Live Blissed Out

043 - Referral Marketing

June 30, 2020 Marisa Huston & Beth Boen Episode 43
Live Blissed Out
043 - Referral Marketing
Show Notes Transcript Chapter Markers

Joining me is Beth Boen, Founder of S.H.E. Leads Group (Supporting Heart & Enterprise)

Beth enjoys helping people build long-term, loyal relationships that produce quality connections, lead to lifetime customers and referral partners and provide endless referrals. 

She teaches businesses how to be successful in any kind of business relationship. 

She brings together more than 30 years of sales, marketing and customer service experience to provide S.H.E. Leads Group members practical training.

If you are eager to learn how to thrive at referral marketing, sales, customer service, and a variety of other business development topics, S.H.E. Leads Group is a place where you can feel welcome and build your business.

To learn more visit https://sheleadsgroup.com

To download your free guide on the Top 10 Tips for turning referral partners into your best performing marketing method, visit

https://www.sheleadsgroup.com/liveblissedout

In this episode we will cover:

  • What Is Referral Marketing?
  • Systems
  • Trust Factor
  • Prompt Response
  • Asking For Referrals
  • The Wrong Way To Ask
  • Make It Easy
  • Why Referral Marketing Fails
  • Value
  • Appreciation & Gratitude
  • Buckets

Thanks so much for tuning in again this week. I appreciate you 🙂

Have some feedback you’d like to share? Leave a note in the Feedback section.

Special thanks to Beth Boen for being on the show.

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Marisa: [00:00:00] This is episode 43 on the Live Blissed Out podcast. 

Referral marketing is a word of mouth form of marketing that can enhance your brand reputation. Did you know that over 50% of people claim that they are more likely to provide referrals if they were offered an incentive or rewarded through a loyalty program?

Hello, action takers. Welcome to Live Blissed Out. A podcast where I have authentic conversations with business owners and subject matter experts to help us get the scoop, the 411, and the low down on a variety of topics. Tired of hesitating or making decisions without having the big picture? Wanna be in the know? Then this is the place to go.

I'm your host, Marisa Huston. Helping achieve bliss through awareness and action. Thanks for joining me. The information, opinions and recommendations presented in this podcast are for general information only, and any reliance on the information provided in this podcast is done at your own risk. This podcast should not be considered professional advice.

Joining me is Beth Boen, founder of She Leads Group. Beth enjoys, helping people build longterm loyal relationships that produce quality connections, lead to lifetime customers and referral partners and provide endless referrals. She teaches businesses how to be successful in any kind of business relationship.

She brings together more than 30 years of sales, marketing, and customer service experience, to provide she leads group members with practical training. If you are eager to learn how to thrive at referral marketing sales customer service in a variety of other business development topics, She Leads Group is a place where you can feel welcome and build your business. To learn more visit www.sheleadsgroup.com. To download your free guide on the top 10 tips for turning referral partners into your best performing marketing method, visit www.sheleadsgroup.com/liveblissed out. 

Searching for a minimal versatile handheld tripod? Look, no further. Switchpod works with any camera from a phone to a DSLR and simplifies video making. Switch pod is lightweight, compact, and nearly indestructable. It will save you time between shots so you can focus more on shooting and less on messing with your gear. Just head over to the partners tab at liveblissedout.com and click on the switch pod link to let them know I sent you and help support the show.

Hi, Beth. It's great to have you here today. 

Beth: [00:02:32] Thanks Marisa. Thanks for having me. It's great to be here with you. 

Marisa: [00:02:35] This is going to be a fun conversation because I think marketing is a topic that you and I both enjoy talking about. And this is a form of marketing, which many small businesses always seem to say is their main source of getting business, and that is referral marketing. So you and I both know how important that is. But I think that we've had conversations in the past and we both agree that oftentimes people do not understand what referral marketing really is and how impactful it can be and what are some guidelines that they should be thinking about in order to make the most out of referral marketing.

What exactly is referral marketing and why is it so important? 

