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It seems that producers have always been encouraged to ask for referrals. Countless experts have praised the value of referrals. As LIMRA's Sales Prodpecting Techniqued: 2011 MarketScan notes, referrals are one of the most common prospecting techniques taught by companies. New customers obtained through referrals are touted as:
* Having lower acquisition costs
* Being more likely to buy
* Being less likely to churn
* Generating more revenue
But are referrals still a valuable tactic in today's electronic world or are they destined to be replaced by social media marketing? More pointedly, do they need an upgrade to remain effective? The answers to both these questions are that referrals are dtill effective, yet they could benefit from an upgrade to become more in line with current social media marketing practices.
We need to start thinking of referrals in terms of today s social media marketing. Referrals are a form of word-of-mouth (WOM) marketing. A video going viral illustrates WOM. Positive online product reviews are WOM. Social media marketing through Linkedln, Facebook, or Google+...