As you build your business, you naturally explore different avenues of networking for new opportunities. One of those sources is the cross reference.
Cross-references are strategic agreements, formal or informal, between companies that serve similar markets to exchange their customers’ contact information with each other to market their complementary products or services. For example, web designers can create reference resources from freelance writers, marketing and branding companies or web developers and other companies that do things that designers do not, but offer complementary services to their end customers.
Cross-referencing is a great way to use free word of mouth advertising, although referral deals may not always be free. There will be some arrangements where you can earn a commission based on a pre-set percentage or a fixed referral fee; But many startups are happy to give free referrals in exchange for the same courtesy. While these referral deals may seem like promotional gold, you can’t always trust other companies to sell you to their clients. More than a passing comment may never be made for an occasional customer. If you rely heavily on referrals from others, you need to make a change in your approach. While paid referral deals may offer more incentives, it is your responsibility to provide your referral sources with the right materials to help them promote your business.
Some ideas include:
Professional-looking brochures and business cards that contain your website, contact information, and an advertisement about your services or products. If the situation warrants, you can regularly provide referral sources with discount offers and coupons that can be passed on to your own clients that are exclusive to referral clients or clients.
Promotional items such as pens and magnets that can be passed on to other people.
Say thanks
When referrals start rolling in, make sure your cross-referral business partners know how much you appreciate them. Complimentary thank you notes are crucial after referrals bring you business. Keep a stack of personalized thank you cards to mail after receiving a referral. You may consider a small gift basket of cookies or snacks to say thank you from time to time. A good lunchtime meeting can also help reinforce your gratitude for referral assistance.
Referrals are not for everyone
Don’t expect everyone to be open to participating in free referrals. It can quickly become boring for others if you are constantly asking for help with doing business. You need to have a solid marketing system in place so that you don’t rely solely on referrals for new business, making any referrals that come as the icing on the cake. It is good practice to contact your cross-reference sources to keep them updated on your business news.
Remember: it’s a two-way street, and you have to work just as hard to cross-refer your business partners as you expect them to in return. The more often you make referrals, the more likely they will return the favor.
Don’t forget your customers
One of your greatest resources for referrals may not be from other companies. In fact, it is the praise of your customers that will ensure constant word of mouth advertising for you. This is one of the reasons why excellent customer service is vital to the success of your recommendation. Customers who have always had a good experience with your company will be more than willing to spread the word to others who need your product or service. While there is no obligation to reward these acts, you can provide something in exchange for your publicity on your behalf. The better you serve the customers you already have, the more likely you are to expand your customer base. For those customers who are particularly good to you, a token of appreciation such as a cookie or candy gift sometimes goes beyond a discount on a service or referral commission, and humanizes the relationship between you beyond a business one.
Referrals can be a great source of business for you, especially when you’re just starting out. You can’t expect everyone to cooperate, but you certainly can’t be shy about approaching the situation. Be direct but flexible, and always offer to return the favor.