The 5wh Of  Referral  Marketing1
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The 5wh Of Referral Marketing1

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The objective of this presentation is to introduce you to referral marketing- a systematic referral-generating system that can be adopted, cost effectively, by any developing enterprise.

The objective of this presentation is to introduce you to referral marketing- a systematic referral-generating system that can be adopted, cost effectively, by any developing enterprise.

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    The 5wh Of  Referral  Marketing1 The 5wh Of Referral Marketing1 Presentation Transcript

    • A Step by Step Introduction to REFERRAL MARKETING Brought to you by 5wh
    • OBJECTIVE The objective of this presentation is to introduce you to referral marketing- a systematic referral- generating system that can be adopted, cost effectively, by any developing enterpriseFebruary 2011 5wh Marketing 2
    • ACKNOWLEDGEMENT ACKNOWLEDGEMENT This work is not for sale. It wasadapted from the book “Business “Business To know more about our by Referral” by Ivan R Misner, Referral” company and our Ph.D. and Robert Davis products & services and to start a relationship, here isAdapted into this presentation by Caleb:- Caleb:-Caleb Mutsumba, founder Five WH Cell: Corporate Services (Pvt) Limited +263 712 620 287 (“5wh”), Harare. (“5wh”), +263 772 466 540 Email: 5wh is a relationship-based relationship-based caleb@zol.co.zwBusiness Services company which specializes in Internal Audits, Other: Forensic Audits and Business P.O. Box 1361 Harare P.O. Box 1361 Harare Systems Consultancy. February 2011 5wh Marketing 3
    • DEFINITIONSv RMC - Referral Marketing Campaignv Prospect - Prospective buyerv Referral – Name of a prospect (the person referred to you by your source)v Source - Referral Source (the person who provides you with a referral)v Network – A systematically selected group of people (contacts) that you can call on when the need arisesv BNI – Business Network Internationalv NSA – National Speakers Association (USA) February 2011 5wh Marketing 4
    • DEFINITIONS You Source ProspectFebruary 2011 5wh Marketing 5
    • BNI/NSA SURVEY Most Effective Method of Generating Referrals Referral Service Internet RecognitionMothod Seminars Incentives Ask in Writing Ask OrallyNetworking Groups 0 20 40 60 80 100 Percent of Respondents February 2011 5wh Marketing 6
    • IT’S ALL ABOUT RELATIONSHIPSIT’S v The key concept in referral marketing is relationships v A relationship benefits both parties v Relationships must be nurtured so they can grow from VISIBILITY through CREDIBILITY to PROFITABILITY (VCB) February 2011 5wh Marketing 7
    • VCP: THE THREE PHASES OF GETTING ACQUAINTED1. Visibility üYou and the other guy become aware of each other üThe greater your visibility, the more widely known you will be üMust be actively maintained and developedFebruary 2011 5wh Marketing 8
    • VCP: THE THREE PHASES OF GETTING ACQUAINTED2. Credibility üThe quality of being reliable, worthy of confidence üWill a third party vouch for your credibilityFebruary 2011 5wh Marketing 9
    • VCP: THE THREE PHASES OF GETTING ACQUAINTED3. Profitability üMature relationship; mutually rewarding üMust be cultivatedFebruary 2011 5wh Marketing 10
    • FINDING YOUR STARTING POINT The ability to clearly communicate your business mission, the nature of your products and services, your target market and your competition will be invaluable as you begin to build your NetworkFebruary 2011 5wh Marketing 11
    • FINDING YOUR STARTING POINT WHAT DO YOU SELL?Know by Heart - Your Products and Servicesv What is the purpose of your Product/Service?v What needs/wants does it satisfy?v How would you describe it?v What are its benefits, functions, features?v How is it delivered to the customer?v How much does it cost? February 2011 5wh Marketing 12
