Exporting Your Services
Developing Referrals & Advocates
The most important source of opportunities for service companies is referrals. If you think about how you select a new service provider, you probably ask others for recommendations. Your firm’s export development challenge is to become the company that others in the market recommend. The following eight questions and answers provide tips on developing referrals and advocates in your target export market:
How can I get referrals?
Who else can I ask for referrals besides our customers?
Why don’t people ask for referrals if it is so obvious?
Does association membership really help?
Why it is important to shift from “cold calls” to testimonial and referral generation?
Why emphasize advocates for our firm rather than for our service itself?
What about partners as referral sources and advocates?
How can I help advocates feel appreciated?
How can I get referrals?
Ask! It is as simple as that. Often we forget to ask our customers and others who know our service if they will refer us to others who might want to use our service. So begin by asking customers who know your services well and likely want to help.
Your best resources in the target market are people who are already familiar with you or your service and are willing to give you a referral into the market. These may be people in Canada from the target market or with contacts in the market. Or they may be people in the target market or other markets abroad.
Who else can I ask for referrals besides our customers?
Ask anyone else interested in the success of your business – e.g., your banker, your accountant, your business mentor. If there are other Canadian firms you have helped in the past, ask them for help with referrals into your target market.
Canadian Trade Commissioners can also provide introductions to association executives who can discuss the opportunities and potential contacts in the market.
As you become clearer about the target markets of most interest to you, you can seek out Canadians from those markets or hire an intern from the market who can help you develop referral links.
Why don’t people ask for referrals if it is so obvious?
Sometimes it is because people are afraid they will hear “no, I would not refer anyone to you.” But, if that’s the case, it is best for you to hear about the problem and have the opportunity to address it before you move forward. Sometimes it’s because people are not aware of the importance of generating referrals or testimonials. Maybe they already get a lot of referrals and never thought about generating new referrals. Another reason people may not ask is they have been taught that “prospecting” or “cold calling” is the way to build a business, or feel it is “unprofessional” to ask for a written testimonial to use in marketing materials. These beliefs should not hold you back from asking for referrals.
Does association membership really help?
Membership in an association in your target market provides several benefits. It makes you more familiar and accessible (because you are listed in the directory) and gives you an opportunity to network with potential local partners.
Why it is important to shift from “cold calls” to testimonial and referral generation?
If you are trying to generate potential customers without using referrals, an initial prospect is the proverbial “cold call.” Although cold calling (or telemarketing) has become standard practice, you should ask yourself why this potential customer would have any reason to respond to the offer of an unknown service.
If the prospect does respond and try your service, they become a customer – i.e., a contact with whom you may have done business once. They know of you but are not likely to talk to others about your firm. However, once you have done business with them a couple of times, they might be willing to give you a referral if asked.
If they use your services frequently and are satisfied with your services, they may become a supporter – i.e., someone who will speak favourably about you when asked.
But an advocate is someone who is so pleased with your service they talk about your capabilities without even being asked. They are, in effect, doing your marketing for you! You want advocates – lots of them!
Now, ironically, 80% of companies spend 80% of their time making cold calls on prospects. It is the most expensive way of marketing, yet we know that services are not sold during a cold call. Clearly, more time should be spent building as many advocates as possible.
Why emphasize advocates for our firm rather than for our service itself?
In order to export profitably, you want to have the flexibility to innovate – to design new services, not just repeat old ones – especially if the potential customer has unique needs. Advocates can help the potential customer trust your firm can innovate effectively.
What about partners as referral sources and advocates?
Potential partners are certainly an excellent resource as they have already established a presence in the market. You can turn to them for referrals and prompt them to seek joint projects by updating them on your capabilities.
How can I help advocates feel appreciated?
You want to encourage advocates familiar with your capabilities to become active in recommending your firm to others. So it is important to nurture key relationships, especially with those who themselves have extensive networks. You will want to provide advocates with frequent updates on your accomplishments, particularly as you expand into export markets, and alert them to the types of opportunities that would be ideal for your firm. When they are helpful, it is of course important to acknowledge the help they have provided so they feel their efforts are appreciated.