| Marketing is more art than science and, as such, | | | | • determine the messages and brand attributes that |
| provides marketers a lot of latitude in what they can | | | | will appeal to the target market. |
| do. In all cases, however, what’s important is to | | | | Tools and Materials that Motivate the Referral |
| focus resources on those things that will effectively | | | | Network. It is important to equip endorsers with |
| support the sales process and help create greater | | | | material—whether based on word of mouth and/or |
| corporate success. | | | | word of mouse—that is designed specifically to |
| Traditional marketing approaches are, well, obvious. | | | | facilitate communications with their colleagues. |
| Many non-traditional approaches have been tried and | | | | Successful programs provide easy-to-use referral |
| discarded for good reason. There are, however, some | | | | tools that |
| innovative approaches that failed to win popularity | | | | • provide the information prospects need to make |
| simply because they were either too new or too | | | | an informed decision |
| complex for successful implementation. One of these | | | | • leverage the relationship between referrers and |
| too-complicated approaches warrants another look. | | | | prospects |
| Because people know that every form of corporate | | | | • enable referrers to transfer to prospects a feeling |
| marketing is biased, they are naturally reluctant to | | | | of their positive experiences with the firm. |
| readily accept corporate marketing messages. It is | | | | Finding the Right Voice. Successful marketing initiatives |
| well-documented that product claims achieve a higher | | | | adapt their messages to reflect the unique |
| level of credibility when they are delivered not as | | | | characteristics of the chosen communications vehicle. |
| “pitches,” but rather as endorsements from | | | | For example: |
| trusted corporate spokespeople. Celebrity | | | | • Salespeople interactively provide their most |
| endorsements have proven an effective—although | | | | compelling case to convince and close their prospects |
| extremely costly—approach for companies of all | | | | • Advertising focuses on reaching a large number |
| types. The challenge, therefore, is to find a better, | | | | of prospects and communicating important benefits |
| readily accessible and much more cost-effective way | | | | • Public relations emphasizes the most newsworthy |
| to secure that same kind of endorsement credibility. | | | | aspects that will attract the attention of the target |
| We believe that satisfied clients can provide powerful | | | | audience |
| third-party endorsement for a financial services | | | | • A referral program needs a “story” to |
| organization. The key to launching this potent | | | | make its messaging effective. |
| “salesforce” is a focused referral program. | | | | The development of an effective referral |
| Properly schooled and incented, satisfied clients can | | | | “story” begins with an analysis of the |
| positively influence prospects and produce significant | | | | decision-making research. Where do prospects |
| incremental business. However, implementing a truly | | | | generally encounter obstacles in the decision-making |
| effective referral program can be a complex and | | | | process? What arguments will successfully overcome |
| rather involved process. | | | | marketplace objections? |
| What Makes A Successful Referral Program | | | | The resulting story must contain compelling claims, |
| The Ability to Influence Decision-Making. The goal of a | | | | credible promises and benefits that resonate with the |
| referral program is to accelerate a prospect’s | | | | target markets. It must also engage endorsers and be |
| decision-making process. Research has proven that | | | | short, interesting, convincing and easy to communicate. |
| the product with the better decision support | | | | Above all, since—as with every other aspect of |
| system—rather than the better product—very | | | | good marketing—success follows truth, an effective |
| often enjoys the competitive advantage. When | | | | story must appropriately manage expectations. |
| prospects have the necessary information, they can | | | | The Bottom Line |
| shorten the sales cycle by making decisions more | | | | A well structured referral program can help an |
| rapidly and with more confidence. | | | | organization cut through marketplace clutter and |
| Therefore, the first step in the development of an | | | | accelerate prospects’ decision-making. By turning |
| effective referral program is focused market research | | | | satisfied clients into endorsers, a company can create |
| to gain understanding of the decision-making process. | | | | a genuine “salesforce”—beyond a size ever |
| The goal of the research initiative is to | | | | imagined. Given the proper time and attention, a |
| • map the series of critical steps in the decision | | | | referral program can not only deliver spectacular |
| cycle that motivates a prospect to choose a financial | | | | results, but also become a responsible and lasting |
| product or service | | | | means of increasing sales. |
| • identify the targeted market’s values and | | | | Copyright 2009 Suasion Resources Inc. |
| priorities | | | | |