Carl Maerz is a co-founder of Rocket Referrals, a startup company focused on helping businesses gain referrals from customers.
Extremely high-frequency (EHF) radio band is perhaps the next ‘big thing’ in the sphere of technology. Admittedly, it sounds like something you wouldn’t give a second glance at while wading through your kid’s science fair. But supposedly this technology is going to change the way large amounts of data (movies, photos) are transferred between devices. It is kind of like the near-field communication (NFC) that Apple Pay relies on - with one significant difference. EHF clocks at around 6 gigabytes per second whereas NFC is capable of about 400 kilobits a second. So, rather than tapping phones to transfer contact information or credit card details, you can instantly share entire photo albums. It’s pretty cool stuff.
We’ve known about EHF radio band for a long time - but it is the application which is changing. The biggest challenge is overcoming atmospheric attenuation. Now, I know you didn’t come here to read a science paper, so bear with me. Simply put, particles in our atmosphere interfere with the radio waves, so the greater the distance, the weaker the signal. As a result, two devices must be held closely together to transfer data. Not nearly as convenient as Wi-Fi (top speed of 1.35 gigabits per second), but much quicker.
Speaking of Wi-Fi, I rely on it every day to connect to the internet to share information with thousands of people. I like to compare it to traditional marketing; the bread and butter of reaching new prospects for any business. Establishing your brand, creating content, paying for advertisements on Facebook, really whatever tactic one uses to reach out to new prospects. And it works, but there are often several hurdles you must overcome to convince someone new to buy your product or services.
Casting a wide net is important to set the foundation for a marketing strategy. It builds your brand and supports your ability to close. But don’t forget about looking inward, to your existing client base, for new business. Often times companies are so busy attracting new clients that they forget to leverage promoters for referrals. One of the greatest advantages of referral marketing is the speed of closing the deal. Like EHF radio band, referrals result in lightning quick transfer of trust from a happy client to a new prospect.
Studies also show that people regularly rely on people close to them to make purchase decisions. The Nielsen Company surveyed more than 29,000 respondents and found that the advice of family and friends (77 percent) is the most persuasive when looking for information about new products or services. It seems that the more personal the product or service, the more people rely on their loved one for direction. According to a 2014 report performed by the Hinge Research Institute 87 percent of prospects begin their search for insurance by turning to friends and family.
I don’t recommend that you eschew a traditional marketing strategy and rely solely on referrals. But I do believe most businesses should give a close look to referral marketing when exploring ways to increase sales. Like EHF, referrals are nothing new. It is what you do to increase them that makes the difference.