What is a Referral Marketing Strategy?

referral marketingA Referral Marketing Strategy can be defined as the practice of building a base of customers or clients by obtaining support from specific sources. In simpler terms, this strategy is a way for business owners to get existing customers and friends to promote their business for them.

Not Just a Strategy

The strategy is the systematic cultivation of word-of-mouth business. The key word in this definition is systematic. A Referral Marketing Strategy is a purposeful set of actions taken toward one end: to get customers from existing customers. So, in order to build a solid word-of-mouth business that generates good referrals, a strategic business owner must first implement a solid word-of-mouth system. How does a business owner begin to form and implement a Referral Marketing System? Let me recommend two great resources: books and/or a business coach. Two books serve as great resources to help a strategic business owner build a Referral Marketing Strategy. One of these books is Duct Tape Marketing, by John Jantsch. In it, Jantsch defines Referral Marketing as a specific set of strategies and tools that are designed to bring your business three things: new clients, qualified leads, and repeat business. He goes on to say that you may or may not need the aid of other advertising methods. In addition to Jantsch’s book, I also highly recommend a second resource, Business By Referral by Dr. Ivan Misner. Tweet This

Coaching Can Help

A good business coach is another resource for establishing your strategy. A business coach can assist you as a business owner in creating a dynamic Referral Marketing Strategy that will help you and your business thrive even in a slow economy. Almost every small business needs a Referral Marketing Strategy to survive and grow, especially in the economy today. Begin today to tap into the resources that will leverage your existing customers or clients to gain more business!

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