Why Referral Marketing Is Effective
When you have a fully operational referral marketing plan in place, you can estimate how many recommendations you may anticipate and the quality of those referrals. True, you won't know who you're selling to or how big the purchase will be, but that's true of virtually any marketing approach. However, one mistake to avoid is focusing exclusively on the sale. You'll lose out on the details of how that sales opportunity got to you if you do this. A few years back, one member of a referral networking organization (we'll call him Frank) chose to quit the group despite being a well-liked company owner who had gotten many recommendations. When asked why, Frank said that the recommendations he got seemed to be random occurrences and that his customers could not be duplicated. He had the impression that the organization was not serving him well. Plus, he'd been acquiring so many new customers that he said he no longer needed the group. When questioned about the new cust...