Rethinking Referrals

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The document discusses referrals for professional services firms. It explains that referrals come from both experience and reputation, and that over 80% of firms receive referrals from people they have not worked with directly. The most important factors that increase referrals are visible expertise, professional relationships, social relationships, and reciprocity. However, over 50% of potential clients rule out referrals before speaking to them, often because the firm's website is unimpressive or lacks quality content demonstrating their expertise. To succeed at referral marketing, firms must showcase successful projects, have experts speaking publicly, maintain a high-quality website, stay on top of industry trends, and generate educational content.

Marketing

#VisibleExpert
Image
here
Rethinking Referrals: Why Conventional
Wisdom is Wrong…and What to Do About It
Presented by: Lee Frederiksen, Ph.D. 
Managing Partner at Hinge

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
What We’ll Cover Today
1
2
3
4
How Referrals Work
How to Increase Referrals
How to Keep the Referrals You Get
5 Must-Haves for a Successful Referral Marketing Strategy
2

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
1168
3
participants

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
Experience-Based Reputation-Based
Two Types of Referrals
5

professional services buyers
say they would refer their provider.
Source:
Inside
the
Buyer’s
Brain
8 10out of

of ﬁrms have received a referral from
people they have not worked with.
Source:
Visible
ExpertsSM:
How
High
Visibility
Expertise
 
Helps
Professionals,
Their
Firms,
and
Their
Clients
Going Beyond Traditional Client Referrals
81.5%

Where Do Non-Client Referrals Come From?
Comes from your
reputation, expertise,
and visibility
Comes from someone
you’ve met before
Source: Referral Marketing for Professional Services Firms

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
“I’ve heard
they’re a great
firm.”
10
Anatomy of a Reputation
“They’re experts in
working with
chain restaurants.”

Source: Referral Marketing for Professional Services Firms
more referrals than your  
general reputation*
61%
Your Visible Expertise  
generates

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
Which factors increase the probability of referrals?
0.4%, Sponsorships
0 302010
13

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
Reciprocity works
18

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
How Do They Learn About Your Expertise?
22

#RethinkingReferrals
Source: Referral Marketing for Professional Services Firms Research Report
51.9%
of potential clients have
ruled out a referral before
speaking with them.

#RethinkingReferrals
rule out a ﬁrm because
they couldn’t understand how
the ﬁrm could help them.
Source: Referral Marketing for Professional Services Firms Research Report
43.6%

29.6%
Source: Referral Marketing for Professional Services Firms Research Report
of professional services buyers have
ruled out a ﬁrm because of an
unimpressive website.

#RethinkingReferrals
rule out ﬁrms because
of poor quality content.
23.5%
Source: Referral Marketing for Professional Services Firms Research Report

5 Must-Haves
for a  
Successful Referral MarketingStrategy

Showcase successful,
high-proﬁle projects.
11

In house-experts who
speak at conferences
and trade shows
22

44Being at  
the forefront
of industry
trends

55Generating  
high-quality,
educational
content

Rethinking Referrals: Why conventional wisdom is wrong and what to do about it |
Contact Info
Lee Frederiksen, Ph.D. 
Managing Partner, Hinge Marketing
lfrederiksen@hingemarketing.com
www.hingemarketing.com/blog
www.twitter.com/HingeMarketing
www.facebook.com/HingeMarketing
www.linkedin.com/companies/Hinge
www.hingemarketing.com
703.391.8870
Connect with Hinge
Connect with me:
in/leefrederiksen
@LeeFrederiksen

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