Beth: [00:03:19] Well, thanks Marisa. Yeah, it is a topic that's near and dear to my heart. I just see so many people who don't know how to do it, and yet it is so important because it has the lowest cost, it has the highest return on investment, the highest close rate, the shortest sales cycle it's just the perfect kind of marketing that everyone should do.  And yet I do have people telling me that it doesn't work for them. And my whole thing with that is there must be something that they're not doing correctly if it's not working for them. And so I would love to provide some tips today on how to make it very effective. Referral marketing is basically a method of getting your customers and your professional referral partners to refer to you.

Some people call it word of mouth advertising, and it doesn't happen automatically. And. These referrals, they can come from your existing customers, they can come from your friends and families, they can come from what some people call strategic alliances or power partners or professional referral partners.

And so it's just a very important type of marketing to do. It should be an actual strategy in their marketing plan. There's all different kinds of tactics with referral marketing and that's why I say it's a strategy. 

Marisa: [00:04:35] Referral marketing sounds so natural, right? If somebody likes the service that you provide, then they tell other people, and hopefully that'll lead to a dialogue, which in turn will lead to business.

But because it's such a natural process, I think we often forget as small business owners thatt here should be some sort of consistency and system that we implement. And I find that so many people really don't look at it that way and as a result, they're not consistent in terms of how they take care of those referrals that they receive.

Beth: [00:05:06] Right. And for most those referrals happen by chance because they don't have a system and. Businesses can influence and increase the amount of referrals they get through having a system. For me, that system really is staying top of mind with my sphere of influence. We all have a sphere of influence people we know, and they know us and that could be 250 people or more. And if we're not staying in touch with those people and staying top of mind with them, they will not remember us, to refer to us. I really believe too, that to be successful at referral marketing, you really have to take some time at it. It just doesn't happen overnight.

We've all heard about the know like, and trust factor, and it doesn't happen because you met somebody at a networking event. It doesn't happen because you did a coffee meeting with them. It takes time. It's relational. It's not transactional. It takes a system to stay top of mind. You know, some things that I have done, some tools that I have used are a CRM. I really investigated different customer relation management tools that were out there and I landed on one that works for me. And the reason it works for me is because I can go in there and I can say, Oh, this is Marisa Huston. And I need to contact her at least once a month to stay top of mind with Marisa.

And I can go into my CRM and I can tell my CRM, I need to touch. I use the word touch. It could be a phone call, it could be an email, it could be a handwritten card, anything like that. I just want to stay in touch with you. And when I stay in touch with you, maybe it's just to check in to see how you're doing.

And so I think that's one thing that people need to realize that it is a time investment and you do need to put the effort forward to make it work. 

Marisa: [00:06:57] I agree. And I think that so many people seem to miss that piece of it because when you're in business, you put that business hat on and you're just concerned about results.

You're always looking at how do I get that next sale? How do I line up as many people as possible in my pipeline? But really referral marketing is even more effective because it's based off of relationships and trust. And the other piece of it too, is that when somebody refers you, that's the most flattering thing that could ever happen, because that means that they truly trust you to take care of somebody they know, because if you don't take care of that person for them, then it puts them in a very compromising situation. So that's one of the reasons why I think that it is so beneficial because the person that's referring really looks like a rock star when you take care of the client that they sent your way.

And then the client also is very appreciative because they don't have to worry about not being able to trust the person because it came from a trusted source to begin with. 

Beth: [00:07:57] Right. And that trust factor. I want to talk about that because it's really interesting. I mean, when we're giving referrals to different people, we are staking our own reputation on the line.

And so before I hand on a referral, I want to be able to trust that the person I'm referring to is going to take care of the person I'm referring to them. And that trust can be built in a variety of different ways. And one of the ways that I, that I think is very important and I don't think a lot of business owners realize this, there may be a prompt to respond to their customers and they'll respond same business day to their customers. But I have had the occasion where I've handed out a referral to someone and it's not acknowledged. And I'm like, well, did they get it ? Like you Marisa, I do a really nice email introduction, introducing both parties. And before I even would make an email introduction to someone I'm going to vet them, I'm going to make sure that their website is one that looks reputable. I'm going to look at their online reviews. I'm going to look if they have any complaints lodged against them in the BBB database. You do not need to be a member of the BBB to have someone lodge a complaint against you. And so I really vet those that I provide referrals to and customer service to your referral partners is so important because if I get bad customer service from somebody who's looking to potentially get referrals for me, meaning they don't respond to me promptly. Let's just use that as the example. The way they treat me is the way that I think they're going to treat my referrals. 

