| Referrals aren't generated, they just happen, right? | | | | because it requires repeated message saturation to |
| While many businesses believe this, it is a common | | | | achieve optimal results or client conversion.Today, |
| marketing myth. Most businesses assume that | | | | higher advertising costs, increased competition, an |
| referrals just happen by chance when someone tells | | | | overly-saturated consumer marketplace, and lower |
| another person about their experience with the | | | | ROI are making business owners and marketers alike |
| products or services they've received. While | | | | take a second look at referral marketing as an |
| word-of-mouth has always been an obscure concept | | | | alternative to standard advertising methods that just |
| and certainly unpredictable, new Internet technologies | | | | don't seem to bring in the results they used to. Which |
| are making it easier than ever to nudge along and | | | | sounds better, a cold lead or a warm referral? |
| 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 campaign, you | | | | recommendations 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 both | | | | marketing dollars at a cold market?The Internet offers |
| help to promote business, referrals go further, allowing | | | | hope 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, telephone | | | | us, to help support referral generating efforts and |
| or email introduction. And although a referral begins | | | | make it easier to spread word of mouth. Unlike rising |
| with word-of-mouth, word-of-mouth does not always | | | | gas prices, we can actually fight back against rising ad |
| generate a referral.Successful referral lead generation | | | | cost by using the Internet to improve customer |
| starts when a marketer or business owner adopts a | | | | retention and facilitate in the referral generating |
| new mindset about referrals, recognizing the sales | | | | process. Satisfied customer advocates are our best |
| potential available through a warm market. A warm | | | | selling asset and they're also the best defense against |
| market includes those customers, vendors or other | | | | rising advertising costs. Some ways in which |
| businesses that have worked with you in the past or | | | | technology can be used to grow referrals and save |
| have purchased your products or services, and had a | | | | ad 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 and | | | | forward 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 pursuing | | | | stay top of mind |
| customers to take time and learn how to get | | | | · Audio and Video Testimonials - increases |
| customers to pursue them. They say people change | | | | credibility 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 rather | | | | send and track rewards |
| continue pumping money into ineffective advertising | | | | · Affiliate Web Links - added exposure with |
| outlets or purchasing leads from brokers.This is | | | | reciprocal referral partnershipsDiana D'Itri is the Exec |
| especially true for certain industries like the mortgage | | | | VP of Ravebiz, a leading referral marketing and |
| industry where lead purchasing is a mainstay. A cold | | | | technology company. She's a key driving force behind |
| lead is an individual or contact that is not familiar with | | | | educating clients on how to generate more quality |
| your business, and has never purchased your products | | | | referred customers through practical applications and |
| or services before. These leads demand the longest | | | | an automated, web based system called the Rave |
| buying process and reaching them is challenging | | | | APG eReferral. |