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Ask businesspeople where their best leads – and best customers – come from, and most will respond “referrals.” Many marketers will establish incentives to encourage referrals. That may not be a bad idea. But it's important to recognize that most people enjoy being the source of good information, and really don't care about a bonus. An excellent referral makes them look good. (Some might even think that a referral bonus is a sign of a less-than-stellar product.) In fact, encouraging referrals should be part of a much broader program that's geared to helping people become your advocates. A few thoughts:

	Be memorable. Provide exceptional service, high value, a unique or niche product, or super-competitive prices – something that people can talk about. Build your positioning around it.
	Educate your customers, colleagues and business partners. Make sure your customers are aware of all your product or service offerings – not just the ones they purchase. Tell them about other potential applications. Help them appreciate how your product or service is better than others.
	Do the same with employees. And make sure they have a crisp, compelling “elevator speech.”
	Make your customers proud to be affiliated with you. If you don't think bragging rights are important, you haven't noticed all the Mercedes-Benzes on the highway.
	Provide customers, referral sources and employees with information they can easily keep on file and pass along, such as business cards, literature and email newsletters.
	Think creatively about the types of business partners that might be good referral sources, and cultivate them carefully.
	Be a proactive referral source yourself. People like to return favors.
	Develop relationships. Get to know people. Take a genuine interest in them. Be likable. Make it pleasant to do business with you. And train sales staff to do the same.
	Develop a non-intrusive way to stay in regular contact with your potential referral network.
	Be appreciative of referrals – even if you don't get the business. Send acknowledgements commensurate with the value of the referral, anything from a quick thank-you email to a gift certificate for a night on the town.

What do you think? Email Robin Lawson, rlawson@marketalk.com.

Think Again is a monthly e-column intended to inspire a fresh look at marketing-related business issues. Marketing is what the enterprise does to motivate buyers – not just what the enterprise says. Think Again is published by Marketalk, a marketing advisory firm in Newburyport, Mass. that helps business clients achieve the highest return on their marketing investment. For more information, please visit http://www.marketalk.com/.

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