Marisa: [00:09:35] Oh yeah. 

Beth: [00:09:35] Yes. And the other thing is a common mistake that businesses will make, or a business owner, or someone who's a salesperson might make is they might say, Oh, I have been so busy. I'm so sorry. I'm so busy. Well, that is not a good message to send because you're saying I'm too busy to get another customer. If you're saying that in any of your language. It's been a week. I'm so sorry. I'm so busy. Well, then that's going to make me think that the other person won't respond to my referral timely. So there's some things with our customer service, with our referral partners.

And we're talking about professional referral partners that we definitely need to make sure we're providing a prompt response and that we're treating these referral partners with courtesy and respect and to use good phone email. And even if you're using texts, use good texting etiquette. And without that, you're going to be hard pressed to get that trust factor going.

Marisa: [00:10:34] It doesn't take much to just say thank you so much for the referral. I am going to follow up or send a message to the person that was being referred and say, I am going to reach out to you as soon as possible. Thank you so much. I appreciate it. Just any response, it takes seconds to do it, and you can do it anywhere. Even in the middle of a meeting. If you happen to get a message and you don't want to waste any time, you can simply respond to it. Or even set an autoresponder. But any which way that you can let the person know that you got the message that you're on it, and that you're appreciative, that's a great way to set things up for success.

Beth: [00:11:10] Definitely. And there's also the. Asking your clients and customers for referrals. There's the perfect time to ask. I want to just stress one point here. You know, sometimes people will say, well, I don't have any reviews or testimonials or recommendations. And what I want people to realize is that absence of feedback does not equate satisfaction by your customers or clients. A satisfied customer who you have wowed, will be writing you a testimony, writing your recommendation on LinkedIn. They'll be doing an online review for you. Statistics show that only 4% of people who have a bad experience will actually complain directly to you. And so just because you don't have any negative reviews online, does not mean that someone isn't unsatisfied.

Marisa: [00:12:02] There's no information. So how do you know either way? I think that we have a natural tendency to want to help other people. And when we know that we received good service, we want to let everybody else know so that when they need those services, they can avail of it. And it just makes you feel good to be able to direct people to businesses that you know, are going to care for them in the right way.

Beth: [00:12:25] Right. Sometimes people will say to me, I don't know how to ask. And there's a perfect time to ask your clients or customers when they're gushing over you and complimenting what a great job you did. That's a great time to ask for a testimonial or a recommendation. Maybe they're giving you results of how you helped them. That's another great time. There's so many seways that our customers and clients give us, but then when they are gushing over us and giving us compliments. They're doing that for us, but we're hesitant to say, would you mind putting that in writing? Would you mind giving me a testimonial? Would you do this?

And people love doing that kind of stuff. If they love you and they love working with you, when you ask them to do that for them, they're gonna be like, Oh my gosh, I would love to do that. 

Marisa: [00:13:11] Yeah.

Beth: [00:13:12] And it's just so easy to ask for those things. And the other thing too, is sometimes we can ask for referrals the wrong way.

And a lot of people teach it. The wrong way. So this is going to go against what a lot of other professionals might say. And I'm going to explain why I disagree with them. So a lot of people will tell you to say, do you know anyone else who would be interested in or use my service, or do you know anyone else thinking of buying something like this?

It's a very demanding question. It's very direct. It's very demanding and what's going to happen when they don't know anyone it's going to make them feel, unsuccessful and your customers want to feel successful. And so there is a better way to ask someone for a referral. It might sound something like I'm really glad you were pleased with my work. I'd really appreciate it. If you'd pass my name along, whenever you hear of anyone else who would be interested in fill in the blank, what you do. And then may I leave these extra business cards with you? I mean, that's the way that you know, they're going to say, yes, I'd be happy to do that. I'll take some of your business cards and they'll pass them out when they do hear of somebody that knows of someone needing your services.

Marisa: [00:14:27] And along those lines, don't you think that it just makes it so much easier when you respect the time of the person as well? And what I mean by that is how easy are you making it for them to refer you? So perhaps you could print some nice referral postcards. And if you were visiting somebody in their home, you can leave it for them with already a stamp on it. And even some verbiage that they can already utilize and then they just fill in the blanks basically, and then mail it out to somebody that might need your services. I mean, how easy are you making it for people to help you?