    • FINDING YOUR STARTING POINT WHAT DO YOU SELL?Know by Heart - Your Target Marketv Who are your most likely customers?v Why do they come to you?v What is your area of expertise?v What area of your business gives you the most pleasure and the most profit?v Where should you concentrate your referral gathering efforts? February 2011 5wh Marketing 13
    • FINDING YOUR STARTING POINT HOW WELL DO YOU COMPETE? Know by Heart - your Competitive Position v Are you cost competitive? v Are you price competitive? v Are you quality competitive? v Are you seen as the supplier of choice? v Is your market share growing or not? February 2011 5wh Marketing 14
    • HOW YOUR NETWORK CAN HELPThey can:v Display your literature and productsv Distribute your marketing information and materialsv Make promotional announcements for youv Invite you to attend eventsv Endorse your products and servicesFebruary 2011 5wh Marketing 15
    • HOW YOUR NETWORK CAN HELPThey can:v Nominate you for recognition and awardsv Provide you with leadsv Provide you with referralsv Make initial contacts with prospects and sourcesv Introduce you to prospectsFebruary 2011 5wh Marketing 16
    • HOW YOUR NETWORK CAN HELPThey can:v Arrange meetings on your behalfv Follow-up with referrals they have given youv Publish information for youv Serve as a program or event sponsorv Sell your products and servicesv Share information and knowledge with you February 2011 5wh Marketing 17
    • HOW YOUR NETWORK CAN HELPRemember:v Keep a list of your needs with you at all timesv Knowing how to match your needs with the right sources is key to obtaining the types of help you needFebruary 2011 5wh Marketing 18
    • THE NETWORK ARCHITECTUREThree Function-based Components:v Information Networkv Support Networkv Referral Network February 2011 5wh Marketing 19
    • THE NETWORK ARCHITECTUREHow do you Build a Network:v Categorize your Network members into each of the 3 componentsv Identify as may prospective Network members as possible; i.e. the most qualified or experienced people you know or know ofFebruary 2011 5wh Marketing 20
    • THE INFORMATION NETWORKCategorizing your Network members:v People like youv People who are in your professionv People who were in your professionv Authors in your industry/sectorv Regulators in your industry/sectorv Trainers in your industry/sectorv Consultants in your industry/sectorv Members of professional organisations February 2011 5wh Marketing 21
    • THE SUPPORT NETWORKCategorizing your Network members:v Your mentorsv People you have mentored or taughtv People you have helpedv Co-workers, associates, classmatesv Family and friendsv Members of non-business groupsv Former managers, supervisors, instructorsv Church leaders, members, groups February 2011 5wh Marketing 22
    • THE REFERRAL NETWORKCategorizing your Network members:v People in your contact sphere (those who complement rather than compete with you)v Satisfied clientsv People whose business benefits from yoursv Others with whom you do businessv Staff membersv People to whom you give referralsv Anyone who has given you referralsv Members of business referral groups February 2011 5wh Marketing 23
    • STRNGTHENING YOUR NETWORKv Customize your network (create other components and categories as appropriate)v Identify at least three individuals per categoryv See it as creating your own Yellow Pages – i.e. a list of experts and contacts for you to get acquainted with before you need themv Spot the voids (categories with less than 3 people) and strive to fill themFebruary 2011 5wh Marketing 24
    • GETTING TO KNOW YOUR NETWORK MAMBERSGAINS – The least you should know aboutyourself and anyone you wish to establish arelationship with:vGoalsvAccomplishmentsvInterestsvNetworksvSkills February 2011 5wh Marketing 25
    • GETTING TO KNOW YOUR NETWORK MAMBERSGoals ØShort-, medium- or long-term personal, business, etc. objectives ØDefine goals clearly, i.e. SMART ØShare your goals with your Network; that way you will be most helpful to each other ØKnow what you want and need February 2011 5wh Marketing 26
