Welcome back to AirSend’s Book Corner!! As mentioned previously in our other book corner post, also titled, “The Referral Engine,” we will be breaking this book into two parts. There is so much useful information from the book alone, we felt it necessary to break it into two parts. If you would like to read the first part of the review, click here. If you have already read the first part, and are anxiously awaiting our second analysis, welcome back! Before diving into our chosen chapter, allow us to give a quick refresher to what the book is about.
Refresher
John Jantsch, author, blogger, and podcast host published what we like to think as the holy textbook to marketing, “The Referral Engine.” Marketing expert John Jantsch offers practical techniques for harnessing the power of referrals to ensure a steady flow of new customers. Some of Jantsch’s strategies include:
- Talking with your customers, not at them
- The sales team is the focal point
- Educate your customers.
One of the secrets to generating referrals lies in understanding the “Customer Referral Cycle”-the way customers refer others to your company who, in turn, generate even more referrals. Businesses can ensure a healthy referral cycle by moving customers and prospects along the path of Know, Like, Trust, Try, Buy, Repeat, and Refer. If everyone in an organization keeps this sequence in mind, Jantsch argues, your business will generate referrals like a well-oiled machine. Whew, now that we have gone through the refresher portion, let’s talk chapters! The chapter we will be focusing on as part of our finale series is “Chapter Four: The Referral System View.”
Chapter Four: The Referral System View
We believe this chapter holds some very delicate and intricate points on the idea of referrals, and how to be a success at it. Throughout the chapter, the author offers his words of wisdom, along with a step-by-step outline of referral systems. Rather than telling you the step-by-step process (because that will take all day), we will briefly go over each of the steps addressing key points. We of course highly suggest reading the chapter in full for a better understanding of context. Let’s dive in.
Your Authentic Strategy
This is the first step in creating your referral system. Your authentic strategy should explain a core talkable difference. What makes your business stand out from your competitor? What does your brand say about you? After understanding and figuring out why you are the best in the business, you must then narrowly define your ideal customer. This strategy intertwines with the first strategy. After deducing your uniqueness, what customers can you market to that will also find your brand interesting? Who do you want to be of service to? How/what can your business do to help others? Once you have these two strategies down you are ready to graduate to the next step.
Core Talkable Difference
As reiterated before, your core talkable difference is the first strategy to implement in your referral system. During this process, you will also inevitably unearth your competitive advantage.
“This must be something so special that people can’t help talking about your business.”
Jantsch, John. The Referral Engine (p. 56). Penguin Publishing Group. Kindle Edition.
With AirSend, for example, we believe we stand alone in the conquest of efficiency. We strive to reach perfection with a purpose. To do that, we needed to create something that no one else could beat. Another example could be your favorite taco joint. Everybody loves this taco joint because they have a product that other taco restaurants don’t have. Are you more likely to go to a taco restaurant that has something no other eatery has, or are you more likely to go to a taco joint that has everything you can get from your local grocery store?
“One of the best ways to create an innovation or differentiation for your business is to take something people already realize they may want and need and make it even easier to want.”
Jantsch, John. The Referral Engine (p. 57). Penguin Publishing Group. Kindle Edition.
How to Create a Surefire Innovation
One thing to take note of is that we are entering an age of simplicity and efficiency. Simplicity and efficiency go hand-in-hand. Look at the technology that is being released. What we are really trying to say is that your innovation should simplify something. The market already understands the offering, and they already spend money here (in your desired field). So, what can you offer to the market that is more efficient and simple than your competitors? A market that already has funding in this desired field? Do not be daunted by this idea! Do not be afraid! If anything these questions should ignite an inner spark! Take these questions and conquer your field. Be the next innovator, not the observer.
“Much of this advice has focused on entering proven markets. While that’s absolutely the advice I’m giving here, know that you must do so with a significant point of differentiation that the market easily understands and appreciates. In most cases this can be done by looking at the way most folks in the chosen market operate and find a way to simplify your offerings around breaking the mold.”
Jantsch, John. The Referral Engine (pp. 59-60). Penguin Publishing Group. Kindle Edition.
