Author: Pamela Swift

Categories
Planning & Management

Navigating Uncertainty: DBS CEO Tan Su Shan’s Strategic Blueprint for Resilience

Snippet: In an era marked by global volatility, DBS CEO Tan Su Shan identifies four pivotal areas—supply chains, logistics, payments, and technology infrastructure—that businesses must reevaluate to maintain resilience and capitalize on emerging opportunities.

Impact: Tan Su Shan’s insights underscore a paradigm shift where operational components like supply chains and technology infrastructure are now central to strategic planning. By focusing on these areas, businesses can better navigate the complexities of a fragmented global economy, adapt to shifting trade dynamics, and position themselves for sustained growth amidst uncertainty.

Categories
How-To Guides

How To Understand the Reality of Paid Advertising vs. Referred Business

In the words of Henry Ford, “I know half my advertising doesn’t work; I just don’t know which half.”
As small business owners, we face an overwhelming array of marketing options, with paid advertising being a common go-to method. However, the truth is that paid advertising can be a hit-or-miss approach, lacking guaranteed success. Fortunately, there is an alternative that can bring long-term value to your business: building high-quality referral relationships.
The Benefits of Referred Business
While I may be biased, there are several advantages that referred business holds over paid advertising. The foremost benefit is the level of trust that referred customers have in your business even before they meet you.
According to a Nielsen study, a staggering 84% of consumers trust recommendations from friends and family more than any other form of advertising. Imagine 84% of prospects already trusting your business before even knowing you!
This trust translates into a higher likelihood of conversion and loyalty among referred customers. They are more inclined to become paying customers and make repeat purchases, leading to increased customer lifetime value for your business.
In my own experience running a mattress store, referred clients consistently made purchases, spent significantly more, and the sales process was smoother as they were already familiar with our product and service.
Another compelling advantage of referred business is the cost savings it offers compared to paid advertising. Paid advertising can be expensive, and measuring its return on investment can be challenging. With referrals, the cost typically amounts to your time, occasional coffee or lunch meetings, and perhaps a thoughtful thank-you gift or card.
This investment is often much lower than the expenses associated with paid advertising. Moreover, since the referral comes from a trusted source, the chances of a successful sale are higher, requiring less effort to close the deal. This makes the time spent building relationships a valuable investment.
Referred customers are also more likely to share their positive experiences with others, generating additional referral business in the future. This creates a snowball

effect, where each referred customer brings in more referrals, resulting in a steady stream of new business.
Don’t forget to ask your referred customers for reviews, especially on platforms like Google, as this not only serves as passive referrals but also acts as social proof. You can leverage these reviews to show your referral partners that the people they send your way appreciate your business, further encouraging them to refer more clients.
A study by the Harvard Business Review revealed that referred customers have longer-lasting relationships and a higher lifetime value. This is due to their higher satisfaction with the products or services received, leading to a more reliable customer base.
Additionally, referred customers are more likely to refer others to your business, expanding your customer network even further. It’s a win-win situation where both your business and customers benefit, fostering growth and prosperity. The benefits of referred customers cannot be overstated, as they contribute to increased customer satisfaction, repeat business, and overall small business growth.
According to a study by the Wharton School of Business, referred customers tend to spend 16% more than non-referred customers. This is because they trust the business and are more willing to invest in products or services. Just imagine a 16% increase in sales simply by having customers who already know, like, and trust you, willing to spend more.
This aligns with my personal experience in the mattress business and echoes the sentiments shared by members of BNI, who consistently report receiving better referrals than those generated through other sources.
Building referral relationships, however, requires a genuine desire to help others. Referrals cannot be obtained simply by asking or expecting them to come to you. Your primary focus should be on assisting the other person, demonstrating your commitment to building
Written by Braith Bamkin

Categories
Customer Service

Developing Trust: Utilising Your Ultimate Business Asset

In today’s blog post, we’re going to explore the ultimate business resource: trust. If I were to ask you what the most valuable asset in your business is, what would you say? Over the years, I’ve posed this question to numerous business professionals, and while the answers vary, the common thread that emerges is trust.
Consider this: if you responded with “my product or service,” what ultimately drives people to choose and consume it? No matter how impressive or innovative your offering may be, if customers don’t trust that it will deliver on its promises, its value diminishes significantly.
Likewise, if your answer revolves around yourself, your skills, or your knowledge, trust plays a crucial role. Without trust in you as an individual, regardless of your capabilities, people will hesitate to engage with you.
The same applies if you mentioned “my team.” Trust is equally important when it comes to your relationship with your employees. Building trust with them is vital for fostering a productive and cohesive work environment.
Unfortunately, many business owners overlook the significance of trust and fail to cultivate it in their marketing efforts, products, and networks. However, I have spent years helping entrepreneurs understand the importance of trust in establishing referral networks and generating business. I’ve witnessed firsthand how trust can drive tremendous success in business, yet it remains an underutilized and often neglected resource.
Let’s delve into the components of trust. In his book “The Speed of Trust,” Stephen Covey identifies four quadrants that form the foundation of trust:
1. Integrity: Honesty and transparency are at the core of integrity. If you conduct your business in a dishonest or disingenuous manner, your actions will be perceived as weak and unreliable, regardless of any other positive attributes.
2. Intent: People have a keen ability to detect sincerity and genuine motives. When someone’s intentions appear suspect or self-serving, trust erodes. It’s essential to be aware of the true intent behind your actions and ensure they align with building trust.
3. Capabilities: Trust hinges on the belief that someone possesses the necessary skills and expertise to fulfill their commitments. If doubts arise about your ability to deliver on your promises, trust will be difficult to establish