How clearly are you communicating where they're supposed to provide the feedback? So, for example, recently I gave feedback to a service that I received on Facebook. And the person was very grateful and let me know that, but at the same time they said, you know what? I just wanted you to know as much as I appreciate that, Google is really where people find me and get reviews. I know it's asking more from you, but would you mind taking a moment to put in a brief review on Google and I did it right on the spot. No problem. But I, as the consumer, wouldn't have known that. Unless they told me and said, Hey, could you do this as well?

So sometimes it's the communication factor and we just don't take the time to communicate our expectations and expect people to just know instinctually, how to support us. 

Beth: [00:15:47] Definitely. I totally agree with that. I actually have printed up in my own business, little you're invited cards that are the size of a business card.

And so what my clients can do is they can pass out these cards. They just have to fill out the back of the card and people can come to one of our networking meetings, or I have a you're invited postcard and I've offered my members to, you know, if you know someone who you want to invite to this, I'll write it for you. Just send me an email with what you want me to write on the card and I'll sign it from you. I'll stamp it and I'll put it in the mail for you. So definitely make it easy for your clients and customers to refer to you. There's all different kinds of ways that you can do that. 

Marisa: [00:16:33] Yes. Agreed. And even if we do it digitally, we can do it as well.

Those postcards, for example, could be in a digital format and then you send it on email and say, Hey, I'm part of this wonderful group. And I wanted to let you know about it. And if it sounds interesting to you, why don't you join our meetup, where we get together online, and we talk about what the group is about and what it has to offer and see what you think about it.

That's all it really takes. Again, we're not selling to anybody. And I think that's also kind of where people drop the ball is they think that they'd have to sell to people right up front. And that's very uncomfortable for most of us. None of us want to be sold to. 

Beth: [00:17:09] Right? Yes. The people who do that, they're assuming right away that you want to buy from them.

I have gone to networking events where I'll get somebody right away trying to sell to me at a networking event. There's no relationship there. There's no trust factor there. And it's just rather off putting, when someone does that. I go to networking events to just see who can I help you go to networking events with that mindset of who can I help at this networking event.

It really makes you stand out from all the other people at that networking event who are trying to sell you something. And so I think there are some reasons why that referral marketing doesn't work. We talked about reputation and online presence already. It's not done consistently, or it's not done right.

Another place is the lack of followup and follow through. We do these one on one meetings with people. And at that meeting, we say, Hey, you know, I know somebody that you need to meet and I'll give you an introduction. And then we write it down and we get back to our office and we don't make that introduction.

Then we kind of fall down and that doesn't help us to build up the trust factor with the other person. And so really following up and following through on what we promise is super important. 

Marisa: [00:18:24] And that just happened to me recently. I actually had somebody that asked for an introduction and I did it, and I knew that the other person needed the service and everything.

And would you believe they never followed up? And it was crazy. And I was able to find somebody else and that's somebody else followed up and actually got business out of it. And so I was sitting there going, I don't get it because the person asked for the introduction. They just never followed through. And it had nothing to do with them, not getting the email or anything like that, because I did it with several folks. And I know for a fact that they did receive the messages, but just never responded. So it's just shocking. Aren't you in the business of wanting to gain customers and b,uild trust with people.

It doesn't make sense to me, but there are people that just don't seem to do this. And so adding value is so important because if we can help people first and worry about how do we provide the best value for them all the rest of it will fall into place. 

Beth: [00:19:21] Definitely. And to add to that, you know, when you're talking about providing value from the very first one on one, you want to provide some value at that meeting.

It doesn't mean you have to open your contact list to the person, but what can you do at that very first time meeting one-on-one to provide value to the other person so that they can see that you really want to develop a relationship with them? And I always try to have some sort of follow up action at the end of every one on one meeting. And it could be simply let's connect on LinkedIn and if you see anyone on my LinkedIn list, That you would like an introduction to let me know. That could be that little piece of value that you provide to someone. Maybe you heard them say they needed some sort of resource or either a personal or professional challenge they're having, and maybe you have something to offer to them.

