The Unwritten Rules of Referrals
How to use other people's contacts, clients, and
clout
to generate a flood of new business
by John Jantsch
Nobody likes to cold call. Okay, very few people that I know like to
cold call looking for clients. For those of you that fit that description,
I have some good news. Stop it. Don’t cold call ever again. Instead, let
other people do it for you by systematically generating all the referrals
you can handle.
That’s right, many business owners have built their entire business
using this one simple, but powerful strategy. People want to do business
with other people they know, like and trust and by creating referrals you
automatically borrow upon some one else’s trust. For the small business
owner this is a crucial point.
You see referred clients, if properly qualified, will turn into your
best customers and will likely put a higher value on what you do and be
less likely to leave for price.
So you get that you should generate referrals and maybe you even do so
occasionally, but you want to generate a flood of referrals, right?
Here’s how:
Deserve referrals.
If your business or service doesn’t wow someone then who is going to
refer you? Consistently generating referrals is a bit of a mindset. Tackle
every customer you generate as though your sole purpose in serving them is
to generate a referral. Now, would that change your approach to service?
Now you’re not a sales person, you’re a service person.
Target referral sources
Just as you must target your clients you must also target those
clients, vendors, influences peddlers, or contacts most suited to generate
the kinds of referrals you are after. Then you must educate them on just
exactly who and what makes a good referral for your business.
Ask
People love to give referrals. Think about the last time you got a
great deal on something or someone went over and above to help you—what
was the first thing you did? You told everybody, right? Don’t be shy about
asking for referrals
Tell them how you intend to follow-up
The single greatest reason your friends, neighbors and clients may
resist handing over referrals is because they had a bad experience in the
past. They gave an eager sales person the names of their family and he
still hasn’t stopped hounding them. Let them know exactly what you plan to
do and how you plan to do. Ease their past concerns and don’t hound your
referrals.
Make it easy for them
Don’t just ask if they know anyone who might need what you do. Give
specifics. I know a financial advisor who wants to work in certain high
income neighborhoods. When he meets with his clients he puts a list of
50-75 names in front of them and asks if they know any one on the list. He
always comes away with several highly qualified leads.
Let them participate
Don’t just jot down names and head out into the night, ask them to
call, email or write on your behalf. Hand them a suggested letter of
introduction that explains what you do and why you will be contacting
them. Get your client to mail a letter on your behalf. Placing a call on
your client’s recommendation can open some doors but nothing beats a heart
felt letter of endorsement
Ask for testimonials
One very passive way for people to refer business to you is to ask
them to write a letter that details some of the very specific benefits
that they have gained working with your firm. The more the merrier.
Follow-up
When you acquire a lead, make sure that you act upon it quickly and
make sure that keep the communication open with your referral source. Let
them know how much you appreciate there help and always let them know if
you turn the lead into a client. Cigars and single malt scotch are my
preference.
Reward them
There are many, many ways to encourage your clients and contacts to
send you referrals. You can give them free or discounted rates on their
own needs as a reward. You can send them a thank you in the form of a
discount to pass on to a friend. You can give them cash. You can create a
contest among your clients and give away a special prize to the client who
refers the most business. You can create your own currency and give it
away as an incentive. You can partner with a non-profit agency and give a
portion of all referred business to that agency. You can send a gift to
someone’s office, such as balloon bouquet, and generate so much buzz they
are forced to talk about how great you are.
Finally don’t forget to make generating referrals an expectation of
every client relationship. Let your clients know going in that you fully
expect them to be so thrilled with the service you provide that they are
expected to give you ten qualified referral within the next six months.
Just saying that to every new client you land will make them realize
that they made a great decision to choose to do business with your firm.
John Jantsch is a marketing coach and the author of
Referral Flood - How to create a flood of new business without spending
one dime on advertising. You can get more information at
www.ReferralFlood.com.
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