We All Built It This Way
Virtually every marketing agency or other professional services firm we speak to here at RSW/US tells us that their firm started and was built on a solid referral base.
In our most recent professional service new business survey, we found that 73% of firms rely on referrals for new business.
Most of the firms that come to us looking to learn more about our outsourced new business programs do so because they are experiencing slow-downs in what historically was their #1 source for growth.
So why are the things that built your business gradually heading south?
- Increased Competition & Digital Noise
Clients now have access to more providers who are calling and emailing them, content, and information online. They’re less reliant on personal recommendations and more likely to do their own research. - Changes in Buyer Behavior
Buyers of professional services—especially in B2B—are increasingly relying on the outreach from vendors, digital channels, reviews, and thought leadership over word-of-mouth. - Generational Shifts
Younger decision-makers tend to place less emphasis on referrals and more on independent online validation (like websites, case studies, social proof, etc.). Being ready with those when reaching out to a prospect is key to providing the right kind of validation a younger buyer might need. - Niche Specialization
As more firms specialize, fewer general referrals are applicable. A contact might refer you for one need but not know you’re a fit for another specific issue. Making your clients and past clients aware of the variety of things you do can help you better drive more referrals that make sense for your business. - Longer Sales Cycles
Referrals often lead to conversations, but decision-making timelines are getting longer, making it feel like referrals aren’t producing results. - Risk Aversion & Procurement Controls
Larger companies are using formal procurement processes, which reduces the power of informal referrals. If you can avoid procurement, do it!
So what to do?
Here are three things that come to mind as central to building your business in the post-referral world:
Investing more in thought leadership, content marketing, and SEO
Getting (and keeping) your company’s name in front of prospects and putting yourself in a position of expertise will help separate out your brand from others like it on the market. While work like this can drive inbound leads, it’s not an automatic, so using this content to support an outbound effort is an excellent way to push your message/value in front of prospects.
Building stronger client success programs to retain and grow existing relationships
Building from within is equally as important as building from without the four walls of your firm. In this recent post on Organic Growth, I talk about some of the questions you should be asking yourself as you work to find new opportunities within the clients you currently have.
Creating strategic partnerships and alliances rather than relying solely on client-to-client referrals
Whether than alliance is with a group like ours that supports its clients with our outsourced new business development programs, or something as simple as an alliance with an association that can provide speaking, content, and relationship building opportunities, establishing partnerships like this can make it easier to grow your business.
What do the next 3-5 years look like?
Things aren’t going to get any better for the referral world. With companies cutting back on the number of employees they carry, companies buying up other companies at a faster clip these days, and the lightening speed with with technology is changing the way your prospects gather information, the traditional referral might just go the way of the ages old rolodex.
So be proactive in how your manage your engagement with the people you want to work with. Don’t just rely on them to make the move. You have to take control and guide the conversation to help your prospects realize the great value you can bring to them. But that said, you need to do it in a meaningful and relevant way.
Need Help?
If you’re looking for some perspective or an assist in the world of new business, we’re more than happy to talk and help.
