wrap it up.
Remember, building a strong referral system makes your $$ go a LOT farther. It transforms dead-end calls into a regular flow of cash into your company.
Getting by giving — it’s a simple version of the law of reciprocity.
Again, never brush off referral opportunities, because they’re basically a treasure chest with just a couple shovels of dirt on top. The amount of work it takes to dig up this fresh source of revenue is nothing compared to the reward.
So keep it simple and just do it already:
-Consider why they’re reaching out you.
-Measure how many referrals you’re getting and giving.
-Evaluate the referral partners you’re sending them to, and whether or not you should be taking those customers for yourself by starting that division.
Whatever your move, make it a win-win at all costs.
If you don’t, you’re stifling future growth.
But if and when you do it right, the cost of time and effort will be ridiculously low, and you’ll have capitalized on a high-yield crop of new revenue.