We're not getting together that very first time to try to sell right away. We're trying to build that relationship and people love it too. When you get to know them personally, you can just go right into selling. It's not going to really develop a strong relationship. And the other thing too, that occurred to me is one thing that can be such a success when you're trying to build up a relationship with someone to earn their trust for their referrals is to be a great listener.

And what that means is you're using all your senses to listen to them. You might be taking some occasional notes. I mean, if you're a person that's like an idea person like myself, it's really hard for me to not blurt out an idea. But if you know, you're an interrupter, like the first step to fixing the problem of being an interrupter is to recognize that you have a problem in the first place.

Self-awareness. And then some techniques to help you listen better are using all your senses. What does that a person's body language saying to you? Are they having eye contact with you? Are you having eye contact with them? It's very, very important to build trust, to be a great listener. And if all the other person does is try to constantly turn the conversation back.

I've got a one-up story on that and they try to interject. You know, they're one up story that is really going to be off putting, and it's definitely not going to help to foster a relationship where the other person knows likes and trusts you. 

Marisa: [00:21:40] Yes. And none of us are perfect. And that's why that awareness is so important because then you realize that, oh, I can improve in this area. What can I do to do better so that I can build those relationships. And also it's this gratitude factor that came to mind as you were talking because when you get a referral, it means a lot. Really, it means that person is handing over somebody important your way. It's not just about helping you, but it's about helping the person that needs your services.

And so there is this appreciation that you need to show. And whether that is simply letting them know how much it means to you or having a system in place to show them that you really do value every referral that they send your way. That is going to make them feel really good and in turn will encourage them to continue referring to you.

Beth: [00:22:33] Definitely the whole, appreciation factor for when you receive a referral. It's oftentimes overlooked by business owners and salespeople. You want to make sure you're showing that appreciation the right way too? And I want to give a funny story that you might've heard me tell this story before I had given a referral out that was probably worth a few thousand dollars that turned into business to the person that I referred. And I got a thank you gift in the mail. And at first I was like super excited, Oh, what's this package. And it's from this person I sent a referral to and I opened it up. There was a really nice card that said, thank you to the referral. It turned into being a great client that dah, dah, dah, dah, and here's a gift. And the gift was a bag of expired granola. And what if I'm gluten free? What if I can't eat the granola? What if I have a nut allergy? It's really a huge thing. If you're going to send food or alcohol, you need to make sure that the person you're sending it to will be able to eat it and or drink it.

And so I think that's something that a lot of people overlook is to be thoughtful in the gifts that we give when we do give a gift and you don't have to always give a gift. Sometimes you can just give a gift because that person sends you so many referrals and there's, someone I send a lot of referrals to and right around Christmas, I get this card in the mail and I don't know how many referrals I send to this person.

Someone that he's the only one I know who does what he does. And I know like and trust him. And so I send all my referrals for what he does over to him. And he sent me this beautiful card handwritten card and a gift card. That just blew me away. I was like, it wasn't expected. It wasn't because of one single referral.

It was just because he knows, I constantly think of him and it was totally off guard and totally thoughtful. And it was amazing. And of course, that just strengthens my connection with him. 

Marisa: [00:24:30] Yes. It's the surprise and delight factor. And going back to what you said. The thought, if you are showing the person that you know them, that you know, what they enjoy and appreciate, and you send them something thoughtful that is worth its weight.

And that doesn't mean that you can't decide as a business owner exactly what your process is and how you want to reward people. But I think just showing them that you gave it a lot of thought and that you're really grateful means a lot. 

Beth: [00:24:59] Right? Definitely. I've mentioned. He's the only one that I refer that does what he does. And there is some caution though, in when you have these professional referral partners to only have one, to have an exclusive referral relationship with just one person who does what that person does. If you only give to one, you're only going to get back from one. And so what I teach in my referral marketing workshops is identify who those professional referral partners are for you. Say you're a graphic designer. You probably want referral partners who are marketing consultants, business consultants, and things of that nature. So each referral partner is a bucket. So if I'm a graphic designer and I want to know marketing consultants, marketing consultants are in one bucket business consultants are in another bucket.

So I put these different referral partner types and I label my buckets. And then I want two to three in each of those buckets. They might have a special industry niche that they are particularly good at. They're not the Mercedes, but they're definitely quality work, but if you're on more of a budget, then there's this one.

