Use This Powerful Referral System

February 9th, 2014

Prospective clients or customers who come to us via referrals are likely to make their buying decision a lot faster. Referrals are always more profitable as you invest less in terms of time, money and energy to acquire them as customers. Beyond this, they are far more loyal and stay with you for a longer period.

But the problem is that most business owners don’t seem to understand how the referral process works. So let’s look a little closer…

Many company owners who drive new business via referrals have too few referral sources – or Centres of Influence (COI). Some who claim that they work with more than 50 COIs, on further probing, are found to have little knowledge about how to classify a COI. To many of them, a COI is someone who knows and meets many people. A highly influential public figure like the Mayor or a politician would know and meet several people, but they might not necessarily become your Centre Of Influence. Therefore it also requires that the COI knows you personally and that they are driven by the urge to see and help you become successful.

Most professionals also lack a system by which they would build and nurture the relationships and get referrals from each Centre Of Influence. The more superficial our interaction, the less the chances of COIs taking a liking to us and helping us.

So how do we ensure that our Centre Of Influence generates an ongoing flow of referrals?

Here are 4 ways to a successful referral system:

1. Cultivate your referral sources. For ensuring a steady source of referrals, you would need to work with at least 12 ‘core’ and 100 potential Centres Of Influence. You can meet the core group regularly and take them out for lunch or coffee, while the others are ones with whom you are building a relationship. You can expand your COI by attending network events or by asking for advice from the present members of your core group of COIs.

2. If you’re not able to meet, send a card or note by post – it is this regular contact that will help you to generate a steady stream of referrals.

3. When sending messages across, it is important that you develop a unique niche for yourself and differentiate yourself from others in your industry. This makes people take note of you and remember you.

4. One important aspect that most entrepreneurs miss out is to build an emotional bond with their Centre Of Influence. Once they have taken the effort to know them personally, this creates a positive impression and a lasting relationship.

With at least 12 Centres Of Influence, and using the above steps, referrals to your business are bound to grow at a steady pace.

Comments are closed.