Archive for Referral Marketing

One of the real underutilized opportunities these days is to use your online presence to drive local offline sales.

Call to ActionIn order to do this you must think beyond the content aspects of your website and start to think about ways to tap local buying behavior and enable local buying tools.

The heart and soul of this kind of thinking is the tried and true call to action. Marketers have been using the simple act now, buy now, call now language to get prospects to take all manner of action since the dawn of advertising.

As Internet use has become the primary way that even local shoppers find information and make buying decisions, it’s become essential for local businesses to integrate local calls to action into their websites.

It’s easy to think this is something that only restaurants and salons can take advantage of, but with mobile and search use so high almost any type of business, even professional services, can benefit from this idea.

Example calls to action

Free pass

Let’s say you have a membership type of offer like a gym. Put a “get a free pass” button and form on your site so that you can put a free trial offer in their hands before they come to your door.

A financial planner could use this same approach for a upcoming seminar on investment advice. Or you could allow customers to grab a “bring a friend” pass for an early bird sale.

The easiest way to handle this would be a button that linked to a print friendly web page, but you could also use a form so you could capture a little info and send the pass to their mobile device.

Coupons

People love coupons and coupons certainly drive sales. This is an approach you can update and rotate with all kinds of new products, sales and sample offers.

A restaurant could place a coupon for a free appetizer on Tuesday night, but an insurance sales person could also place a coupon for a free iTunes card with every rate quote.

You can create your own trackable coupons through services such as Coupontank and don’t forget to use the coupon feature on your Google Places page as well as locally focused networks such as Local.com and Craigslist.

Click to call or chat

Many times people that come to your website either don’t immediately find what they are looking for or wonder whether you have that cute little dress on your homepage in their size.

By adding services like LivePerson, BoldChat or Olark you can make it very easy for people to call or chat with your business and get that one piece of information they needed so that they jump in the car and come into your business.

Schedule now

Businesses that run primarily by appointment must start making it easier for today’s mobile enabled customers to book a time on the fly. This means adding appointment booking functionality to your website so that prospects can schedule when it’s convenient for them and see that you have that perfect spot open in two hours when they are free.

There are a number of click to schedule tools like ClickBook, GenBook  and Schedulicity.  Or use the tool set from a service like Agendize that allows you to add call, chat and schedule options all from one tool.

Driving call to action

In addition to you creating compelling offers and tools you’ll want to promote the fact that you have openings, coupons and special.

Pay per click – Using locally focused Google AdWords in conjunction with your call to action is a tremendous way to get terrific offline bang for your online spend.

SocialFacebook has a very robust local targeting mechanism that offline businesses have been using along with strong offers to act. You can also use tools like the Wildfire app to create calls to action right on your Facebook page.

Don’t forget to Tweet your Tuesday offer and drive customers to your site to get their coupon.

Today I’m speaking with a group of small business owner that want to know about how to develop a marketing strategy that truly allows them to differentiate what they do from others.

Cubmundo via Flickr

I wrote recently about how to find your point of differentiation by seeking clarity and you may find that post a perfect compliment to what I am going to share today.

To me getting clear about strategy is the most important challenge business owners face and I’m going to challenge them first to look inward. I’m going to ask them to choose a marketing strategy that is infused with who they, why they do what they do and how to use that story to attract opportunities and clients.

But then I’m going to give them a very specific set of tactics to put their strategy into action and on display.

Every industry group feels that their business, their needs, their way of marketing is unique – that they are the only ones that must rely on word of mouth or referrals. While every industry has a unique set of clients, a unique language, maybe even an unusual distribution model, the way that customers come to know, like and trust them is fundamentally the same.

Today, specifically, I am going to introduce this group to a core set of practices that every business can use to communicate their simple, clear, marketing strategy.

Build and tell stories – You must develop a set of core stories that you use in your business building. The stories that help people understand how your business is different, not because of what it does so much, but because of what it cares about or doesn’t do.

These stories must radiate from you, your staff, and your community and will ultimately make up the foundation of your brand promise.

Sell by teaching – You must commit to using education as your primary means of influence. This is one of the most powerful ways to differentiate your business in the eyes of those that come to work for you as well as those that comes to experience your unique point of view through exposure to your teaching.

When you embrace teaching in everything you do, your staff begins to understand that the company is their first customer.

Become a platform – It’s no longer enough to think in terms of building a product or service. In fact, it’s no longer enough to simply build a community of prospects, users and buyers.

In order to truly differentiate you must begin to think of your business as a platform for others to get what they need. You must expand your thinking from business to marketplace.

Can you create opportunity for strategic partners? Can you teach others how to launch businesses from your business? Can you mentor employees and become a hub for their personal growth?

