How to Create a Referral Engine

Source: Accounting Today

According to author Gary Boomer, the firms that are successful in generating referrals are those that focus on exceeding client expectations. Achieving exceptional outcomes makes it easier to ask for referrals. Referrals reduce or eliminate the need to compete on price – the relationship between referred prospects and the clients that refer them reduces their risk, so prospects are willing to pay a premium.

To develop an effective referral strategy, firms should shift their marketing focus from the Four Ps – products, pricing, place, and promotion – to the Four Cs:

• Content – blogs, white papers, and other information that educates clients,
• Context – aggregating and filtering the vast amount of information available and customizing it to a prospect's situation,
• Connection – using social media and other tools to establish connections, and
• Community – taking advantage of social media and other technology to create communities that aren't limited by geography.

Firms that emphasize all four Cs, Boomer says, “tend to blend high-tech and personal relationships into creating a firm with a referral engine. This approach creates trust, shortens the sales cycle, demands premium pricing, and expects referrals from every relationship.”

For the complete article, read “The Referral Cycle.”

From Accounting Today, May 1, 2011, SourceMedia Inc., One State Street Plaza, 27th Floor, New York, NY 10004, 800-221-1809.