- Posted by: Ruth Van Vierzen
- Category: Blog
Referrals, also known as word-of-mouth advertising, is one of the most cost-effective ways to generate new business. After all, someone who has been referred by a trusted friend or associate is more likely to make a purchasing decision based on that referral.
There are many ways to generate referrals for your business: both before and after the sale, by offering incentives, and simply by letting customers know your business relies on word-of-mouth advertising, to name a few. A simple Google search will generate lots of great ideas. But if you follow my blog posts or watch my webinars, you know that I love systems. So I got systematic about generating referrals and developed a proactive approach I call Reciprocal Referral Partnerships (RRP).
My RRP system is a simple system that you can incorporate into your regular business activities. It’s meant to complement your current approach to referrals, not replace it. The details of my system, including the outreach message I use, questions to ask and other great tips are all available in my blog article at SalesPOP!
Another great benefit of RRP’s is that they do double duty to promote your business. Each person you meet with about establishing an RRP will learn more about your business and could end up becoming a new or returning customer themselves.
You may also want to check with your local Chamber of Commerce to see if they offer a referral club. I recently spoke at a local B2B Networking Referrals Club for Chamber of Commerce members. It’s a well organized professional development and referral club that is gaining attention from Chambers of Commerce in other cities.
Best of luck growing your business this year with a more proactive approach to word-of-mouth advertising. Submit your questions in the comments box, share your suggestions with readers and be sure to let us know how this is working for you!