    • GETTING TO KNOW YOUR NETWORK MAMBERSGoals ØShort-, medium- or long-term personal, business, etc. objectives ØDefine goals clearly, i.e. SMART ØShare your goals with your Network; that way you will be most helpful to each other ØKnow what you want and need February 2011 5wh Marketing 27
    • GETTING TO KNOW YOUR NETWORK MAMBERSAccomplishments ØGoals that have been achieved ØMay be modest, but satisfying, e.g. creating a marketing plan ØIn conversation, encourage people to talk about their accomplishments ØShare your accomplishments with others February 2011 5wh Marketing 28
    • GETTING TO KNOW YOUR NETWORK MAMBERSInterests ØThe things you enjoy doing, talking about, listening to or collecting ØShare your interests with others, the more you have in common the stronger the relationship ØMatching gifts, information, etc. to someone’s desires comes from knowing their interests February 2011 5wh Marketing 29
    • GETTING TO KNOW YOUR NETWORK MAMBERSNetworks ØMay be formal or informal, e.g. ex-schools ØTo the saying’ “It’s not what you know but whom you know” can be added “and whom the people in your Network know” ØEach Network member is part of several other networks ØKnow their networks and let others know of your networksFebruary 2011 5wh Marketing 30
    • GETTING TO KNOW YOUR NETWORK MAMBERSSkills ØTalents, abilities, gifts ØMany of us are unaware of the skills we possess ØInventory your skills reliably ØLet others know of your skills February 2011 5wh Marketing 31
    • GETTING TO KNOW YOUR NETWORK MAMBERSDiscovering Others’ GAINS ØListen ØObserve ØAsk questions ØReview written materials ØAsk others ØShare your GAINS (“Givers gain”)February 2011 5wh Marketing 32
    • GETTING TO KNOW YOUR NETWORK MAMBERS Recording the GAINS ØKeep a record of the GAINS of your contacts ØContinually update the GAINS records ØLabel each item G, A, I, N or S for easy reference GAINS is the minimum you have to know of your contactsFebruary 2011 5wh Marketing 33
    • GETTING TO KNOW YOUR NETWORK MAMBERS Quality Time ØSpend some time with your contacts ØBe prepared to discover more GAINS (yours and theirs) and other attributes ØThe more someone knows about you the closer you are to their mindFebruary 2011 5wh Marketing 34
    • GETTING TO KNOW YOUR NETWORK MAMBERS Matching Needs with Sources ØDetermine type of help you prefer from each contact ØA good match takes into account the source’s availability, flexibility, interest and accurate GAINSFebruary 2011 5wh Marketing 35
    • EIGHTEEN WAYS TO MOTIVATE YOUR SOURCES1. Volunteering – help a source achieve a goal2. Recruiting – offer a source a function or task on your business3. Researching – e.g. survey participation4. Reporting – e.g. interview source for article5. Source Seeking – ask source to name someone who can do something for you, inform you, etc. February 2011 5wh Marketing 36
    • EIGHTEEN WAYS TO MOTIVATE YOUR SOURCES6. Advice Seeking – not the kind they would charge you for7. Advising - not the kind you would charge for8. Announcing – forthcoming events, opportunities, etc9. Shopping – pre-purchase activities or enquiries10. Purchasing – becoming your sources customer February 2011 5wh Marketing 37
    • EIGHTEEN WAYS TO MOTIVATE YOUR SOURCES11. Connecting – help sources expand their Networks12. Inviting – invite ‘em (remember their GAINS!)13. Recognizing – rewards, awards, etc.14. Horn Tooting – not of the bragging type15. Collaborating – informal partnering for mutual benefit February 2011 5wh Marketing 38
    • EIGHTEEN WAYS TO MOTIVATE YOUR SOURCES16. Sponsoring – backing for projects or programs17. Promoting – “Do unto others as you …..”18. Auditing – client feedback for testimonials Offer any other kind of help as appropriate, e.g. help sources implement this referral- generating system February 2011 5wh Marketing 39
    • ACTIVATING YOUR REFERRAL NETWORKThe Five Phases:1. Recruiting referral source2. Briefing referral source3. Priming the prospect (by referral source)4. Initiating contact with prospect5. Rewarding referral sourceFebruary 2011 5wh Marketing 40