These are questions that will take you far beyond the typical business building mindset, but the answers may become the higher purpose for your business.

Reverse the experience – Finally, I’m going to suggest that the greatest way to deliver a remarkable marketing strategy is to deliver a remarkable marketing experience before, during and after a customer is a customer.

I’ve shared my concept of the Marketing Hourglass now with tens of thousands of small business owners, but only recently have I determined that the best way to construct any product or service experience with this tool is to do it in reverse.

To borrow from a well-worn bit of wisdom, if you want to deliver an exceptional experience you must start with the end in mind. You must begin the entire process by considering what you will do 90 or 180 days after you make a sale and then work backwards to the point where you first meet.

To some these ideas may feel foreign and not at all like a substantial way of doing business, but to others they will ring true and real and perhaps for the first time they will be able to differentiate their business with perfect clarity.

Backup online dataI know you’re backing up your hard drive and network data, right? You use Dropbox, Carbonite, MOZY, AmazonS3, or JustCloud. Or maybe you’re a Mac Time Machine junky. Either way, here’s hoping beyond hope you’re doing this regularly.

Of course, now that so many of us are moving stuff to the cloud, we’ve got an increasingly perplexing new issue.

How do we back up all that stuff that sits on someone else’s sever?

Do you remember a while back when a whole bunch of Gmail users woke up and found their email files wiped out? We can argue whether or not that’s a good thing, but I’m guessing there were some really important emails that went missing.

Okay, how about this one – you fire up your WordPress blog and discover that your low cost host has decided to go out of business and take your SQL database (otherwise know as you blog posts) with them. (I suppose this could happen to your really expensive web host too, but you get the idea.)

And one last illustration to strike a little more fear. You fire up Basecamp in hopes of finding that critical contract your client signed and uploaded only to find a blank project folder. (Basecamp is an awesome product and I’m sure this would never happen, but what if it did?)

See, we’ve come to depend on all these tools, services and stuff that we routinely and perhaps a bit naively imagine will always work, sync and be safe.

I believe we all need to start looking into some redundancy in our backing up. You could make a case for having an external drive and Dropbox or Dropbox and Mozy for your regular backups, but the real gap may be in backing up all those services.

Here are couple services that are designed to help you do just that.

Backupify – allows you to create regular backups of all your social media updates, email, calendars, Google docs, and photo sharing sites. They even have a plan that’s made for Google Apps for Domains users.

CloudHQ – If you’re already a Basecamp, Dropbox and Google Docs user you’re going to this CloudHQ was built just for you. This service syncs and backs up all your Basecamp data, backs up most of your cloud data to Dropbox and really enhances collaboration using Google docs with Basecamp syncing.

BackupBuddy – It’s just a really good practice to routinely backup your WordPress blog. BackupBuddy is a plugin that can be set to make automatic backups to S3 or even Dropbox. I use Rackspace for hosting and they have a cloud backup tool as well.

I know this just one more thing to worry about, but once you set it up and automate it, it’s actually one less thing to worry about!

One of the central elements used by many companies to help simplify and tell what the company stands for in a way that generates commitment is through a list of stated core values or what I call Commitment Beliefs.

Jeff Kubina via Flickr

Now, it’s quite possible you’ve worked for an organization that’s hung a list of impressive sounding attributes on a wall somewhere and said here’s what we stand for. Maybe you’ve done this in your business.

Of course, for this to be anything more than an exercise you have to live your beliefs. That’s why stories are so important; they become tangible illustrations of what’s real.

Funny thing is every company has a set of core beliefs – some positive, some negative. It’s a lot like your brand, you can’t really hide it or fake it because ultimately is comes through in who you’re being, how the leadership team treats employees and customers, how you respond to adversity.

The key to tapping and leveraging your core beliefs is to find a way to capture the best of what your organization stands for and create, instill and live those things as often as you can.

The process of uncovering a set of core beliefs can be a little frustrating and highly personal, but what about generating purpose isn’t?

Create

The key to creating a great list of commitment beliefs is to throw off any notion of what they should be and simply brainstorm a bit about the best traits of your organization. Think about your people. Who on your team embodies what your company stands for?

Gather your leadership team, even if that’s just you, and spend some time pondering attributes that feel right, that inspire, that you’ve seen and heard used by staff and customers and record as many as you like. I know this will sound a little corny to some, but you’re looking for words and phrases that have to power to send a chill through the room.

You might even consider including a handful of customers in this exercise. Ask them to describe what they experience as a customer. You might be surprised how insightful some of their comments are.

Once you have a list that seems comprehensive it’s time to start paring it down to the most essential elements that are true beliefs. There is no perfect number, but as you move to make these beliefs the foundation of your message and story, there’s a case to be made for less is more. Strive for six or seven candidates for the final list.