or maintain.
4. Results: Building trust requires demonstrating a track record of achieving desired outcomes. People seek evidence that you have previously accomplished what you claim, as this bolsters their confidence in your ability to deliver.
Building trust takes time, and individuals trust at varying speeds. Therefore, it’s essential to continually exhibit trustworthy behaviours. While some may extend trust early on, others require more time and evidence before feeling comfortable. By focusing on the four quadrants of trust, you can nurture and maintain strong business relationships with your referral partners.
One important lesson I’ve learned in my business journey is that people don’t care how much you know until they know how much you care. This mantra holds significant weight when it comes to building trust. I vividly recall an experience early in my career where I mistakenly prioritised showcasing my knowledge over demonstrating care and empathy. This misstep resulted in strained relationships and irreparable damage to trust. The incident served as a stark reminder that trust cannot be built solely on expertise; genuine care and concern are crucial.
Trust is a form of currency in relationships, and its depth matters more than the sheer number of connections. Networking extensively without building trust yields little results. According to sociologist Robin Dunbar, our cognitive capacity allows us to have meaningful relationships with approximately 150-180 people. Within this network, we have closer relationships with around 50 individuals, while only about 15 people are those we truly know well. The inner circle consists of our five closest friends and allies.
So, how do you build trust? Trust is a product of time and actions. One of the most valuable lessons I learned from BNI (Business Network International) is the concept of “Givers Gain.” By genuinely helping others and consistently demonstrating trustworthy behaviour over time, you can foster trust. Remember, trust is unique to each person, and you’ll recognize it through their actions and attitudes towards you. Therefore, nurturing and preserving trust in a relationship should be a top priority.
Here are a few ideas for building trust in business:
1. Consistency:Actconsistentlyandreliablytoinstillconfidenceinothers.
2. Seekfeedback:Encourageopencommunicationandactivelylistentoothers’
perspectives.
3. Prioritiserelationship-buildingtime:Dedicatetimetonurturingrelationships
and getting to know others on a deeper level.

4. Bereachableandavailable:Beaccessibletootherswithinreasonablelimits, ensuring they feel valued and heard.
5. Communicateclearly:Clarityinyourcommunicationhelpsprevent misunderstandings and builds trust.
6. Acknowledgemistakes:Admittingfaultwhenyou’rewrongdemonstrates integrity and strengthens trust.
7. Honourcommitments:Alwaysfollowthroughonyourpromisesand commitments to establish reliability.
8. Bevulnerableandgenuine:Authenticitybreedstrust,sodon’tbeafraidto show vulnerability and share real experiences.
9. Acttransparently:Openlyshowcaseyouractionsanddecisions,allowing others to trust your integrity.
10.Stand up for what’s right: Upholding moral principles and defending what you believe in cultivates trust among others.
In summary, trust is built through a combination of actions and time. By understanding the significance of trust in business and actively working to cultivate it, you can develop strong referral relationships that propel your business to new heights. Never take trust for granted, and remember that trust is the cornerstone of successful and enduring business connections.
Written by Braith Bamkin

Categories
Sales & Marketing

The Impact of Referrals on Business Success

If you’re here reading this article, it’s likely that you’re seeking ways to expand your business. Along the way, you’ve probably considered the value of referrals. Whether you already receive referrals and want more or you’re new in business and want to understand how to generate business through word-of-mouth, referrals can play a crucial role. In this article, we’ll explore why referrals are not only good for your business, but how they can create significant revenue streams and pave the path to success in the long run.

If you’re here reading this article, it’s likely that you’re seeking ways to expand your business. Along the way, you’ve probably considered the value of referrals. Whether you already receive referrals and want more or you’re new in business and want to understand how to generate business through word-of-mouth, referrals can play a crucial role. In this article, we’ll explore why referrals are not only good for your business, but how they can create significant revenue streams and pave the path to success in the long run.

In the online world, where everyone seems to be chasing the next big thing, it’s important to remember that people ultimately prefer to buy from those they know, like, and trust. While various experts might promise you countless customers by following their proven success formulas, the truth is that referrals have proven to be the best source of valuable, loyal customers. Even when buying online, trust plays a vital role. We often research businesses and individuals extensively before making a purchase. We want to feel confident and establish a certain level of trust before sharing our credit card information with a new entity.

Although online marketing has its advantages, the truth is that the human element and trust factor can be more easily established through referrals. Unlike advertising, which can be a game of chance, referrals provide a degree of predictability that sets them apart. By playing the long-term game and nurturing your referral strategy, you can lay the foundation for sustainable growth in your business.

