Invest Time and Money in This Powerful Marketing Strategy

Business handshake - making a deal over a blue background In the previous post we talked about prioritizing your current customers as a marketing strategy. Today, we're looking at another powerful marketing strategy: developing your referral sources. Leads generated through referrals are typically the best prospects a business can receive. They are also typically the least expensive. However, my experience is that most business owners are not very intentional about leveraging this incredible opportunity. How can a business owner intentionally leverage referrals and turn them into leads?

Trust is Powerful

First, you must understand that all people prefer to buy from others they know, like, and trust. So in order to have a real opportunity to make a sale, you have to first overcome the buyer’s skepticism – you have to achieve a certain level of trust. With that understanding, you can grasp the value of a good referral: It allows you to begin the process with a certain level of trust already built in. Building that trust is difficult if you’re a stranger, but a referral allows you to fast-forward the trust-building process.

It Takes Commitment

Now that you grasp the value of a referral, you’re ready to take action to turn it into lead. However, the action you take will differ than with a stranger. While referral marketing typically has a low hard-dollar cost, it does take time and mental energy. This requires a commitment from you! Wise business owners who grasp the value of referrals will implement specific tools and tactics that are designed to generate an increasing number of warm, interested prospects through their satisfied customers and strategic partners. They will literally create a referral “system” that enhances and leverages word-of-mouth marketing. As a Houston business coach, I help local entrepreneurs design and implement referral marketing systems. And as they do, they see substantial growth. How will you use this strategy to leverage referrals for real leads?

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