And then there's the Mercedes with all the bells and whistles and you get what you pay for. So if you want the very, very best, the greatest and the most expertise you're going to buy this Mercedes person over here. So I try to have like two or three people in each of those referral buckets. And this gentleman that I referred to previously, the only reason I only have one in my bucket for his business category is because he's the only one I know right now that I know like and trust. 

Marisa: [00:26:35] Yes. And that's a great recommendation Beth because we're dealing with small businesses too. And oftentimes it's solopreneurs even. And so what happens if they happen to not be available? Or there's also personality that we have to take into account.

And so when we're trying to connect one person to the other, we might look at that and say, okay, what do they specialize in? How do I feel this person's going to get along with this person, not take all those things into account, and you are able to then share the referrals across the board there so that you might refer to one, one time and another person, another, depending on the fit.

So it's always good to have, like you said, several options for each industry, so that you're always able to help different people and provide resources that are a good fit. 

Beth: [00:27:21] I just think there's a huge amount of value. If you have somebody asking, do you know of a fill in the blank? Right. I know three or four of them. And I ask that person a little bit more about what they're looking for and what their goals and objectives are to being connected to someone. And then I can make a good recommendation of a couple of people. Well, I know two people who can help you with that. Here's this person and here's that person. And I'm happy to give you an email introduction to both. And then you choose who you think you would work best with. And people appreciate having a choice. Customers love having a choice. If you can give a customer a choice between this or that they feel in control, and it's more likely that they will have received the successful referral from you because you gave them a choice between this person or that person.

And so. I think it's really important to not put all your eggs in one basket and solely or exclusively refer to just one person. Because if I'm that graphic designer and I'm only referring to one marketing consultant, I'm only ever going to get back from one marketing consultant, because a lot of times these professional referral partnerships are reciprocal.

And so. It's really important to have relationships going with a few of very good ones. 

Marisa: [00:28:38] I think that there's always opportunity for so many people. We all have our talents and our areas of expertise and we're all different and that's what we bring to the table. And so I am just looking for people that I can trust that I know are going to be good sources for the people that I send their way.

And if they can take care of them and make me feel comfortable that I made the right choice that I connected the right person, then I'm super happy with that. 

Beth: [00:29:04] Definitely. Totally agree. 

Marisa: [00:29:05] This has been amazing. I learned so much as usual. No surprise. So how do people get ahold of you Beth? Share some information about how they can reach you if they have any questions or just want to reach out.

Sure. So as Live Blissed Out podcast listeners, you can actually download my 10 tips to being successful at referral marketing. And I have a special URL for you listeners i...www.sheleadsgroup/liveblissedout and you can go there and you can download this five page guide on these amazing tips, many of which we didn't even cover today on how to be successful at referral marketing.

Oh, that's fantastic. And then that way they have a resource, they can look at it and have a little guide for themselves to remind them of some of the things we talked about, and then some. 

Beth: [00:29:57] Right. And on there, there's also contact information. If anyone wants to get a hold of me via email or phone, I always welcome meeting new people and you know, if there's any questions about anything referral marketing, I just love referral marketing. 

Marisa: [00:30:12] Yeah. I agree. I think it's such a powerful way to build relationships and build trust and it's enjoyable to really, because it's so rewarding at the end of the day, whether you're receiving a referral or giving a referral, it is just such a powerful marketing method that I think is under utilized. And I think we can all learn to do better so that we can nurture those relationships and make our referral marketing a lot more impactful. 

Thank you so much, Beth, for being here today. I really appreciate it. 

Beth: [00:30:43] Thank you again, Marisa, for having me. It's been great talking to you about referral marketing. 

Marisa: [00:30:48] That's all for this episode of Live Blissed Out. Thanks for listening and thanks to Beth Boen for being my guest. If you find value in our show, please visit  www.liveblissedout.com to reach out, subscribe and share on social media. This show is made possible through listeners like you. Thank you. So long for now and remember to keep moving forward.

 

What Is Referral Marketing?
Systems
Trust Factor
Prompt Response
Asking For Referrals
The Wrong Way To Ask
Make It Easy
Why Referral Marketing Fails
Value
Appreciation & Gratitude
Buckets