Relationship Marketing focuses on building connections with your clients and business partners. You can then consolidate those relationships which will go on to create new opportunities, more clients, and higher profits.  

When implementing relationship marketing techniques, focus on the following four categories:  

  • Referrals 
  • Networking 
  • Strategic partnerships 
  • Host/Beneficiary 

Let’s see how each technique can help you meet your business goals.  

Referrals

Referral marketing is another way to say word-of-mouth, and it’s one of the most effective ways to build awareness about your business and increase your client base. It means someone you know recommending you and your products or services to someone else – putting you in contact with them, perhaps doing an email introduction or facilitating a meeting or call. So how can you use referrals to sell more?  

Analyse your current business model and determine what percentage of your business comes from referrals. Next, try to identify the people who are bringing you referrals right now. You absolutely need to know each of them by name as they’re one of your most valuable assets — and worth a lot of money.   

Here’s what you can start doing right away:  

  • Ask existing clients for referrals and make it easy for them to do so. Think about using referral cards, vouchers, or certificates that they can easily share with friends and even their own clients. Organise events where folks can invite more friends. However, make clear right from the start that, at some point, you’ll ask for referrals.  
  • Be specific — let your associate know what type of person you want to meet (your ideal client), the kind who would be a great referral for you. Then, when you meet them, it should be easier for you to start doing business with them and make a sale.   
  • Always thank referrers for their efforts and reward them (within your means) in some way.  
  • Take great care of the new clients they bring you. Your good reputation depends on it – and your chances of receiving more of these referrals in the future. 

Be consistent in your approach to referral marketing. You do need to dedicate time and resources and be proactive about finding and cultivating referrals if you want to gain more clients. 

Networking

Networking is another effective way to meet new people and spread the word about your business and what you do. In reality, it is just a more formalised method of referral marketing. 

You can join an existing networking group or you could even start one of your own! Often you’ll have to pay a fee to get access to quality leads, so make sure you pick groups that are most likely to fit your target audience, to see a good return on your investment. Wherever you happen to live, there are likely to be lots both in your area and online. 

Different networking groups meet on a weekly or monthly basis. Outside of the meetings themselves, you also need to factor in time to do 121s with people in order to get to know them better. 

Make the most of your networking efforts with these easy tips:  

  • Go in with a SMART goal — “I want to acquire ten new connections (people you haven’t met before), three 121s / meet-ups over coffee, and one actual meeting (to talk real business).” Give it a little time too. If you don’t get business, you’re either doing it wrong or you’re in the wrong group!  
  • Keep thinking of innovative ways to build relationships. When joining a networking group, make sure you give members an experience that makes them feel special. For example, you could create some different offers based on each member’s business goals. Perhaps give them a special discount for using your services. 
  • Ask for referrals and make it easy for people to refer you to their networks. Look over all the tips in the previous section.  

Remember, no one goes to a networking group to buy; everyone goes there to sell. So you need to enter a networking group with a different objective in mind. Your aim is to build a network of people who will refer you to other people, so equip everybody in the meeting with the tools to sell for you. Think of it as selling through the room, not to the room. 

Strategic Partnerships

When looking to build strategic partnerships, you need to collaborate with businesses, groups, clubs and associations who will have a database of customers that match your ideal audience.  

Alternatively, aim to enter the ‘business cycle’ where you can acquire clients who will buy something from you after they’ve bought from a company that offers a complementary product or service.  

So, how do you identify the right partners for your brand? Come up with a list of 20 industries or businesses that have the same target audience but don’t sell the same product or service as you. For example, a hairdressers could have the same target audience as a local clothes shop.  

For each industry, build a database of 5-10 businesses in your local area (or perhaps even online) where you would like to have partnerships. This way, you’ll have about 200 businesses that could become strategic partners for your company.   

That doesn’t mean you should start contacting all of them right away. It can take years to build relationships with them, so don’t feel overwhelmed by the numbers.  

Here are a few more ways to build and consolidate relationships with strategic partners:  

  • Strategic partnerships aren’t business-to-business relationships, they are people-to-people connections. Make the time to bond with people outside of work to establish better long-term relationships.  
  • Be consistent in your efforts to build the ‘know, like and trust’ factors with your partners.  
  • Once the strategic partnership is established, set clear expectations and timeframes to make sure both parties involved know what they have to do, and work together to reach those goals.  
  • Build a community amongst your strategic partners. That way you become a facilitator — they get to know each other and regard you as a ‘strategic hub’.  

When you don’t know how to get in touch with a potential strategic partner, ask someone for a connection. Introductions are an effective way to start a business relationship, especially if you’re doing business locally. You could also think about donating to the charity your potential partner supports, or interviewing someone from the company for your podcast.  

Host/Beneficiary

The good news is that you can use the same list of strategic partners you have already created for developing new host/beneficiary arrangements. As a general rule, the large company endorses the smaller one. These campaigns often work both ways: sometimes, you can rely on another partner to support you while at other times you become the referrer for smaller partners.  

Whatever the offer you put together, the trick is always to give away value, not cash. You want to have it all figured out before contacting your potential partner so that you make it easy for them simply to say yes to your collaboration.  

The easiest way to implement this technique is ‘piggyback mail’ or email — you put an offer in with your partner’s newsletters or printed correspondence to reach a larger audience.  

What’s Next?    

Let’s recap what you can do right away to get started with relationship marketing:  

  1. Get to work on your referrals.  
  2. Start networking to make your business accessible to more people.   
  3. Make a list of potential strategic partners and start building those relationships.   
  4. Find other companies in your area for host/beneficiary arrangements.  
  5. Come up with an offer you can easily share through piggyback mailing and start looking for people who can help you spread the word.