Generating new leads from industry peers is crucial to staying in business. So, how can an executive team begin to build a referral marketing program that benefits every stakeholder involved?
It has much to do with a brand's visibility, reputation and bandwidth to deliver on customer satisfaction rates. But, it also starts by nurturing relationships and focusing on engaging industry colleagues who are open to giving just as much as they receive.
Below, nine experts from Forbes Business Development Council explain additional questions leaders should consider when creating a referral marketing system that will pay off.
Forbes Business Development Council members share their insights.
Photos courtesy of individual members.1. Is the referral system easy to understand?
You may try to upsell a product or service but make sure to never overstep or misrepresent. Ensure that the referral system is easy to understand in order for individuals to use it to refer others. Build customer relationships by engaging the clients' experiences through brand awareness. Use incentives and rewards to appeal to your clients, but don’t limit the incentive on the offers. - Dr. Edward Burns Jr, Advantage One Brokers
2. Do the partnership motives align?
The referral marketing system leverages the art of networking, and the art of networking is underpinned by trust and connection. The most important questions to consider are: "Do I align with the product, service, offer, person or brand I'm referring to others? Am I motivated by financial gain or will this referral genuinely help, improve, enhance or benefit the person or business?" - Angelica Kopec, She Knows Business
3. Have service roles been divided and delegated?
The most important step is to divide the service into the proper stages—for example, after-sales, first contact and more. Then divide the roles carefully to delegate and execute them. Only this will guarantee top-notch service to each customer, which is crucial because, in a referral marketing system, any dissatisfaction with a new customer impacts the credibility of both the service provider and the referring company. - Anna Jankowska, RTB House
Forbes Business Development Council is an invitation-only community for sales and biz dev executives. Do I qualify?
4. How strong is the network?
Building and maintaining relationships is the key to generating new business. Once you establish that connection and gain trust, your internal referral network launches forward. Delivering a product or service that your client truly needs, providing white-glove service and transparency throughout the process, sets you up for a foundation of success. - Christina Ramirez, Specialist TeleMed
5. Are you focused on the quantity or quality of referrals?
Two things to consider when creating a referral marketing system are the outputs you want and the partners you choose. If you value quantity over quality, you will find yourself with an ineffective system and no tangible outputs. Some partners are consultants that can refer you to deals, some sell end-to-end solutions and others can install and provide services. So, it's important to define your needs upfront. - Jennifer Haas, Knock CRM
6. Is there open communication?
A referral marketing system is useless if your consumers aren't really involved. It's crucial to build relationships with your customers and your brand before launching a program. Communication is essential in all successful relationships, so spend some time conversing with your clients. Pay attention to them and offer real feedback. Think of clients as a direct connection to market research. - Birender Saini, PruTech Solutions
7. What type of incentives do you offer?
Make sure the referrer gets something out of the deal. The most successful referral programs that I've managed used these incentives: pay a generous commission on the sale, give out Amazon gift cards or offer them a discount on company products. Businesses can also provide non-cash incentives. Mailing them a handwritten thank you letter will make your referrers feel valued and want to send you even more referrals. - Bryce Welker, Crush The Financial Analyst Exam
8. Are you responding to feedback?
The most important thing people forget to include in their referral marketing system is making sure they are building a relationship between themselves, their brand and clients. People can't connect with a product or service, but they can connect with a person. You and your team should stay active in responding to customer care questions and listening to feedback. Referrals and relationships go hand in hand. - Josh Snow, Snow
9. Is the referral system balanced or uneven?
There is disproportionate reciprocity in referral marketing. This sounds a little oxymoronic, but let me explain. There has to be reciprocity in any dynamic for referrals—giving back to them as they give to you. But, if this is somehow disproportionate and you are referring out more than you receive, at least initially, it will come back to you 10 times greater. It is more valuable to give generously. - Arjun Dhingra, All Western Mortgage
