What is Referral Lead Generation?

Referrals aren't generated, they just happen, right?because it requires repeated message saturation to
While many businesses believe this, it is a commonachieve optimal results or client conversion.Today,
marketing myth. Most businesses assume thathigher advertising costs, increased competition, an
referrals just happen by chance when someone tellsoverly-saturated consumer marketplace, and lower
another person about their experience with theROI are making business owners and marketers alike
products or services they've received. Whiletake a second look at referral marketing as an
word-of-mouth has always been an obscure conceptalternative to standard advertising methods that just
and certainly unpredictable, new Internet technologiesdon't seem to bring in the results they used to. Which
are making it easier than ever to nudge along andsounds better, a cold lead or a warm referral?
follow its momentum. The Difference BetweenWhen statistics show that up to 45% of most
Referrals and Word-of-MouthBefore you begin abusinesses are chosen based on the
word-of-mouth or referral advertising campaign, yourecommendations of others, why do businesses and
should understand the difference between the two.marketers still continue to throw their hard earned
While referrals and word-of-mouth (WOM) can bothmarketing dollars at a cold market?The Internet offers
help to promote business, referrals go further, allowinghope through interactivity, affordability and accessibility.
customers to actually participate in the sales process.New technological resources are readily available to
This participation may include a face-to-face, telephoneus, to help support referral generating efforts and
or email introduction. And although a referral beginsmake it easier to spread word of mouth. Unlike rising
with word-of-mouth, word-of-mouth does not alwaysgas prices, we can actually fight back against rising ad
generate a referral.Successful referral lead generationcost by using the Internet to improve customer
starts when a marketer or business owner adopts aretention and facilitate in the referral generating
new mindset about referrals, recognizing the salesprocess. Satisfied customer advocates are our best
potential available through a warm market. A warmselling asset and they're also the best defense against
market includes those customers, vendors or otherrising advertising costs. Some ways in which
businesses that have worked with you in the past ortechnology can be used to grow referrals and save
have purchased your products or services, and had aad spend:· Permission Based Emails - a vehicle to
good experience. Utilizing this warm market, plus"get the word out"
integrating some kind of a customer relations referral· Refer a Friend links - makes it easier to
system, promotes successful lead generation andforward information to others
keeps your business on track. Cold Leads or Warm· e-Newsletters - simple and low cost way to
Referrals?Many businesses are just too busy pursuingstay top of mind
customers to take time and learn how to get· Audio and Video Testimonials - increases
customers to pursue them. They say people changecredibility and trust
for one of two reasons; pleasure or pain. Unless the· Electronic gift cards - low cost, efficient way to
pain is painful enough, many businesses would rathersend and track rewards
continue pumping money into ineffective advertising· Affiliate Web Links - added exposure with
outlets or purchasing leads from brokers.This isreciprocal referral partnershipsDiana D'Itri is the Exec
especially true for certain industries like the mortgageVP of Ravebiz, a leading referral marketing and
industry where lead purchasing is a mainstay. A coldtechnology company. She's a key driving force behind
lead is an individual or contact that is not familiar witheducating clients on how to generate more quality
your business, and has never purchased your productsreferred customers through practical applications and
or services before. These leads demand the longestan automated, web based system called the Rave
buying process and reaching them is challengingAPG eReferral.