Direct Referrals Put Professional Service Firms at Risk
A new perspective on referrals, the marketing mainstay of small advisory firms
"The Marketing Machine® for Professional Services" acknowledges that referrals are the lifeblood of professional service firms. But most firms continue to rely on friends and associates to provide an adequate volume of referrals. According to Krueger and Nicols, marketing specialists with $billions in professional sales and marketing experience, this approach may be sowing the seeds of disaster for the smaller firm's long-term success and sustainability.
· - Direct referrals are often made without regard to a firm's actual expertise or type of clients served. This poses risks to both the firm and the potential client.
· - Referrals by friends or associates can come with baggage – assumed discounts, a lean on friendship, and unrealistic expectations.
· - A friend's referral can pressure the firm to take unprofitable business. Potential profitability to the firm is rarely even considered.
Krueger and Nicols lay out a formula for success that focuses more on the professional services required than on the number of prospects. And it expands the source of referrals.
"As a professional services firm, your marketing success will be measured not by volume of 1st tier referrals, but those received from 2nd and 3rd tier referrals . . . recommendations by people who likely have no direct connection to you and who know you only by reputation."
This multi-tiered approach is contrary to nearly every popular referral program out there. With case histories and many examples, the book describes in detail how and why the multi-tiered approach works. It is aimed at the professional who loathes selling and probably isn't even a fan of marketing – but who is looking for quality leads. The Marketing Machine® for Professional Services ends the search.
The book is available at Amazon in eBook and paperback format; an extensive preview is available online at https://TheMarketingMachineGroup.com.
Virginia S. Nicols
The Marketing Machine®