    • RECRUITING REFERRAL SOURCESv Plan your agenda and call themv Purpose of contacting them is to- i. ask for referral generating support ii. give them a brief overview of your plans iii. schedule an appointment to detail the plansv A few guidelines - February 2011 5wh Marketing 41
    • RECRUITING REFERRAL SOURCESØ Start with appropriate greeting and small-talkØ State purpose of call and time you needØ Ask whether it’s good time to talkØ Talk in terms of your source’s interests - how does your proposal benefit him/herØ Schedule a meeting or tele-meetingØ Advise him/her you have information for him/her to reviewFebruary 2011 5wh Marketing 42
    • BRIEFING YOUR REFERRAL SOURCEObjective: you want the referral source to:ØMake initial contact with prospectØSend background information to prospect (and to you)ØLet prospect know of your relationship with sourceØBriefly introduce your services to prospectØIntroduce prospect to youØFollow-up with prospect afterwardsFebruary 2011 5wh Marketing 43
    • BRIEFING YOUR REFERRAL SOURCEPlanning:ØShow them how they can help youØDevelop literature for themØPrepare material that they can useØGive them clear instructions of what they should do for youØProvide administrative and other supportØPay their consequential expensesFebruary 2011 5wh Marketing 44
    • BRIEFING YOUR REFERRAL SOURCEThe Short Course:ØThe more your referral sources know about your products/services the better they can articulate them to prospects and the better they can select appropriate prospectsØKnowing each other is a two-way street. Remember GAINS!February 2011 5wh Marketing 45
    • BRIEFING YOUR REFERRAL SOURCEThe Short Course:ØSome ways to help sources get to know your services/products better: ü Let them sample your products/services üAsk them to critique your marketing material üSend them your newsletter üAsk them to introduce you when you do presentations üTell them you want to know them better, ask about their GAINSFebruary 2011 5wh Marketing 46
    • BRIEFING YOUR REFERRAL SOURCEThe Short Course:ØSome ways to help sources get to know your services/products better: ü Invite them to events where you can learn more about each other üRecord information about your services/products in your answering machine or switchboard üInvite them to speak to your groups üInvite them to visit your web pageFebruary 2011 5wh Marketing 47
    • PRIMING YOUR REFERRAL SOURCEThe Short Course:ØSome ways to help sources get to know your services/products better: üInclude information about you on the “sig” file of your email üAsk them for adviceFebruary 2011 5wh Marketing 48
    • PRIMING YOUR REFERRAL SOURCEThis is the only action within the five-phase cycle which is not ours to take – the ball is in the sources court. The aforementioned briefing (i.e. training and educating) sessions are therefore crucial. It’s all to do with trust: Prospect trusts source. … .source trusts you. You want prospect to trust you! February 2011 5wh Marketing 49
    • PRIMING YOUR REFERRAL SOURCEThe Referral source will have to:ØPrepare the ground for you to know how best to approach prospect when your time comesØFollow-through and arrange for either prospect to be ready to hear from you or introduce you physicallyØGive you the feedback, so you can take over direct contact with prospect in due courseFebruary 2011 5wh Marketing 50
    • CONTACTING YOUR PROSPECTRemember the 3P’s: Planning. Planning. Planning üBefore making contact, do your homework üKnow exactly what material and correspondence has changed hands between source and prospect; have copies üFind out from source the best way to make initial contact, phone, fax, email? February 2011 5wh Marketing 51
    • CONTACTING YOUR PROSPECTØPurpose of first contact is not to make a sale. The purpose is to: üGet to know the prospect better üHelp prospect to get to know you better üBegin to build a relationship üPosition yourself to make the next contact üSee if prospect fits source’s descriptionFebruary 2011 5wh Marketing 52
    • CONTACTING YOUR PROSPECTØMeet the Face üMeet the prospect within 72 hours of getting the green light from source üIf your source can be present, so much the better for s/he will do the introductions üIf not present, aptly structure your opening by mentioning the sourceFebruary 2011 5wh Marketing 53
