HOW TO BE PROFITABLE WITH A

REFERRAL MATRIX

Marketing Tactics (part 3) from the presentation I delivered at the Australian Institute of Conveyancers (VIC) 2023 conference.

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Amplified Customer Trust

Referral marketing leverages the power of word-of-mouth, a fundamental aspect of human communication. When customers refer your business to their friends, family, or colleagues, it amplifies the trust factor. People tend to trust recommendations from individuals they know and respect, making referrals a highly effective form of marketing. By tapping into existing relationships, you can build credibility and enhance the trustworthiness of your brand.

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Increased Customer Acquisition

Referral marketing serves as a cost-effective method to acquire new customers. By encouraging your existing customers to refer others, you tap into a network of potential leads that are already pre-qualified. In addition, these referred customers are more likely to convert into paying clients since they have an inherent trust in your business, resulting in a higher customer acquisition rate than traditional marketing methods.

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Enhanced Customer Loyalty

Customers who refer others to your business become more invested in your brand’s success. Their act of referral strengthens their loyalty towards your products or services. By rewarding them for their advocacy, you create a sense of reciprocity and deepen the bond between your brand and your customers. Referral marketing helps foster long-term relationships and encourages repeat business, ultimately boosting customer loyalty.

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Expanded Reach and Awareness

Referral marketing acts as an organic extension of your marketing efforts, enabling you to reach new audiences that might have otherwise been challenging to access. Each referral extends your brand’s reach to potential customers who may not have been aware of your business previously. This expanded reach helps to increase brand visibility, generate buzz, and drive more traffic to your website or physical location.

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Higher Conversion and Revenue

Referrals have a higher likelihood of converting into paying customers. When individuals receive a recommendation from someone they trust, they are more inclined to take action and make a purchase. This leads to higher conversion rates and, consequently, increased revenue for your business. Referral marketing maximizes the return on investment by leveraging the power of personal connections to drive sales and boost your bottom line.

Overall, referral marketing offers numerous benefits, including amplified customer trust, increased customer acquisition, enhanced customer loyalty, expanded reach and awareness, and higher conversion rates and revenue. By implementing a well-structured referral program, businesses can tap into the inherent power of word-of-mouth marketing to drive growth and success.

Let’s look at the Referral Matrix method and how you can use this process to gain all the above benefits and ultimately increase your profitability.

Marketing Tactics, part 2 from the Australian Institute of Conveyancers (VIC) Conference 2023 - How to be profitable with a Referral Matrix

#1 Identify and Fill the Referral Matrix

The first step is creating the Referral Matrix by listing ten specific professions related to the business owner’s contact sphere. These professions should work with the same type of buyers as the business owner. The goal is to fill in all 100 cells with the name of a person who matches each profession.

Next, the business owner should leverage their existing network, contacts, and industry relationships to identify individuals who fit each profession and add their names to the corresponding cells.

#2 Utilise a CRM for Tracking and Communication

A Customer Relationship Management (CRM) system should be implemented to manage the Referral Matrix and track interactions. The CRM allows the business owner to document when they contacted each person, had meetings (such as coffee or lunch), or engaged in other forms of communication.

This tracking system helps ensure regular and consistent communication with each contact in the Referral Matrix, allowing the business owner to nurture these relationships and stay top-of-mind.

#3 Track Referrals Given and Received

In addition to tracking communication, it is crucial to record and monitor the referrals given and received through the Referral Matrix. The business owner should document each referral they have given to a contact and also track the referrals received from the individuals in the Referral Matrix.

This information helps measure the effectiveness of the referral network and allows the business owner to identify reciprocal opportunities and foster mutually beneficial relationships.

#4 Nurture Your Contacts for Relationship Development

Once the Referral Matrix is established and contacts are identified, it’s essential to nurture each contact to deepen the relationship. Regular communication, personalised interactions, and providing value to your connections are vital aspects of nurturing relationships. This can include sending relevant articles, sharing industry insights, inviting contacts to events or webinars, and offering support or assistance when needed.

By consistently engaging with your contacts and demonstrating your expertise and genuine interest, you can build trust and strengthen the relationship, increasing the likelihood of receiving quality referrals.

#5 Grow Your Audience by Expanding Your Network

To achieve a full Referral Matrix with 100 names, it’s essential to actively grow your audience and expand your network. There are several strategies to accomplish this:

1️⃣ Attend industry events, conferences, and seminars to meet professionals from complementary fields and potential referral partners.

2️⃣ Join relevant industry associations, business groups, or networking communities to connect with like-minded individuals and expand your reach.

3️⃣ Utilise online platforms, such as LinkedIn and professional forums, to engage with industry peers, join relevant groups, and establish connections with professionals who align with your target audience.

4️⃣ Offer valuable content, such as webinars, e-books, or industry-specific resources, to attract potential contacts and encourage them to join your email list or subscribe to your newsletter.

5️⃣ Actively seek referrals from your existing network by asking for introductions to individuals who may be a good fit for your Referral Matrix. By implementing these strategies, you can steadily grow your list of contacts and expand your audience, ensuring a diverse and robust Referral Matrix for your referral marketing efforts.

The Referral Matrix guides us, connecting with professionals who share our audience and opening new doors. Each added name cultivates a network of trusted allies, becoming advocates on our path to success.
Through CRM usage, we transcend transactions and embrace the art of building genuine relationships. Every interaction becomes an opportunity to inspire, nurture, and leave a lasting impact that extends beyond business.

Maya Angelou wisely said, “People will forget what you said, people will forget what you did, but people will never forget how you made them feel.” In referral marketing, our actions speak louder than words. By building your Referral Matrix, nurturing contacts, and growing our audience, you’ll create an impactful symphony, leaving an indelible mark on lives.

Let’s embrace our power, ignite the flame of connection, and embark on a journey that transcends boundaries. Referral marketing doesn’t just build businesses; it creates communities where greatness resides. Together, we rise.

And one more thing. If you want to find other ways to optimise your brand, check out our Brand Scorecards. There’s one for your Personal Brand and one for your Business Brand.

Personal and Business Brand Scorecards

We’ve designed two Brand Scorecards, tailor-made for two specific scenarios: Personal Brand and a Business Brand.

LEARN MORE