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