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The Referral Engine: Teaching Your Business to Market Itself [Hardcover]

John Jantsch
4.5 out of 5 stars  See all reviews (2 customer reviews)
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Book Description

May 18 2010

The small business guru behind Duct Tape Marketing shares his most valuable lesson: how to get your customers to do your best marketing for you.

The power of glitzy advertising and elaborate marketing campaigns is on the wane; word- of-mouth referrals are what drive business today. People trust the recommendation of a friend, family member, colleague, or even stranger with similar tastes over anything thrust at them by a faceless company.

Most business owners believe that whether customers refer them is entirely out of their hands. But science shows that people can't help recommending products and services to their friends-it's an instinct wired deep in the brain. And smart businesses can tap into that hardwired desire.

Marketing expert John Jantsch offers practical techniques for harnessing the power of referrals to ensure a steady flow of new customers. Keep those customers happy, and they will refer your business to even more customers. Some of Jantsch's strategies include:

-Talk with your customers, not at them. Thanks to social networking sites, companies of any size have the opportunity to engage with their customers on their home turf as never before-but the key is listening.

-The sales team is the most important part of your marketing team. Salespeople are the company's main link to customers, who are the main source of referrals. Getting them on board with your referral strategy is critical.

-Educate your customers. Referrals are only helpful if they're given to the right people. Educate your customers about whom they should be talking to.

The secret to generating referrals lies in understanding the "Customer Referral Cycle"-the way customers refer others to your company who, in turn, generate even more referrals. Businesses can ensure a healthy referral cycle by moving customers and prospects along the path of Know, Like, Trust, Try, Buy, Repeat, and Refer. If everyone in an organization keeps this sequence in mind, Jantsch argues, your business will generate referrals like a well-oiled machine.

This practical, smart, and original guide is essential reading for any company looking to grow without a fat marketing budget.


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Customers buy this book with Duct Tape Marketing Revised & Updated: The Worlds Most Practical Small Business Marketing Guide CDN$ 13.71

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Review

"A swift, appealing read and a thorough primer on the power of letting your products and customers speak for themselves."
-Publishers Weekly


"Frankly, I had no idea how John was going to top Duct Tape Marketing. The book is a classic. But with The Referral Engine, John puts you in the driver's seat and shows you the steps to achieving marketing success without a huge budget. Go no further. Buy this now."
-Chris Brogan, coauthor of Trust Agents


"I don't think there are many people who know more about small business marketing than John does, and I'm certain that there's no one more generous in sharing tips and insights. What, exactly, are you waiting for? This book will pay for itself in one day."
-Seth Godin, author of Linchpin


"For Zappos, part of delivering a great customer experience means developing personal and emotional connections, both with employees and customers. These are the types of connections people talk about with their friends and family. This book will show you how to give people something to talk about."
-Tony Hsieh, CEO, Zappos.com


"Who knew that there's a science to referrals? Not I-but now that I know, I want you to benefit from John's expertise. In a sense, a jacket blurb is the ultimate referral, and I'm here to blurb this book because it will help you succeed in business."
-Guy Kawasaki, cofounder of Alltop

About the Author

J. C. Carleson worked for Starbucks (corporate), Baxter International and Tektronix prior to leaving the private sector to enter the Central Intelligence Agency's elite clandestine service. She was an undercover CIA officer for eight years.

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Front Cover | Copyright | Table of Contents | Excerpt | Index | Back Cover
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Most helpful customer reviews
1 of 1 people found the following review helpful
By Robert Morris HALL OF FAME TOP 10 REVIEWER
Format:Hardcover
Whatever their source of power (e.g. wind, water, coal, nuclear fission), the most effective engines throughout human history share common attributes: they are well-designed and conscientiously maintained. Moreover, whenever appropriate, they are modified to accommodate the requirements of changed circumstances. For example, steam power enabled British coal companies to remove water from their mines, then remove and transport coal to mills from which steel was transported to harbors at which steam-power ships delivered it to other harbors.

John Jantsch makes brilliant use of the engine metaphor when explaining how to formulate a strategy that drives a system that "compels customers and partners to voluntarily participate in marketing, to create positive buzz about the given products and services to friends, neighbors, and colleagues." In other words, to create or increase demand for whatever is offered by including within its marketing initiatives the active involvement of what Ben McConnell and Jackie Huba characterize as "customer evangelists." The "referral engine" really is a process rather than a mechanism. Despite what this book's subtitle claims, no business can be "taught to market itself" any more than a piano can be "taught to play Bach." However, as Jantsch explains, an organization's leaders [begin italics] can [end italics] devise and then execute the aforementioned strategy.

