Client REFERRAL GENERATION

CNN once showed a clip of the presidential candidates campaigning in New Hampshire. George W. Bush shook the hand of a supporter, saying, "I'll appreciate your vote, and please bring along a friend to vote for me too.“ It's a successfully proven concept: asking for referrals. Makes sense, doesn't it? Yet, how many of us do it as often as we should?

Another study found that a referral is up to 15 times more likely to do business with you than a cold prospect. There are a variety of ways to use referral marketing and selling. For example: Get names from someone else and you contact them. Have someone else contact a prospect and let them know you will call. Have someone else refer prospects to you every time they encounter a person who could use what you sell. The Ideal: Have someone else contact a prospect and sell for you.

Also referred to as "word of mouth" marketing and selling, it's usually the least expensive and most productive form of lead and new business acquisition you can get. I'll bet some of your very best customers haven't given you one referral. Why?  Because it's not a systematic process for you. There's not a bell that goes "ding!" to remind you to ask for a referral every time you're with a customer. But if you REALLY want a LOT of referrals. I mean an avalanche of referrals, you need to have a systematic process for getting them. If you want to get more referrals you need to implement referral s-y-s-t-e-m-s. And the referral system needs to be "transactional" and NOT "relationship-based." 

REFERRAL S - Y - S - T - E - M Systems are business processes that have predictable results and outcomes because they happen the same way ever time, day in and day out. I like to think of systems using this acronym: SAVES YOU STRESS TIME ENERGY and MONEY S Y T E M

Referral generation doesn’t have to be left to chance Referral generation doesn’t have to be left to chance.  It can be and must be a disciplined process in order to work.  In fact, most of the mega-producing salespeople have developed, through trial and error, their own process that generates a huge volume of high quality referrals from almost every one of their customers and clients. Yet, even though a logical, disciplined referral generation process may set the stage for acquiring a large number of high quality referrals from each client, just as with all other aspects of the sales process, your attitude about referrals and your business are key to making the process work.

WHY IS IT SO IMPORTANT THAT YOU RE-TRAIN YOUR MIND TO THINK AS A REFERRAL BASED SALESPERSON?  Simply because generating a large number of highly qualified referrals is a process that begins from the moment you first meet a prospect and continues throughout the relationship—hopefully for years.  In addition, as mentioned previously, the prospect and client must take your assertions of a referral-based business seriously. The process of referral generation requires that you constantly plant and water referral seeds in both your clients and prospects.  That planting and watering must become part of your nature.  You must be able to drop the seeds and then water them smoothly, without any hesitation or clumsiness.  This requires a state of mind that is ever mindful of the opportunities that present themselves, as they present themselves.

FEW TIPS ON HOW TO GET GREAT REFERRALS.

Change Your Attitude About Referrals Stop telling yourself you’re “asking for referrals” and imagine this instead: “I’m helping my clients increase their social status by making it easy for them to recommend a local business that’s easy to work with, cares about it’s customers, and can save their friends thousands of dollars” If you have trouble convincing yourself of this, your challenge may be deeper than just needing more referrals.

ASK THE RIGHT PEOPLE, AT THE RIGHT TIME So who is the right person, and when is the right time?

ASK THE RIGHT WAY Far too many reps say, "Do you know anyone else I could contact?" Instead, tie your request into the problem you just solved, the pain you eased, or the result you helped them achieve. For example, "Pat, I'm glad you were able to purchase this policy that will enable you save for children’s educational needs. By the way, who else do you know, who also is experiencing a similar problem, that might be able to also benefit from a policy like this?" Now you're putting them in the position of HELPING a friend, instead of sending a salesperson after them.

REMIND THEM OF POSSIBLE PROSPECTS If they're coming up empty, give suggestions, " ... someone in your trade group, country club, a family member, group of friends etc ...? And who else do YOU know who could benefit from this policy? How about your in-laws? Any other colleague in your department, other departments or divisions? Customers? Vendors? Fellow members of your Association? Social friends who also happen to be in sales?

USE REVERSE REFERRALS Often you have highly-coveted prospects that you would love to soften up before contacting. Comb your customer base and ask them if they know the prospects, and if so, if they could help you. For example, "By the way, I've identified several members of your association as people we could likely help in much the same way we helped you. Would you happen to know Enock at Accounts, or Moses at Sales Admin?"

ASK WHY THEY'RE A GOOD PROSPECT Say to your source, "Tell me about them," after they've given you the referral. They'll give you great info, and sell YOU on why the prospect should buy from you.

MAKE IT EASY FOR PEOPLE TO SEND YOU REFERRALS Send out stacks of your cards to your sources. Ask them to put you in their contact management program. Instead of your company name, just have them put the description of what you do into their program or Rolodex ... under "Web Page Design," for example, so they can just type that in and your name will come up when they're looking for it.

ASK OTHERS TO SELL FOR YOU Any time someone volunteers, "I know of someone who could really use you ...", don't just get the prospect's name and number. Ask the source to contact them for you. After all, they felt strongly enough about what you do to think of the prospect, why not ask them to take it a step further? Small business expert Mark LeBlanc, author of "Growing Your Business: What You Need to Know, What You Need to Do," suggests formalizing this process. He says you should brainstorm a list of the 25 people in your life who are in a position to make the greatest impact on your business or sales. Never be out of contact with these advocates more than 30 days at a time. Call, email, mail, fax, send trinkets, articles, newsletters ... anything of value to keep your name in front of them, and to keep them referring you to others. Put these people in your contact management system and schedule a follow-up every 30 days.

GET MORE REFERRALS If you run across a start-up company while prospecting, ask your contact for someone to talk to at their previous employer. Often, start-ups are spawned from larger companies, companies that are in similar businesses, buying like-items.

BE CREATIVE, THINK BIG (If the 80/20 rule applies, and it usually does 80% of your business coming from 20% of your customers), it makes sense that you want to get more customers just like your most profitable ones. So target them for referrals. Ask your best customer if they would mind drafting a testimonial letter singing your praises, mentioning how your company helped him/her, and how they highly recommends they also work with you. (Even offer to write the letter to make it easier for them.) Does it work? Like a charm, every day for those with the desire and big-mindedness to try.

Referral Cards to Hand Out Make up some cards with your logo, agency contact information, and a spot that says: “Referred by _________”. Handwrite your client’s name in the blank space and give it to them to pass along. You could mail these out or put them in your new business packet, but I’d recommend actually handing them to your clients at a time when they’ll be forced to put them in their wallet or purse.

Get Referrals Immediately After Doing a Favour According to Stanford University psychology research, when someone receives a favour, their perceived value of that favour diminishes over time. Interestingly, the perceived value of the same favour in the eyes of the person who gave the favour does the opposite, it increases as time passes. The point is that the absolute best time to ask for a referral is immediately after you have helped a client with something. Example: Part-Encashment payment, Claim on a life assured, Cash Bonus, Cash Back