Maximising the word of mouth: Honing your referral process

As you prepare for a successful 2013, it’s important to put some energy into where the majority of your business is likely to come from.

Fiona Mackenzie of Macquarie Practice Consulting says research continues to show that referrals trump all other forms of business leads.

“In terms of attracting new clients, our benchmarking research has been consistent over the past five years in showing that it’s really referrals from existing clients and accountants that are the key sources of new business.”

Mackenzie says it’s difficult for many borrowers to decide who to consult when choosing a home loan and many end up seeking advice from people they trust.

However, establishing a successful referral relationship does take a bit of work. So, in this week’s edition of Broker TV, Mackenzie offers some tips to get you on the right path:

1. Make sure there’s a good fit between your businesses.This means making sure they’ve got a similar client base, similar levels of service and that the product mix is complementary.
2. Ensure you’re both equally committed to the relationship and making it work
3. Make it commercial when developing a referral relationship with another finance professional

“Be clear what constitutes a lead. What does that look like? How many are you expecting? Working through those things over time is really important to make these sorts of referral relationships work – which ultimately brings new clients to your business.”

Mackenzie also offers advice on how to cultivate referral relationships in these ‘turbulent times’. To watch the full interview, view the following link:http://www.brokernews.com.au/tv/the-big-story/summer-series-how-to-create-the-perfect-partnership-147493.aspx