Nine step referral program

01 December 2010

Why would you expect someone to enter a referral relationship with you until they know you well?

It’s basic human nature to take time to build trust and understanding, both of which are key to any effective relationship, including a referral relationship.  The following nine step process has been designed to guide you through the key steps required to build an effective referral relationship.

Step 1: define your ideal client

You need to be able to say clearly exactly who you are looking for. For example, is it ‘mums and dads’, small business people with their own SMSFs, delegator retirees or young professionals with excess income?  

Step 2: create your client value proposition (CVP)

What will you offer your ideal client and why should they do business with you? Make sure you draft this in the language of client benefits.

Step 3: identify suitable referrers

Create a list of alliance partners to contact.  To help build this list you can ask your top ten clients – those with whom you have a good relationship – for the name of their accountant, mortgage broker, insurance broker or solicitor. Ask questions and do some research to find out whether they are good match for you in terms of business size, target clients, culture and location and then ask your client for an introduction.

Step 4: ensure your systems can track client progress

Keep your alliance partner in the loop! A regular report that tracks how clients are progressing is vital for maintaining your alliance partner’s confidence and trust.

Step 5: develop your pitch, relationship and sales collateral

Create you marketing and training material before you meet with a potential alliance partner.  If you are well prepared, you will create a much stronger first impression and have the tools you need to create a solid relationship.

Step 6: contact potential alliance partners

Ensure you contact the decision maker first.  Explain why you have selected them to build an alliance or joint venture between the two businesses.  Schedule a meeting in their office, and bring your pitch collateral.

Step 7: hold planning meetings

A meeting without an agenda is like a ship without a rudder – don’t expect to get to where you want to go!  And make sure you ask your alliance partner what they’d like to add to the agenda, so you can be prepared to address their key questions or issues effectively.

Step 8: training meetings

Agree a series of training sessions for all personnel who have client contact – not just the senior ones.  Outline a clear and robust referral process that will be easy to initiate and also achievable.  Make sure they are able to accurately and effectively position your business with potential clients. 

Step 9: ongoing relationship management

No relationship is so good that it does not require ongoing care.  Remember the ’Law of Recency‘.  Most alliance partners will be busy running their businesses, so you need to stay in touch regularly.  And remember the ’Law of Reciprocation‘: be proactive about adding value to them first!

Once you have worked carefully through each of the nine steps, you should have started to build a strong, two-way referral relationship - and you will be on your way to seeing a regular flow of ideal clients coming your way.

Contact Macquarie Practice Consulting for help with implementing the nine step referral program into your business.

About Macquarie Practice Consulting

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