The Referral Network System Blog

The Art of Listening

We just read a wonderful post on Alf's Blog entitled "To Listen You Must First Shut Up!". This blog is the creation of Alf Nucifora, a marketing consultant and author of the syndicated business column "Shoestring Marketing." Alf claims (and we think rightly so) that "the art of listening has been leeched from the American character." His argument is that, at a time when t.v. pundits "engage in the homicidal pastime of death by decibel," and politicians routinely suck the oxygen out of any room they're in, our businesses are also suffering from the lost art of listening.

"For the business practitioner, the failure to listen ultimately results in business loss or failure. It's one of the primary reasons why, in a nation where the practice of business generally provides the "best practices" for the rest of the world, the consumer is still exposed to inferior customer service, and brand fatality is not uncommon."

Click here to read Alf's seven "how's" of listening.

New Survey Shows Referrals Deliver Best R.O.I. for Small Businesses

A newly published survey of small business owners conducted by Marketing Best Practices.com shows that referral marketing provides the highest return on investment (ROI) for their marketing dollars of any marketing method.

Thirty-six (36) percent of respondents of the poll said referral marketing gave them the biggest return for their marketing dollar. The internet came in a very low second at 14%, while networking followed closely with 13% and direct mail was fourth with 12%.

The press release announcing results of the survey quotes small business marketing expert David Frey as saying "This poll demonstrates the importance of implementing referral systems. Most business comes from referrals, but only a few small businesses actually have referral programs in place."

Giving the Perfect Client Appreciation Gift

I love giving gifts to clients. I want them to know that I appreciate their business, and that their relationship is important to me. Gifts are a perfect way of demonstrating that appreciation. I especially like to give a gift when it is an unexpected surprise. But I also want to give a gift that is perfect for them. I want the WOW! factor.

Lash Fary, the Hollywood gift guru who creates the spectacular gifts bags for the Oscars, the Emmys and the GRAMMYs, says that the cornerstone of giving the perfect present is to "know your audience."

In his hot new book, Fabulous Gifts: Hollywood's Gift Guru Reveals the Secrets to Giving the Perfect Present," Lash says that "knowing the personality of the recipient, their interests, hobbies, favorite colors and idiosyncrasies is crucial to successful gifting." In the book, Lash provides a simple yet profound system for coming up with the perfect gift for every person for whom you buy gifts.

Relationship V. Transaction, Part I: Why Creating a Lifetime Value From Clients Is Important

I had a conversation with an insurance salesman recently who told me that "Clients are a pain in the ass." He isn't interested in creating a relationship with his clients because he wants to be able to squeeze maximum profits from his clients and doesn't want to answer to them when they find out they're over-insured or that they've been overcharged.  He puts all his marketing dollars into prospecting for new clients using cold calls and internet marketing.

It's all about the transaction, baby.

But what he's failing to realize is that his clients are where the money is. He could literally double his revenues while actually reducing his marketing costs if he valued the client relationship more than the transaction.

Want proof that creating client loyalty is paramount to success? Consider this:

Marketing Messages Diluted by Multi-Tasking

We just ran across an ad by the Newspaper National Network (NNN) in this week's Adweek magazine (Nov. 14, 2005) that boasts results from a study that its says proves newspaper ads have a greater impact on purchase decisions than other media.

What we find most interesting, however, is that the results of the study actually seem to prove that the vast majority of people (at least those in the coveted 18 - 34 age group surveyed) aren't really focused on the media they're using. They're "doing other things," or "multi-tasking" while they read newspapers and magazines, listen to the radio, watch t.v. or access the internet. So we ask, "How much of those expensive marketing messages are actually getting through?"

The NNN 2005 Media Engagement Study regarding "the relative strengths of media in today's ever fragmenting media environment" reports that 29% of newspaper readers "mono-task" while reading the newspaper. What that actually means is that 71% of people are "multi-tasking (and we hope that doesn't mean they're reading the newspaper while driving).

The Cure for This Headache: A 2-Cent Stamp

The beginning of January is, for most of us, much needed downtime. The holidays are over and tax season isn't quite upon us yet. But this January, the U.S. Postal Service is throwing a headache into our decompression. It plans to raise the cost of sending a first-class letter by two cents - to 39 cents. And, that means most of us will be standing in long lines at the post office to buy a sheet of 2-cent stamps to cover the rate increase so we can mail in our credit card bills and other important mail on time.

A wonderful (and simple and inexpensive) gift you can give your clients this holiday season that will be greatly appreciated is a strip of 2-cent stamps.

Welcome to The Referral Network System Blog

Whenever I speak to groups of professionals and entrepreneurs, I always ask two questions. First I ask: "Are your best and most loyal clients those who are referred to you?" and nearly every person in the room raises their hand high in the air. They all love referrals. Then I ask: "How many of you have a system for generating a constant stream of high-quality referrals?" and the hands all come down. I'm guessing this means they all feel lucky.

I've found that, to be successful at producing referrals, you first need to build strong relationships with your clients and business associates. Your first transaction with a client should be the beginning of the relationship, not the end. But that means having a system that allows you to stay in touch, provide first-rate customer service, and  show your appreciation.

This blog is designed to provide information to professionals and entrepreneurs on how to build their businesses by referral. The focus will be on ways you can:

• Create a Lifetime Value from Your Clients
• Maximize the Value of Your Database
• Unlock the Potential of Your Business and Personal Networks

I am really looking forward to sharing my knowledge of cultivating referrals and building life-long business relationships with you, and I look forward to your comments.

Denise Kotula

President, DK Strategic Consulting, Inc.