Referral Madness: 9 Tips to Get More Referrals
Skip Anderson | March 25th, 2009 - 12:48 amEvery salesperson in the world loves a surprise call from a surprise prospect who tells us they were referred to us by one of our friends/customers/colleagues/family. Successfully selling a surprise referral is doubly sweet, because the mere existence of the order is evidence of our worth to two parties: first, the original customer or friend who provided the referral, and secondly, the referral who saw value in our product/service and liked us well enough to buy from us.
So if referrals are so great, and they are, why don’t more salespeople engineer ways to get them? If you’re one of the many who hasn’t found a way to get serious about getting more referrals, here are nine referral tips to boost your referral business next quarter:
1. Ask. If you want referrals, you have to ask for them. It’s impossible for a salesperson who doesn’t ask for referrals to get more referrals than a salesperson who does ask for referrals (at least when all other factors are identical). Rewards go to the people who ask for what they want. Note: Leaving your customer with a stack of your business cards, and saying, “I’m leaving a stack of my cards with you and I’d appreciate it if you would pass out my cards to people who might be interested in my widgets” is NOT asking for referrals. That’s merely passing out stacks of business cards.
2. Timing is everything. Ask for referrals at the correct time for your industry, product, and customer. Asking at the time of sale is usually a no-brainer. Other good times to ask are after a delivery or installation, after a final customer meeting to clean up loose ends, when calling the customer to keep in touch, or after you’ve provided a special level of service for your client or jumped through hoops to make something happen for your customer.
3. Make it easy for the prospect to give you names. Most customers are self-absorbed and focused on their own situation. If you’re good at what you do, there are many people who would willingly give you referrals IF you make it easy for them to do so.
4. Ask for referrals more than once. Even if they didn’t give you a referral at the time of order, maybe they will when you call to follow-up to see how they’re enjoying their new home. Don’t just ask once.
5. Don’t just ask customers, ask prospects. Many prospects will provide referrals even though they themselves haven’t purchased from you. Don’t think (incorrectly) that buying from you is a prerequisite to being eligible to provide referrals.
6. Ask your personal and family network for referrals. Your network of contacts know what you do for a living, but have you ever contacted them specifically to ask for referrals? Be direct and ask for exactly what you want. They’re already your friends and they like you; they just need to be asked for help.
7. Reward the referrer when someone refers you to someone and that someone buys. Make the reward appropriate for your industry and for the size of the sale. A simple thank-you card is appropriate in some instances, a cash gift in others. There are many effective ways to reward your referrers. Don’t forget to show your appreciation. If you do, you’ll be more likely to get additional business from your referrer.
8. Put it in writing. When I was selling full-time, I had tremendous success getting referrals by using a very simple form with three lines on it. I would hand it—along with a pen–to customers after they signed the order paperwork. I would say this: “Many of my best customers came to me as referrals from other customers. I would love it if you would give me the names of two or three people who might possibly be interested in talking to me about my widgets.” Then, I would turn my back on the prospect and staple papers or organize my file or check my phone for messages. This combination of verbiage works like magic.
9. Provide clues. Sometimes an open-ended question asking for referrals is too broad. Explain what makes a good referral in your business, even if it seems obvious. Here are some ideas: “Some people know people at their places of worship who might have a need for my tile designs; can you think of anyone?” Or, “A perfect client for me is a middle-aged woman who is frazzled, way too busy, and has a family.” Give clues to your peeps so you can help focus in on what you need.
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