Referrals may take time to generate, but they come with a higher conversion rate. When someone who trusts you refers you to a prospect, that prospect is already primed to do business with you. Referrals create a warm connection and significantly increase the likelihood of closing deals successfully.

To truly benefit from referrals, it’s crucial to understand the distinction between a referral and a lead. A lead involves two parties: the person giving you a contact and yourself. On the other hand, a referral requires three parties: the referrer, the referee (the client), and you (the supplier). Referrals go beyond simple contact information; they involve a personal effort from the referrer to introduce and vouch for you.

Surprisingly, while referrals are highly sought after, only a small percentage of businesses have a strategy in place to generate them. It’s essential to have a well-defined referral generation strategy to maximise the potential of this powerful business growth tool.

At the core of a successful referral strategy is the principle of “Givers Gain” or the law of reciprocity. By genuinely helping others succeed, you create a positive loop of support that ultimately benefits your own business. Building trust is the driving force behind referrals. When others trust you and feel that you genuinely care about their needs, they are more inclined to refer you to their trusted networks.

While some companies employ paid referral systems, genuine referrals are built on trust and do not require monetary compensation. A sincere “Thank you” delivered in a meaningful way can often be the best reward for a referral.
Written by Braith Bamkin

Categories
Customer Service

Exploring the Customer’s Buying Journey: Why It Matters in Your Marketing Efforts

Have you ever wondered why customers choose to buy from your business? Do you truly understand their pain points and the factors that influence their buying decisions? Without this knowledge, your marketing efforts and referral generation may fall short. It is crucial to comprehend your customers’ buying cycle in order to effectively engage with them.

The Importance of Understanding Your Customers’ Motivations

Customers make purchases because they have a problem that needs solving, regardless of the product or service. Let’s consider a simple example. During a long drive, I needed water for hydration. Although water is readily available, I chose to buy bottled water from Coles service stations due to their convenience, the opportunity to earn Flybuys points, and the ability to recycle the bottles. While other options might have been cheaper, the convenience and additional benefits made Coles my preferred choice.

This example demonstrates that even the simplest purchases are driven by the desire to solve a problem in the most effective way. Understanding your clients’ motivations to buy is essential. It’s worth noting that customers don’t always choose the cheapest option; other factors play a role in their decision-making process.

How to Discover Why Customers Buy

The easiest way to uncover why customers choose your business is simply by asking them. Engage with your clients, particularly your best ones, and inquire about their decision to purchase from you. If you have categorised your clients based on their value (e.g., gold, silver, bronze), separate the answers accordingly to identify what motivates your top clients to buy. This valuable information can help shape your future marketing strategies.
Depending on your business, there are several methods to gather this information. For traditional retailers, conversational inquiries at the point of sale or post-sale questionnaires through a CRM system can be effective. The same applies to online sales and services. For higher-value sales involving personal relationships, such as real estate or car sales, asking customers directly after the purchase is completed can yield valuable insights.

Additionally, if you receive referrals from other sources, don’t hesitate to ask the referrer what motivated them to refer you and why they thought you were the right fit for the potential client. Regularly discussing referrals with your referral partners can provide useful information as well.

Capturing the gathered data is crucial, as information is only useful when you can derive actionable results from it. Free tools like SurveyMonkey can generate quantitative reports for survey-based responses. For more qualitative insights, consider using a simple Excel spreadsheet to identify trends and cluster similar responses. Pay attention to recurring keywords, as they often indicate common themes within your data.

Identifying Pre-Purchase Engagements

Once you understand your clients’ pain points and motivations, it is vital to determine who they engage with before making a buying decision. For instance, when purchasing a house, there are numerous professionals involved in the process: accountants, financial planners, mortgage brokers, conveyancers, and removalists. Recognizing these pre-purchase engagements is essential because any of these individuals can potentially refer customers to one another, including you. By getting involved before a buying decision is made, you position yourself as a viable candidate.

Leveraging Customer Journey Insights in Marketing

Armed with knowledge about your customers’ buying journey, you can tailor your marketing efforts to address their specific pain points. By demonstrating that you understand their problems, you increase the likelihood of winning their business. Even small businesses can utilise this principle across various customer touch points, such as marketing collateral, websites, blog posts, and other communication channels. Craft language and imagery that resonates with your target market, making them feel understood and motivated to choose your business over competitors’. In the digital realm, this understanding becomes even more crucial.

Empowering Referral Partners with Customer Journey Insights

One particularly valuable application of customer journey insights is empowering your referral partners. By sharing the journey your clients go through and providing appropriate language and cues, you enable your referral partners to connect potential customers directly to your business. This significantly enhances your referral potential.

In conclusion, understanding your customer’s buying journey is a vital aspect of generating referrals and closing more sales. Collecting and analysing data, observing the pre-purchase engagements, and leveraging this knowledge in your marketing efforts can lead to significant growth. Remember that success is built step by step, and continually refining your understanding of your customers’ journey is key. As Seth Godin wisely said, “Every great company, every great brand, and every great career has been built in exactly the same way: bit by bit, step by step, little by little.”

Written by Braith Bamkin