By allowing people to send you referrals as an end result goal your clients must know specifically what you do, what product or service you provide and make, how and under what type of conditions you are providing, how well you do it and in what ways you are better at what you do than your competition. If you have the ability to effectively communicate this information to your sources you must also possess the ability to know the same things.
When putting together your referral marketing campaign, ask yourself these following questions in trying to get a clear picture of where your business stands today.
Why are you in business?
What do you sell?
Who are your customers?
How well do you compete?
What is your business mission?
Where is my organization going?
What environment is my organization operating in?
What are my core competencies?
What is it I like to do?
What is the purpose of your product or service?
What needs does it satisfy?
How would you describe it?
How is your product or service delievered to the customer?
How much does it cost?
Under what conditions?
What is your target market?
Who are your most likely customers?
What do your customers come to your for?
What is your area of expertise?
What segment of your business gives you the most pleasure?
What segment of your business gives you the most profit?
How do you differ from the competition?
Are your prices and costs competitive?
Do customers who compare costs come back to you?
Do you compete effectively in terms of product or service quality?
Know your Products and Services
Prospective customers buy from you the first time because they have been referred by your personal sources. They continue to buy from you because they trust you and develop a good working relationship with you. Customers are your customers for a reason, because they need your products and services.
Know your Target Market
Your target market is a specific set of customers whose needs you are trying to meet. Instead of trying to sell your product or service to everyone in a market, you should aim your message toward those who have greater potential need or desires for your product or services. Knowing who your customers are is key, having good practice to step back now and then to reevaluate in perspective your assumptions.
Know your Competitive Position
To find out how you stack up against your competiton, take a little time to analyze your competitive status. By doing so, you will understand your unique selling position, how your company is different and how you can position yourself for the best competitive advantages. Conducting a competitive analysis is mostly just good business sense.
