How To Develop A Bullet Proof Strategy To Identify Individuals and Fields For Your Referral Network

Referral programs are beneficial for virtually every type of business. If you have a law firm, your bread and butter is a steady flow of new clients, and a strong referral program ensures that you have these clients coming in from multiple sources.

What Is a Referral Program?

A referral program is a defined process for rewarding your existing clients for referring your business to their social contacts, such as their family, friends, coworkers, and acquaintances. Essentially, this is a formal version of word-of-mouth marketing,

Referral programs are highly effective and authentic forms of marketing that offer a clear return on investment. They have:

Transactional value, since the referrer and the person being referred are both rewarded for the interaction. This may be with discounts, coupons, cash-back offers, rewards points, free gifts, or other incentives.

Authenticity, because existing clients are at the forefront of referrals. They speak about their own experience with the product or service, and if they’re satisfied enough to make a recommendation, their social network will believe they’ve had a good experience.

Trust, because advertising that comes from the business directly may not be reliable, but a referral comes directly from a real-life client. These clients carry more influence and have an inherent trust, which is why their peers are willing to listen to their recommendations.

Referral programs don’t have to be limited to current clients. You can leverage your professional network and complementary – but not competing – businesses to help you build your client base. Here are some common referral advocates.

Clients

These are the best type of company advocates. Your current, past, and prospective clients are not part of your business, so their support is more genuine and influential to others.

Expand your reach beyond your current clients and consider your past clients as well. Even if you haven’t spoken to them in a while, they probably haven’t forgotten their experience. If you provided good service and a good impression, they’ll likely become referral sources for your business.

Prospects can also be helpful for your business. Even though they’re not your client, they may have a different reason and still enjoyed their experience with your business. They can be used as a referral for others.

Family and Friends

Your own personal social network is a gold mine for referral sources. Presumably, your family and friends would come to you if they needed your services, provided there’s no conflict of interest, and they’ll be happy to recommend you to others.

If you have family or friends working for you, they’re also a part of the company. They will be passionate about the business and will be dedicated brand advocates for your referral program.

Company Staff

Staff members know all there is to know about a company, and they can be powerful brand advocates. They love their jobs and can answer questions, making them valuable for referrals.

Consider options like:

• Your marketing team, who has both knowledge and passion for the brand. They have in-depth knowledge of clients at different stages of the sales funnel and understand the unique decision-making processes.
• Your sales team, who has the task of bringing in qualified leads and reaching out to prospects. The sales team can generate more leads and build a referral network with professionals in complementary industries. Then, both businesses can benefit from referrals.
• In a large organization, human resources, customer service, and other departments can be part of a referral program. Like the marketing and sales teams, they understand what you have to offer and be proud advocates.

Business Partners

Charities, organizations, and other companies with an affiliation to your company may be able to influence purchasing decisions. Successful partnerships are prime for referral programs and both parties benefit from the relationship.

Here are some questions to ask to determine the best referral sources:

• What companies have complementary products with overlapping audiences? For example, a prenuptial agreement lawyers may benefit from a referral partnership with larger law firms that can pass smaller cases to them.
• Do your target clients interact with these partners in a professional capacity?
• What associations do your target clients belong to or trust?
• Are there any purchases that happen in coordination with yours? For example, a client at a beauty salon may purchase spa treatments.
• Do you have existing resellers who can collaborate?

Referrals with business partners can be easier to obtain because both parties benefit from the partnership and serve clients better. With the previous example, a roofing contractor may be doing work on someone’s house and the client mentions that their yard needs some cleanup or drainage.

This is a prime opportunity for the roofing contractor to mention the landscaper, generating business for them and serving the client’s needs. The client no longer has to research and consult with numerous landscapers, since they have a recommendation from someone who did good work and they trust. In turn, the roofing contractor benefits from the reward of the referral program.

Influencers

Influencer marketing is a powerful form of word-of-mouth marketing. These are professional advocates who extend a business’s reach to a broader but targeted audience, based on their industry. You can facilitate relationships with influencers through social media by reaching out to them for a partnership or collaboration.

Using influencers isn’t cheap, however. You need to consider your marketing budget and the effort to bring in an influencer. Make sure that the return on investment is worthwhile for a professional brand advocate.

Key Components of a Successful Referral Program

Once you find your referral sources, you have to outline a strong referral program to reap the benefits. It should include:

• A strong product or service and an excellent customer experience and track record
• A written referral program with automated rewards, if possible
• An attractive incentive, such as a free gift, a discount, exclusive access to a new product, or financial rewards for both the referrer and the referred

Start Your Referral Program

Referral programs offer an authentic way of attracting new clients and keeping a steady flow of business coming your way. Once you identify your possible referral partners, be sure to build your referral program to start reaping the rewards.

Author Bio:

Maxwell Hills is the founder of Hills Law Group, a premier Orange County divorce lawyer law firm with a concentration on high net worth divorces. Max’s entrepreneurial career stretches back to his teenage days when he had his music used in Grey’s Anatomy and ESPN. Today, Max has used that experience to build Hills Law Group with 0 customers and $0 in revenue to a respected firm in the industry.