Another key element to realize is that nothing is precious. Though we like to stick by our original ideas like they were our children, sometimes we have to adapt accordingly. Keep an open mind and study what the market really wants.
“The owner is the customer. Understanding the characteristics, desires, and behaviors of a narrowly defined target market is very hard work but essential to your success.”
Jantsch, John. The Referral Engine (p. 58). Penguin Publishing Group. Kindle Edition.
The Inbound Referral Process
From the traditional business models of hunting customers, we now enter a time era where the referral marketing system is moved from finding to being found, creating valuable content, engagement, and interaction where the ideal prospects are already looking.
“The dramatic rise in the use of search engines in our daily lives has made being found a vital element in the marketing of every type of business.”
Jantsch, John. The Referral Engine (p. 61). Penguin Publishing Group. Kindle Edition.
The Customer Network
Fully developed referral system targets two groups: the customer base (direct network) and a group made of other businesses that also serve your ideal customer, who could be motivated to partner with you in some way to exchange referrals and support your customers
The Strategic Partner Network
According to Jantsch, the real unspoken referral opportunity resides with strategic partners. In other words, using businesses to refer to you and vice versa. An example that I believe takes the cake is game stores. When you go to tabletop game stores, (from personal experience especially), plenty of staff members refer you to other similar game stores that sell generally the same product. Why? Well, I would like to think it is loyalty, but in reality, it is to keep the businesses alive. To encourage more customers/ traffic.
“By using technologies such as online Web conferencing and podcasting you can easily tap the knowledge and resources of a large group of experts and partners and make the knowledge available to your customers on demand.”
Jantsch, John. The Referral Engine (p. 63). Penguin Publishing Group. Kindle Edition.
Fulfilling The Promise
When it comes to keeping promises, rewards are almost always the best answer. Plenty of retailers follow this strategy: “refer five people and receive a $25 gift card.” By far one of the most effective ways of gaining referrals. Much like a give and take system. Of course, remember the best referrals are earned when customers do it because they genuinely want to support the business.
“After working out your motivation strategy, you’ll create a referral follow-up process to ensure that referred leads are treated with special care, and that your referral sources are shown real appreciation to keep them motivated.”
Jantsch, John. The Referral Engine (p. 63). Penguin Publishing Group. Kindle Edition.
Referral Entry Points
We have finally entered the last section of the chapter. This last section essentially is a refresher course. For starters, get this through your mind: You deserve referrals!
“The expectation mindset must pervade your entire organization—it’s everyone’s job to find leads and convert them into customers.”
Jantsch, John. The Referral Engine (p. 64). Penguin Publishing Group. Kindle Edition.
Once you finally believe that your business or profession is worth, then create two different referral approaches (check out chapter nine). One for your customers and the other for your strategic partners. Afterward, create turnkey tools.
Turnkey Tools
“Put tangible referral tools in the hands of your referral sources.”
Jantsch, John. The Referral Engine (p. 65). Penguin Publishing Group. Kindle Edition.
In other words, make it easy and accessible for your clients to refer to you. Additionally have multiple creative ways for clients to refer to you. Have a social online presence everywhere- great for versatility. Then, plan for logical collections.
“The best time to collect referrals from customers is at the point when they realize and acknowledge a good job was done.”
Jantsch, John. The Referral Engine (p. 65). Penguin Publishing Group. Kindle Edition.
Finally, after following all these steps, and having a basic outline of how your referral system should be, measure and adjust. Hardly ever do we get our referral system right the first time. Your dashboard (outline) should be used as a place that you can go back to. Much like a drawing board. Mistakes are inevitable, and you may not have the referral system you dreamed of first time around, but with time and confidence in your product and/or service, you will surely reach your goal.
“This is a place you might consider going back to your referral sources to discuss your referral campaigns, the type of ideal customer you are focused on, the best way to make an introduction to your firm, and your total product or service offerings.”
Jantsch, John. The Referral Engine (p. 66). Penguin Publishing Group. Kindle Edition.
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