This book is about referrals, but it offers much more than just
another set of tips and tricks for generating new leads. The Referral
Engine offers a systematic approach to generating word of mouth
as a comprehensive marketing strategy. In a larger sense, it proposes a
new and better way of doing business.
There was a time when marketers would simply create a product
or brand, broadcast a compelling message, and send the sales folks
out to hunt down new business. Over the past few years, in large part
due to the explosion of online tools and networks, customers and prospects
are now active participants in the creation of products, services,
brands, positioning, messages, and subsequent buzz—for good or bad.
This book will show you how to craft a strategy that compels customers
and partners to voluntarily participate in your marketing, to
create positive buzz about your products and services to friends, neighbors,
and colleagues. While it may feel a bit odd to suggest that you
can actually compel someone to perform a voluntary act, you’ll find
that the pull of a fully developed Referral Engine is so strong that your
brand supporters will feel as though they have no choice but to sing
your praises.
One warning before we begin: Building the ultimate referable business
is not a weekend project. It will require you to look at your business
and marketing in an entirely new way. If you come along for this ride, you will need to completely rethink your current marketing strategy,
dispense with much widely accepted business “wisdom,” and possibly
alter the foundations of your business model.
I’d like to share a little experience of my own to help get you in the
Referral Engine frame of mind.
One day my wife and I hit a sale at the outdoor gear retailer REI.
During the trip she found a coat that she loved and bought it. A few
weeks later, we went to an outdoor event and she took the opportunity
to wear her new coat. As we went out the door she reached into the
pocket and found a little slip of paper.
She pulled the slip out fully expecting something along the lines of
“Inspected by #48.” Instead, the note read “You are a goddess!” That
simple, unexpected message made her day. Of course, we both wondered,
who made this coat? I checked the manufacturer’s Web site and
discovered a very cool little garment company called Isis (www.isisfor
women.com), located in Burlington, Vermont.
This creative act, unrelated to the quality, cut, or color of the coat
in question, compelled us both to think fondly of this company and voluntarily
refer them to anyone who would listen. Something I’m doing
right now.
Let’s get started on your Referral Engine, shall we?
CHAPTER 1
The Realities of Referral
Despite what some might suggest, there are no real secrets in business;
only truths you haven’t yet figured out how to apply. This
book will help you move these truths into the realm of execution—
the place where innovation and action come together to make growth
happen.
But first, a tiny physiology lesson. Want to know why referral generation
is one of most effective yet elusive forms of marketing?
There is a tiny part of the brain, the hypothalamus, that—among
other things—helps regulate sexual urges, thirst and hunger, maternal
behavior, aggression, pleasure, and, to some degree, your propensity
to refer.
The hypothalamus likes validation—it registers pleasure in doing
good and being recognized for it, and it’s home to the need to belong
to something greater than ourselves. This is the social drive for making
referrals.
Human beings are physiologically wired to make referrals. That’s
why so many businesses can grow and thrive by tapping this businessbuilding
strategy alone.
Reality #1: People make referrals because
they need to
If you’re one of those people who feels a bit shy about focusing on,
let alone actually asking for, referrals, then the fi rst thing you need to
understand is this:
We rate and refer as a form of survival. Think about it. What happens
when someone asks you for a good tailor? If you know one, you
spill; if you don’t, you think about it and maybe make a call or two.
Instinctively, we know we are going to need a good tip someday, so
we pass on what we know to others to build credit in the community.
I imagine the roots of this notion go back to a time when relying on a
good hunting or fishing tip may have meant the difference between life
and death.
We refer to connect with other people. Being recognized as a source
of good information, including referrals, is a great way to connect with
others. Think about how eagerly you responded the last time someone
asked you for directions, offering up your favorite shortcut and tips for
avoiding traffic. We all do it. Making referrals is a deeply satisfying way
to connect with others—asking for referrals is just the other side of the
same phenomenon. I think the growth of many popular social networks
can be traced to the fact that people love to connect and form communities
around shared ideas.
I asked some people in one of my business networks to tell me about
some of their favorite businesses. Seattle business coach Tammy Redmon’s
(www.tammyredmon.com) response illustrates this point nicely:
“One of our favorite destination points is Voodoo Doughnuts (www.voodoodoughnut.com). It is an incredible little hole-in-the-wall on Third
and Burnside in Portland, Oregon, with room inside the door for about
eight to ten people. Their signature Voodoo Doughnut is out of this
world, and the creativity they put into each creation is awe inspiring. It
doesn’t matter if you like donuts or not, you must go for the experience. It is not to be missed when in Portland. Just plan on waiting in line;
each time I have gone the line has been thirty-plus deep around the
block. No kidding! ‘The magic is in the hole!’ ”
We refer to build our own form of social currency. Providing a referral
is a little like making a deposit. There is a natural law most humans
ascribe to: If you do something for me, I am implicitly obligated to do
something for you. Building up large stores of social capital is what
makes some folks tick. This thinking is what drives some to become
human databases. Their “go to” status when someone needs a referral
is a carefully crafted asset. But understand that the laws of social currency
and fi nancial currency don’t operate in the same manner. Socialcurrency
building comes from a place of help rather than gain. Building
social currency doesn’t involve any strict form of accounting—the universe
seems to sort that out with a give-to-get mentality.
About the Author:
In his new book, John Jantsch explores how companies can strategically market their products to take advantage of the referral and peer review phenomenon of consumer buying habits. Go to his website for more information on how to pre-order his book, The Referral Engine.
Member comments together with Member Names may be used by
InternetMarketingTNT.com for promotional or other media efforts.
Comments that include profanity, or personal attacks, or antisocial behavior
such as "spamming" or "trolling," or other inappropriate comments or
material will be removed from the site. We will take steps to block users
who violate any of our terms of use. You are fully responsible for the
content that you post.
Comments (0)
We invite you to be the first to post a comment regarding this article.
