How to Build a Referral Network
Word-of-mouth referrals are the number one method professional services firms get leads and gain new business.
As 82% of business owners use referrals from peers, friends or family when searching for an accountant, every accounting practice needs a referral marketing system. Five questions every accounting practice should think about:
- Have you developed a referral network? (This should include financial planners, mortgage brokers, current clients, family and friends).’
- Do you reward and recognise referrals in a meaningful way? (For example, bottle of wine, gift voucher of a reasonable value e.g. $100+, lunch at a good restaurant). The reward must have notable value.
- Do you record all business clients gained by referrals and lost throughout the year? Do you find out why clients have left the practice?
- Are you investing your advertising dollars in the wrong mediums.
- Are you spending a minimum of 2% of turnover on business client acquisition? This includes PR, reward schemes etc.