do not refer work back to the general practitioner or solicitor. Conflict
of interest, where a professional cannot work for two competitors at
the same time, may be a further reason for a professional referral.
Referrals made by a manufacturer to specific customer groups may
be considered within this category; for example, a computer hardware
or software manufacturer may refer a customer to a value-added
reseller (VAR), who packages hardware, software, training and service
for customers who need special help.
Where an opportunity exists to systematically refer work back to the
referrer or to offer some form of inducement to them to refer further
work these become reciprocal referrals or incentive referrals, which are
discussed shortly.
2 Expertise referrals. Referrals may be sought by a customer because of the
referrer’s specialist expertise or knowledge. For example, a business
school academic may be asked to recommend a management consulting
firm, a market research firm or advertising agency to a company; or a
technical expert may recommend the use of a particular testing labora-
tory. Often such referrals are made on an irregular or ad hoc basis.
In such cases, professionals from a range of different industry sectors
receive acknowledgement of their professional competence and knowl-
edge of a market in particular or business in general by making suitable
referrals.As a result, the person making the referral receives thanks and
on-going goodwill from their customer or contact. Further, their pro-
fessional status and their reputation as an informed and knowledgeable
professional may be enhanced. It is in every professional’s best interest
to be willing to help and offer advice, either solicited or unsolicited, to
their clients.
3 Specification referrals.These referrals cover the situation where an organ-
ization or person specifies or strongly recommends the use of a partic-
ular product or service. For example, architects building a number of
superior homes may mandate, within their specification, that Miele elec-
trical appliances such as dishwashers and ovens are used within every
kitchen. A further example would be where a real estate agent insists
that a particular removal firm undertakes the transportation of his or
her client’s household contents.
4 Substitute and complementary referrals.These groups have been identified
by Herriott^7 and could be viewed as specific cases of professional refer-
rals. Substitute referrals occur in circumstances where organizations
which are at over-capacity, have long lead times to undertake work, or
cannot fulfill a specific need may refer a customer to one of its com-
petitors. Such referrals may not be made voluntarily. Another example
The referral and influence market domains 229