How to Build a Strong Referral Circle
How to Build a Strong Referral Circle
Welcome back to another episode of the podcast. I am so excited to be talking all about marketing referrals. This is one of my favourite types of marketing. In my opinion, it is one of the most underestimated forms of marketing and it is such a simple way of getting new clients. I have found that most of my clients have come from referrals or direct pitching.
Let's dive into what referral circles actually are, how to set them up, how to nurture referral partners, and then any challenges I have found in building referral circles.
What is a Referral Programme?
Firstly, a referral programme is essentially when you have different referral partners, whether it is past clients, current clients or complementary service providers. They share about your services, their experience with you and then recommend you. A potential new client finds you as a result of that.
The benefits of referrals is when a new client comes from a referral partner, they have a level of trust that they don't have from other forms of marketing. That trust is already built just because someone has recommended you. It usually takes a higher level of strategy when you pitch without a referral partner.
Let me elaborate on the two types of referrals. One is referral through client experience and the other one is referral through complementary providers and partnerships.
Referral Partners
Offering current and past clients a financial motivation
By this I mean in the way of a referral payout. A lot of times clients will naturally refer but there is a higher level of motivation when you offer a financial reward.
The first way I do this is to have it mentioned in the onboarding form. Something along the lines of I am so excited to work with you and I would love if you could recommend my services to friends or business associates. You would then say, as a thank you, for every person you recommend I will pay you $100 for example.
Alternatively, it could be a 10% or 20% discount off their first invoice. Depending on what your service is, you can then send a remix of your initial email every month or so. You would, of course, mention the referral payout. This would also help to keep you highlighted as a service provider to those clients, so it has a two-fold purpose.
Other industry providers
This would mean industry providers who are complementary to you. For example, if you are a wedding florist, your referral partners would be wedding photographers, wedding florists, cake decorators etc. So basically, finding services your potential client is also using and have them recommending you for your services.
Complementary or direct competitors
Depending on the approach that you're taking, this is where I really like to direct pitch. If you are interested in learning more about pitching and different templates to use or wanting my feedback on how to pitch, then definitely head to @withhannahandco.com/club to get on the wait list.
Essentially what you want to be doing is direct pitch past partners and to nurture that relationship. The way you do this is by sending them referrals. If you are able to do this, they are also going to do this for you. It also is two-fold as they are then reminded of your business.
The other way of nurturing is commenting on their Instagram or wherever you're following them. By keeping yourself highlighted, you are then essentially remaining top of mind and this can lead to them reaching out to you. It’s really important to stay top of mind for both types of referral partners.
Tracking Referrals
The way I do this is in my inquiry form with Dubsado. I have a question in my form about how they came across me. If they tick referral, I also ask who that was so that I can say thank you to them. I also ask in the initial sales call as well so that I can track where the referral came from.
As an action step for this episode, I would suggest you go and check out your client experience process. Ask yourself how I can integrate my referral programme into this process? Identify three ideal complementary service providers and reach out to them to set up a referral programme.
I hope that this has been helpful and if you have any questions about referral programmes at all, definitely send me a DM on Instagram @Withhannahandco. I would love to chat all things, referral circles and would also love for you to tag me on Instagram. Please share your biggest takeaway from this episode and leave me a 5-star review as well.
I can't wait to hang out with you on next week's episode.
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