    • CONTACTING YOUR PROSPECTØMeet the Face üProspect may decide to do business with you at the onset üLet the prospect lead you onto when/how s/he will be ready to do business. Listen for hints to that effect üRemember to talk about his/her interests, not yours üSchedule the next meetFebruary 2011 5wh Marketing 54
    • CONTACTING YOUR PROSPECTØFollow-up üSend a note of thanks a.s.a.p., not later than 48 hours üDon’t sell: Prospect will buy when the time comes; s/he knows your products/services üNurture the relationship….GAINS, VCP!February 2011 5wh Marketing 55
    • RECOGNIZING & REWARDING YOUR SOURCESv Keep your referral source apprised throughoutv Share what you plan to do nextv Promise to keep him/her informed and keep him/her informedv Nurturing a relationship is ongoingFebruary 2011 5wh Marketing 56
    • RECOGNIZING & REWARDING YOUR SOURCESQuestions to consider before creatinga reward programme : ØWhen to reward the source ØWhat kind of reward ØHow much ØWhat kind ØWhen/how reward will be presented ØHow to keep track of the reward activityFebruary 2011 5wh Marketing 57
    • RECOGNIZING & REWARDING YOUR SOURCESvDifferentpeople may require different rewarding waysvDistinguish between tangible (e.g. cash) and intangible (e.g. a public “thank you”) rewardsvBe consistent; promise what you do and do what you promisevBudget for the programmeFebruary 2011 5wh Marketing 58
    • BUDGETING AND ALLOCATING YOUR TIMEYou want to avoid:vSpending too much or too little on a taskvLoosing control of your timevChasing wild geesevAbandoning your efforts too soonFebruary 2011 5wh Marketing 59
    • BUDGETING AND ALLOCATING YOUR TIMESeven Steps to Budgeting Time:1. Estimate total time available2. Estimate total time available per period3. Allocate time per source4. Determine the number of contacts per sourceFebruary 2011 5wh Marketing 60
    • BUDGETING AND ALLOCATING YOUR TIMESeven Steps to Budgeting Time:5. Determine the length of each contact6. Determine the time per activity7. Set up your calendarFebruary 2011 5wh Marketing 61
    • BUDGETING AND ALLOCATING YOUR COSTSSix Steps to Budgeting Costs:1. Estimate total funds available2. Estimate total funds available per period3. Determine funding amount per sourceFebruary 2011 5wh Marketing 62
    • BUDGETING AND ALLOCATING YOUR COSTSSix Steps to Budgeting Costs:4. Determine the number of contacts per source5. Determine the funding of each contact6. Determine the funding per activity or expense category, e.g. lunches, travel, phone, gifts, research, printing, etc. February 2011 5wh Marketing 63
    • FORECASTING SALES FROM REFERRALSForecasting should be based on:v Expected number of referralsv Expected dollar value of the expectationv Percentage of referral to whole businessv Number of sources required to meet the expectations Analyze these four factors over your reference period, i.e. a recent period, e.g. a year February 2011 5wh Marketing 64
    • TRACKING AND EVALUATING RESULTSYou have to use your sources and resources wisely. you need to know:v Whether and how well your RMC is workingv How you can improve future resultsv How much your money and time investments are earningBesides money and time, you also need to track activities, by source. February 2011 5wh Marketing 65
    • IN SUMMARYv Use referral prospecting to build your businessv Have a referral mindsetv Turn your happy clients into referral sourcesv Your clients benefit when you ask for referrals. It’s in their interest for you to reach your vision of success. Let your clients know that you value their help.v Practice the golden rule of referral giving: To get great referrals give great referralsv It’s all about trust: Credibility is essential. February 2011 5wh Marketing 66
    • Thank You! To know more about our company and our products & services and to start a relationship, here is Caleb:- Cell: +263 712 620 287 +263 772 466 540 Email: caleb@zol.co.zw Other: P.O. Box 1361 HarareFebruary 2011 5wh Marketing 67