by David Goetz
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Stuck at a plateau? Wish your organization could “go to the next level,” whatever that means. Simply want something more than single digit growth?
Remember this phrase: the POWER of 7.
Marketing can do only so much for professional service firms. Yes, you need to understand your clear point of difference in the marketplace.
Yes, you need to be able to communicate that with clarity to those in your database (current clients, past clients, referral sources, business to business partners, etc.); you need to be able to educate folks on how you’re different from your competitors. Yes, you need a web site and brochures and the like. You need basic marketing.
But most professional service firms grow primarily by referral. Period.
Other than a public endorsement from Oprah, you grow primarily, for example, when an executive at a current client refers you to a friend of hers at another firm. That’s the magic.
It’s a form of “word of mouth” marketing. And a cousin to viral marketing. The problem is that “word of mouth” tends to be passive, not active. You get the referral at the whim of your current client.
Back to the POWER of 7 …
If you want to grow, your consultants (lawyers, investment bankers, etc) simply need to pick up the telephone. Here’s the statistic: If you follow up a direct mail piece (letter or newsletter or other publication, for example) with a phone call, it is seven times more likely to be effective in generating a referral. (The statistic comes from the real estate services industry—Brian Buffini, www.buffiniandcompany.com).
A phone call is active. Instead of expecting the phone to ring, you make it ring. Check in with your clients and referral sources. Ask a few questions. Set up a lunch. Perhaps even create a friendship.
Radical, I know.
The problem, of course, is the notion of using the telephone for business. Who wants to do that?
Too bad we can’t outsource that to India.
January 25th, 2007 at 10:37 am
You always seem to hit a hot bottom. I still agree with as much phone communication and personal contact as possible. I don’t want to just be an email address. How many of us have bid on projects or have even done them but have never met the client? What sets us apart from others. I do not just want to be an email address. Keep up the good thoughts.
January 25th, 2007 at 11:24 am
Hey, Dave. I miss Chicago these days … but as a native Minnesotan can’t bring myself to say Go Bears. Thanks for proving the point with your life.
January 25th, 2007 at 1:04 pm
Dave,
I agree completely. The data shows us from prospective student surveys that telephone contact –especially after an e-mail or traditional mailing, is still our best recruitment tool.
John
January 25th, 2007 at 10:38 pm
Dave:
You should be peddling for Oil-Dri.
Swede
January 26th, 2007 at 6:01 pm
Dave:
Thanks for getting the word out on sending notes and making phone calls!
My goal each day is to find a reason to call or write to one of my clients. Was their name in the newspaper? Did I talk to one of their friends or clients? Am I following up on something I sent them? Are you going to be in their town next week and up for a visit?
It is so easy to do something else, but the contact is necessary.
Scott
January 26th, 2007 at 6:33 pm
Hello Dave,
Well said. But don’t leave it at one phone call. I once attended a sales training course where the trainer advocated seven calls to follow up. I had a potential client whom I had already called four times and having not received a return call, had given up. At the lunch break, I called again, was connected to the person and agreed to a proposal that led to an assignment.
On another note, I had a VC I was chasing whom I thought would really like our company. I called numerous times and even twice went to meetings where I thought he would be present to make the point in person. After a year of chasing him, he finally consented to meet with me. He subsequently made a $1 million investment.
Persistance matters!
January 28th, 2007 at 6:28 am
Right Thought!
Your insights are on the mark.
January 28th, 2007 at 3:33 pm
Hi David,
Bulls eye, or these days I should say Bears eye!
At Helping Hand PC Services & Networking, Inc. we have built our company through the power of referrals. In fact 80% of our business comes from referrals. As an assistant director for BNI (Business Networking International) I believe strongly in the power of word of mouth marketing. So much that five of our seven employees are involved in chapters throughout the Fox Valley area, our core business concentration.
As we see it referrals open the opportunity for us to create and build strong long lasting business relationships not to mention friendships! Your phone calls, emails, marketing materials, and or visits are the tools to help us create these relationships. Strong relationships sure make our choice for creating new business and easy button!
Respectful yours
David B. Eshoo
President
Helping Hand PC Services & Networking, Inc.