Once more for emphasis. This is not a list of what ought to be or what sounds impressive. This is a list of what is, even if what is today isn’t as fully developed as you know it can be.

For example here’s a list for my organization

  1. Practice your magic – do what you preach
  2. Simplify everything – elegance over complexity
  3. Extend trust – give what you need to earn
  4. Make progress – failure is okay
  5. Everyone leads – teach and learn
  6. Create more – the value equation
  7. Be a gift – love each other

The idea behind these 7 elements is that we try to live them in our interactions with each other, our customers and the market as a whole – they become what we communicate as elements of our brand, but more importantly we use them to make decisions individually and as an organization.

Instill

Appletree Answers, a professional telephone answering service and call center headquartered in Delaware, has distilled their list to the following elements with detailed descriptions attached to each:

  • Employees are Critical
  • Think Like a Customer
  • Integrity Matters
  • Small Details are Huge
  • Be Quick, But Don’t Hurry
  • Take Care of Each Other
  • Spirited Fun

Company founder John Ratcliff admits that after creating the above list the elements remained little more than words on paper until he started finding way to drive them home repeatedly.

Ratcliff and other key leaders routinely visited Appletree’s eighteen locations to meet with staff employed there. Ratcliff started challenging members of these gatherings to recite the seven core values. He offered a $20 bill to the first person who could do it.

After seventeen meetings without a winner, a young man jumped up and recited the list verbatim. Ratcliff was so please he reached in his pocket and pulled out what ended up being $100 bill as a reward. Word spread quickly soon after and now everyone in the organization can readily recite the organization’s core values upon request.

Of course simply paying people to get closer to the words chosen to represent the core values isn’t what makes the pay for Appletree, it’s the shared language and actual decision making that’s come about through repeatedly emphasizing this set of words.

The core values show up everywhere at Appletree, including on applications completed by potential new hires.

Live

The thing about anything you state as true, it’s your actions that make them so.

All the brainstorming sessions, all hands meetings and bronze plaques in the world won’t bring any life to your stated core values unless you live them and reinforce them in your everyday acts and decisions.

Your commitment beliefs must become part of the story that employees share with each other, with customers and with new hires.

Committing to this practice can prove to be expensive in the short run, but pay huge dividends in the long run.

Ratcliff recounts a story about an employee that was found to be effectively stealing through various practices of manipulating lead sources and falsifying reports. Appletree immediately let him go, but was faced with a bit of decision after a large sale that the employee had worked on came through creating a commission of several thousand dollars.

“We knew that no one in the organization would have faulted us for keeping that commission, but that was the point. The money was due him and in accord with our ‘Integrity Matters’ belief, we determined paying him was the right thing to do.”

Ratcliff claims that writing that check was hard at the time, but doing so did more to bring life to the plank of integrity than any amount of words could do.

So, have you crystallized your commitment beliefs? Care to share how these beliefs impact your organization?

First off I want to apologize to anyone who came to this post expecting to hear about some new secret tool or approach for gaining Facebook fans.

The reality is that you make social networking pay the way you’ve always made networking pay – by focusing on two things – who you can help and who can help you. (If you find that you initially recoil a bit at the bluntness of that statement, I’ll explain it in a way that may help.)

Image linus_art via Flickr CC

Now, if you accept that my basic networking statement is true, then you must surely also come to the realization that it’s not a numbers game – well, actually it is, but it’s not a “get lots of followers game.”

If you are going to limit your networking to those you can help or target and network with someone that can help you, you’ve got a real capacity problem.

See, in order to do either or both, you must actually get to know something about the hopes, dreams, goals and objectives of the person you’re trying to network with and you can’t do that with a “follow” or a “like.”

The surest way to make social networking pay is to build deeper relationships with fewer people. Likes and follows and witty tweets may create awareness for your brand and open doors for actual networking, but nothing can deliver the payoff of actually helping someone else get what they want or connecting with someone who can help you get what you want.

But here’s the really interesting thing about this point of view – you accomplish both – helping people get what they want and connecting with those that can help you get what you want in exactly the same way – and that’s by giving.

Here’s your 2-part assignment for the next month.

1) Identify five people that you know you can help and that you would appreciate your help and reach out and offer to do something very specific to help them with your only goal being to raise them up a bit and start to build a relationship based on giving.

2) Identify five people that you know can help you achieve an objective this year and reach out and offer to do something very specific to help them with your only goal being to become a resource and start to build a relationship based on giving.

Sure, all that helping people get what they want might cut into your tweeting, but by building fewer, deeper, stronger, authentic relationships in this very manner you can make your social networking efforts pay off royally.

