Some believe it is a status in business to achieve.  . . . → Read More: By Referral Only]]> A popular theme these days in the business world is saying that you are a “by referral only” business or that you concentrate on “word of mouth” marketing.  Now what does by referral only actually mean?  There are a few different schools of thought.

Some believe it is a status in business to achieve.  It provides a feeling of exclusivity and doing any sort of  marketing would be seen as tainting this “club” of sorts.  Members of this club focus most of their attention on going to networking meetings with the goal of building  a power circle that will refer to them on a regular basis.  In order to make a strategy like this successful, one must constantly be in front of those with the power to refer.  Referrals in this strategy can ebb and flow depending upon the whims of whichever networking groups the business professional belongs to.

There are others that believe the only way to achieve a by referral only business is to have a strategic marketing plan.  These business professionals build relationships with past clients and referral partners through various marketing methods such as newsletters, e-zines, cards, letters, small gifts, and more.  Through systematic means, they are able to obtain predictable and track able referral results.

Now, what about word of mouth marketing?  It can be a great tool, but I caution you that on its own it is very dangerous.  Why?  Because of the telephone factor.  What is the telephone factor?  The telephone factor is the result of every game of telephone we ever played as a children.

You remember how someone would start with one phrase and by the time it made its way around the circle it came out completely different? Well, when one depends upon word of mouth advertising as their only marketing tool they are in a sense tempting the fates of the telephone game.  Someone is bound to completely wreck your message.  It is the nature of humanity.

But is word of mouth advertising completely useless?  No, but it should be the by-product of your marketing and should be delivered in a carefully crafted message time after time so that the person trying to help you out knows exactly what to say about you.  Otherwise it can do a great deal more harm than aid.

Those who believe word of mouth advertising and being by referral only are a realistic alternative to a well thought out marketing plan that is strategically implemented are losing out on a great deal of potential profits.  Much like an ostrich sticking its head in the sand does not make it invisible, saying that you are by referral only does not make it so if you do not have a strategy to build those referrals.

You sigh in frustration as you once again try to get someone who has absolutely no clue to understand the ins and outs of the . . . → Read More: What is it that you do again?]]> Have you ever had this question?  It usually comes from Aunt Mildred at the family reunion.  And the sad part is, the same conversation has taken place every year.

You sigh in frustration as you once again try to get someone who has absolutely no clue to understand the ins and outs of the widget business.  Ten minutes later Aunt Mildred politely pats your hand and says, “That’s nice, honey.”  She then trudges away, walker in hand to find the dessert table.

What happened?  Is it that Aunt Mildred is just dense and doesn’t understand anything about business?  While that may very well be the case, more than likely you just bored her stiff with all the details of the widget industry and through her boredom she became overwhelmed and didn’t understand a word you said.

Now, let’s change the scenario and the question a bit.

You walk into a networking event.  Right away Joe Salesman walks up and introduces himself.  He then asks, “So, what do you do?”

Now, before you start launching into your 10 minutes shpeel again, let’s think back to Aunt Mildred.  Aunt Mildred loves you dearly and has a reason to listen to you…but you still bored her out of her mind, so maybe we should change the approach, because no offense, but no one really cares what year your company was founded or any of that crap unless they ask.

So, back to the networking scenario…what are you going to say?

Let’s dissect it.

1) What is a common need or pain that the majority of your clients have and that you fulfill?

Now this should be fairly easy.  Just ask yourself why people need your product.  Does it get them out of debt?  Does it provide safety to their family?  What is the pain or fear that drives your customer?  When you discover that you are 9/10 of the way there.

2)  What makes you different than other companies that address the same need?

Okay, before we get into this I need to bring up one of Matt’s biggest pet peeves.  Platitudes.  A platitude is something that should be obvious or expected.  For example, almost every business out there says that they are honest and on time.  Well, I should hope so.  That is like saying, “Congratulations, you didn’t steal from me today.  That means you are a great company in my book!”  Come on!  Really?!? Do you really want your customers saying that about you?  Then don’t put it in their minds!

So, again I pose the question, “What makes you different from other companies?”  Maybe it is that you use only natural materials, that everything is hand made, or that you only use your own staff- not contractors like the rest of your type of companies.  Now, those will set you apart.  Why?  Because by saying these things you have not only stuck out in your customer or prospect’s mind, but you have made it seem as if anyone who doesn’t do it that way is wrong.  So you have set the new buying criteria.

3) Who traditionally buys your product?

This will help you in networking especially, because that person will know who you are looking for.  It will also help in the sales process, because it is a form of “social proof” which will need to be a post in and of itself.  Keep it short and sweet, maybe 1 or 2 different niches.  This will enable the prospect or referral source to remember what you are saying and won’t confuse the message.

4) Now put it all together in 30 seconds or less.

Do you like it when someone stands there and talks at you for 5 minutes?  No!  So don’t do it!  I know you are saying, but what if I am missing an opportunity to sell to this person?  I guarantee you that if you stop talking at people you will increase your sales, not decrease them.

If you just stand there and spill your guts to them for God knows how long, you have done nothing more than talked to a brick wall.  Where if you give them just a few tasty morsels of what you have to offer, they will want more, and they will walk away actually understanding what you do.