The power (or seduction) of referral marketing
By Bob Thilmont
February 2009
We all have heard of referral marketing. However how often have you tried to
understand the impact it has on you and your business. I want to share with you an
unsolicited third party referral marketing experience that happened to me the day before
the Super Bowl. I had plans to go to a friend's house to watch the game. I was listening
to NPR (National Public Radio) on Saturday morning while driving between errands.
One of the interviews was about choosing the right wine for a Super Bowl party. In
particular, what wines went with nachos and what wine went with buffalo wings. I knew
there would be chips and nachos along with buffalo wings and I also knew I wanted a
good wine to enjoy. When I heard the interview I made a quick detour to one of the
largest bottle shops in Fort Collins. As I looked through the isles for a Chilean
Carmenere for the buffalo wings and a Spanish Paso A Paso Verdejo for the nachos, I
discovered a young couple in the same isle looking for the same wines. We struck up a
conversation and they too had made a detour to the bottle shop after hearing the same
interview. Once I had my wines and was checking out, I noticed the lady in front of me
with the same wines. Once again, I asked her did she listen to the NPR interview.
Jokingly she said yea! The amazing thing about this story was within 15 minutes of
hearing the interview three different parties made unscheduled stops at this bottle shop to
purchase these wines. Multiply this across the country and you can see it was a very
good day for Carmeneres and Paso A Paso Verdejos!
Now contrast this with the actual Super Bowl ads. I cannot think of any of these
advertisements that had an impact on me. Why is this? For one thing traditional
advertising is geared to building brand awareness. Referral marketing is different. Most
people do not ask for referrals unless they are about to make a purchase or hire an
employee. They have been thinking of anticipated action and they are looking for
confirmation that this is the right decision. Secondly, third party referrals usually are
independent. That is, they have no direct financial or personal involvement in the
product being referred. We consider them to be objective.
Building a strong referral network can be an inexpensive yet effective strategy in this
current economy. In addition to the traditional word of mouth referrals, the internet
offers several communities to build your referral networks. Communities such as
Linkedin, Facebook and now Twitter can provide you with a powerful network.
By the way, the wines were excellent! I am interested if any of you heard the same
interview and purchased these wines too. Drop me a line. Until next time!
Bob
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