My friend David Meerman Scott just released an all digital book called Newsjacking: How to Inject your Ideas into a Breaking News Story and Generate Tons of Media Coverage.

newsjackingThe idea behind this very quick read is to involve your brand in some breaking news story using real time tools to garner some of the publicity by being a part.

Here’s my take – this book is not for everyone. In fact, many people should not read it because the tactics Scott talks about require a great deal of strategy, subtlety and grace to pull off effectively. There are many pitfalls to newsjacking done wrong and I suspect many people will misuse Scott’s message and means.

Scott gets how to do this like few do and he’s studied both the good and bad, but make no mistake this is both a powerful and legitimate tactic only for those who use great restraint and know how to strategize on the fly – if that’s you – you need this book.

The title to this post should stop and make some business owners question a few things.

Things like – I’ve never really thought of my employees as a referral source. I don’t know if my employees know how to refer me, or worse, I don’t know if they know if they would refer me. Or maybe you’re thinking, I wonder if there’s a way to get my employees to refer prospective team members?

Your current employees, like your current customers, are more suited to refer, or not refer, your business than any other group.

So, would your employees refer you? Do they act as a primary referral source for both customer and new employees? If not, why not?

There are really only two reasons that people don’t refer – employee or not. You don’t deserve referrals, and your employees are most often the group that knows this best.

Or, you’ve not communicated your expectation referrals and not taken the steps to educate and equip your referral sources – employee or not.

So, what have you done to motivate your staff to join in the game when it comes to referrals?

Over the last couple of weeks I’ve had three separate occasions to talk to small business owners about referrals. (The most recent in Brazil for the launch of the Portuguese version of The Referral EngineMáquina de Indicações)

Referral Motivation

KiltBear via Flickr

In each of these sessions I was asked about the best way to keep referral sources motivated and, more specifically, if you should pay for referrals.

My answer in each case was this. I believe that the key to motivating your referral sources is to first understand why they refer.

In a perfect world your referral sources are motivated to refer because they believe in your company and they want to help the person they are referring receive some of the same value that they have already received from your company.  This is what I call a referral for social reasons.

When you offer payment for the act of referring you turn this social act into a financial one. That may be okay in your particular instance as long as a financial reward is the thing that truly motivates your referral sources.

When a referral source is motivated by a true belief in the value of what you have to offer, they will always be a much more potent representative of your brand to their friends, neighbors and colleagues.

Think about this for a moment. If someone was raving to you about a company you should try and then they disclosed that if you were to in fact try that company they would get a cash reward for referring you, would that change how you viewed the information they shared about the company?

During one of my presentations a young woman told a story about a company that she had done business with. She had a very positive experience and over time became a great source of referrals for this company.

The company decided to try to create more referrals and sent her a letter telling her that they would pay her $10 for every referral and all she had to do was upload her entire contact list.

She went on to say that this approach actually turned her off to the point that she was no longer interested in referring business to this company. Her motivation was purely one of the joy of sharing something she found with others that occasionally needed it. This companies’ failure to recognize that not only cost them future referrals it cost them a strong evangelist.

Understanding your client’s referral motivation can be a tricky thing. You have to strike the perfect balance in order to keep your referral sources active, while presenting a logical reason to be so.

If you can create referral messages and campaigns that match the motivations of your most active referral sources and keep the idea of referral generation close at hand it can pay long-term dividends.

The answer to perfect blend of motivation may be as simple as asking your customers.

I once worked with a remodeling contractor that had a long-standing referral policy of paying $1,000 for each referral. In a series of meetings with past clients we learned very quickly that the money was not a motivating factor at all, and, as I suspected, was actually a deterrent to active referral participation.

Remodeling a home is not for the timid and these very happy clients did not refer this contractor lightly. If they told a friend they should use my client’s services they did so emphatically and without reservation, but they did not do it for the money. They did it because wanted to help a friend avoid the headache of choosing the wrong contractor. They certainly did not want their friends to they did it for the money and in some cases asked the contractor to give it the referred friend or donate it to a local charity.

So, we wanted to know what would be a creative way to keep them thinking about my client when it came time to refer. What would be a reward of sorts that they would brag about receiving to their friends?

As it turned out several clients told us that what they really needed more than cash was a carpenter. What they could really get excited about was the use of a carpenter for a day to fix all the little nagging household projects that never seemed to get done, but were really too small to get someone to come out and do.

It’s funny but their “Carpenter for a Day” referral program actually cost the contractor far less to implement, but seemed to strike the perfect chord with their clients. It still allowed them to refer for social reasons, but the payment felt more like a show of appreciation and was something they gladly shared with their friends.

In fact some talked about this little perk as much as they did about the remodeling process.

My belief is that if your first choice in creating a referral program is a straight monetary reward then you probably don’t understand enough about the real value of your products or services or the thing that truly motivates your clients to tell others about you.