3 Benefits of building a business referral network
Receiving qualified referrals is one of the quickest ways to scale a business. If you’re starting from scratch, the strategy works. When your firm has reached lower to middle market status and so on, word of mouth will still be one of your greatest outreach tools. Can business networking be planned? It most certainly can!
What’s the difference between business networking and other promotional campaigns?
It’s more natural and organic in growth. This doesn’t refer to speed so much as the quality of close relationships between your customers and marketplaces. Once these connections are established, they are more likely to last due to the increased amount of trust.
In addition to cold-calling or running ads, why not partner with influencers in your field, niche industry etc., who already have audiences. They can help spread your message to hundreds, thousands, and hundreds of thousands. Here are three main benefits to building a business referral network.
Benefit 1: Cost Reduction
Research shows that trusted organizations outperform their competitors across the value spectrum. Referral marketing programs have the highest return on investment out of the most utilized marketing channels, and actually requires the least amount of capital.
Benefit 2: Accelerated Growth Rates
High trust organizations grow faster than low trust companies in sales, profit, external value. Both the size of your referral network and how effectively you nurture referrals determine market success.
Manh companies have experienced incredible month on month growth rate. Some businesses have gone viral from one single referral.
Benefit 3: Increased Conversion Rates
It has also been proven that word of mouth referrals yield higher quality leads. Studies reveal that 80% of business-to-business marketers report that referral marketing produces leads that convert more than average.
Fortune magazine revealed that network-heavy companies tend to consistently earn four times returns of the wider market.
Other notable benefits include:
- Increased value
- Strong culture of innovation
- Stronger collaborative environments
- Higher levels of organizational execution
- Greater brand loyalty
Building A Business Referral Network The Easy Way
Joining a chapter of the BNI or Business Network International can also accelerate the growth of your business. With the international network, companies have access to a global consortium of useful contacts. Known as the world’s greatest organizations for word of mouth marketing, the extensive networks aids firms in gaining exposure.
Exclusive resources give members an almost unfair advantage in their respective industries. With over a quarter of a million members and thousands of chapters internationally, the BNI serves as a powerful asset in any firm’s marketing repertoire.
For small to medium-sized to even large businesses, carefully constructing a referral network produces three distinct benefits: cost reduction, accelerated growth, and increased conversion rates. This marketing strategy essentially levels the playing field. Business networks are the great equalizer, allowing firms across the commercial spectrum to take advantage of opportunities otherwise inaccessible. Your network should help you and your organization grow significantly.