Discover How Referral Marketing Can Help Your Professional Services Business 

What is referral marketing?

Referral marketing is a type of marketing activity which promotes your products or services through word-of-mouth, usually, recommendations from friends, peers, or clients. It is a low-cost marketing method which develops business opportunities and builds a strong network of like-minded people, in the hope that these relationships turn into business referrals. 

For professional services – such as accountants, lawyers, coaches, consultants, and independent financial advisors (IFAs) - referral marketing has a tighter definition and can be used strategically as part of your overall marketing plan. Building a network of trusted professionals in other industries can enhance the service you provide for your clients and strengthen client relationships.   

For example, if you are an IFA with a client needing legal services, you can refer them to your trusted lawyer/solicitor. The client is then well served by having reduced worries about finding someone reliable, whilst your referred lawyer/solicitor is happy to gain a new client. 

How can referral marketing help your professional services business?

You may wonder what the benefit would be for your business. By referring your client to your trusted professional, that person will later think of you and hopefully refer them to you when they too, have a client with needs outside their own capabilities. 

Referral marketing improves your credibility. Hearing about your business from someone else immediately inspires trust and increases social proof. Any positive comments about you – or your business - act as social proof. It makes your business more trustworthy in the eyes of potential customers and carries more weight than advertising your services yourself.

Referral marketing acts as a natural filter to reach your target audience. Clients who come from referrals tend to be people who heard about you from a trusted source or have been referred to you by people who think they would benefit from your services. This will make them more inclined to buy from you – and help close deals faster than ever before.

How can you get started with referral marketing?

Let’s take a look at the two most popular referral marketing methods: Networking and LinkedIn.

Networking

Networking is indispensable. It helps develop business opportunities and build a strong network of like-minded people, hoping these relationships turn into business referrals. The more you network, the more you create visibility for your business and build your reputation and credibility, with the added advantage of recommendations and personal introduction. 

It is vital to research before choosing a networking group and prepare before the meeting. You'll need to have a plan to save yourself from wasting precious time and effort and make the most of the business opportunities presented to you.

LinkedIn

LinkedIn is the most powerful social media platform for connecting with other professionals. It helps you build a comprehensive business profile, displaying your skills and recommendations. 

It is a great way to connect with other businesses or stay in touch with previous colleagues or past clients. By engaging with and/or recommending other reputable local businesses, they will return the favour, leading to more business referrals and business growth.

Conclusion

Professional Services businesses can’t afford to ignore the benefits of referral marketing. It will help them generate more leads and gain more business.  Check out Eventbrite, The Networker and google to see what is in your area.