He cites five (actually six) of the realities to be accommodated: People make referrals because they need to ("We rate and refer as a form of survival, and, to build our own form of social currency"), All business involves risk (hence the importance of "a trust-building approach to marketing"), Nobody talks about boring businesses ("And you're probably boring on purpose" to play it safe), Consistency builds trust ("Commitment to a remarkable difference demonstrates that yours is not a gimmick"), and Marketing is a system (However, "there is no one system that works for everyone"; actually, there is another, the most tragic referral reality of all: "How can a business owner know that word of mouth is so powerful and then do so little to take advantage of it?"

These are among the dozens of passages that caught my eye, also listed to suggest the scope of Jantsch's coverage.

o Staff as customer, and, Hire for fit (15-18)
o A culture of buzz (23-24)
o Meet the Four Cs of marketing (33-37)
o An expended view of collaboration (49-53)
o Fulfilling the promise (63-66)
o Visualizing the ideal customer (73-76)
o Referral brand elements ( 80-82)
o The secret sauce: TIHWDIH
o Note: This is how we do it here (83-84)
o Your strategy action plan (90-91)
o Content is the most trusted form of advertising (101-103)
o Your content action plan (114-115)
o Hidden benefits of blogging (126-128)
o A social media system example, and, Your convergence action plan (144-147)
o The ultimate measure of marketing success (160-161)
o How to activate your network (179-183)

With meticulous care, John Jantsch presents a framework - beginning with a set-up of [the aforementioned] realities - a set of overarching strategies, high- and low-tech engagement tools, and a methodology for finding the perfect culture of referral in almost any organization, whatever its size and nature may be. That said, he adds, "the ideal referral system, based on a strategy that gets people voluntarily talking about your business, can eliminate the need to ever actually ask for referrals again." Meanwhile, this book will help you to craft such a strategy so that your employers, friends, and neighbors as well as customers become your "evangelists."
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1 of 1 people found the following review helpful
4.0 out of 5 stars lots of good info Jun 10 2010
Format:Hardcover
This book is packed with excellent information. Be prepared by having a note pad to take notes or at least a highlighter to outline important points.
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Most Helpful Customer Reviews on Amazon.com (beta)
Amazon.com: 4.5 out of 5 stars  72 reviews
153 of 169 people found the following review helpful
5.0 out of 5 stars My Honest Review May 13 2010
By John B. Spence - Published on Amazon.com
Format:Hardcover|Amazon Verified Purchase
I have read more than 100 business books a year for the last 21 years -- and here is my review on "The Referral Engine."
43 of 45 people found the following review helpful
3.0 out of 5 stars A Few Useful Chapters Oct 10 2010
By loka - Published on Amazon.com
Format:Hardcover|Amazon Verified Purchase
This book has 13 chapters (the last chapter gives an overall view). I would have to agree with what fellow reader S. A. Mccullough (who gave this book a 1-star rating) said with regards to the first 5 chapters of the book - incoherent and has little to do with referral generation.

Real juice flows from the following chapters:
6. Using valuable content as marketing material
7. How to use Social Media, Blogs and tools like podcast and videos to engage customers
9. How to form win-win partnership with other businesses (both closely related and remote) to generate referrals to both partners

However, if you have read books like Get Content Get Customers : Turn Prospects into Buyers with Content Marketing; Satisfied Customers Tell Three Friends, Angry Customers Tell 3,000: Running a Business in Today's Consumer-Driven World; Word of Mouth Marketing, Revised Edition: How Smart Companies Get People Talking like I did, then I can assure you that the ONLY chapter you would find useful and new is Chapter 9 (how to form win-win partnership for referral generation). If you have not read these books, then The Referral Engine might be a good overall guide for you (but still, skip chapters 1 to 5) and that is why, assuming you haven't read those books, I gave it 3 stars.

2 stars have to be taken away regardless of whether you are new to the topic of referral generation or not due to the book's poor organization. It lacks a readily useable framework - the author does mention a "4Cs framework" - Content, Context, Connection and Community - but sadly the chapters are not organized around the 4Cs, in fact, they are rarely even mentioned throughout the book, and readers are left with the difficult task of figuring out which part of the book falls into which of the 4Cs.

To me, this book is quite a disappointment, especially when it has so many 5-star reviews.
34 of 40 people found the following review helpful
5.0 out of 5 stars Referrals Matter, This Book Matters More May 17 2010
By Jim Kukral - Published on Amazon.com
Format:Hardcover
John has crafted a strong message for all of us who want to stop spending millions on advertising that doesn't produce results. That message is, use the power of referrals to drive more sales and leads for your business or brand. It's not that hard either, if you know how to do it. The Referral Engine will tell you what to do. Buy this book.
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