Where are the Referrals?
For many high performing salespeople, their continued success can be directly attributed to a steady stream of referrals, introductions and leads. Peers trying to duplicate that success often put hours of effort into strategies like networking and strategic alliances only to receive very little for the hours invested. Or, they resort to the “Do you know anybody who needs….??” style question only to hear back the “I can’t think of anybody now, but feel free to ask again,” unproductive response.
If you need a more structured approach to getting referrals, there are several Sandler techniques:
- Inner Circle / Outer Circle – a method to obtain several names quickly;
- Magic Cross – a way for you to direct the help of your referral source;
- Referral Tree – a system to help you nurture good sources of referrals; and
- Ideal Prospect – creating a precise profile of your best potential clients to guide your source in identifying higher probability leads.
However, the greater problem is that salespeople simply aren’t asking. They keep holding off asking for referrals, waiting for the “right moment.” When asked, successful salespeople comment that they ask for referrals all the time. Can that really be true? At some point can’t asking for referrals start to sound needy or pushy? Sure it can, so the next question is, what allows the effective salesperson to ask so often?
One attitude seen repeatedly is the belief that what salespeople provide, their product/service along with their personal care, has greater value to the customer than the price that was paid. Or, another view is they see their price as greatly undervaluing what the prospect receives in return. They feel as though they are “owed” something else for the gap in value. But they know that unless they bring it up for discussion, the prospect will presume that money alone was a fair exchange.
To make sure that asking for referrals avoids the “begging” label, you need to have established high personal and ROI (return on investment) value in the Pain (reason for doing business…along with the personal impact your prospect experiences) Step. At the completion of the sale, during the Post-Sell Step, you can use the client’s perceived value to more comfortably discuss the conditions for receiving something of additional value, and customers like that it’s not monetary. The salesperson may ask permission to pursue referrals while the ink is still drying on the sales agreement, and may succeed. In other cases, the discussion establishes the conditions under which the salesperson could ask, like the successful completion of a particular task in a complex project, or any time the client appears to be satisfied with the service. Many times this results in an open agreement that it’s OK to ask any time.
Salespeople who are uncomfortable having the referral conversation hope that the prospect sees the value of his or her products / services and from that “some day” referrals will be shared. This salesperson is stuck waiting for some type of signal (not yet defined) from the prospect, and if never received, never asks.
Stop waiting for your contacts to give referrals and establish the ground rules for when you can ask and you just might be pleasantly surprised. Maybe you will hear, “Now that we’re talking about it, I was wondering if you would want to talk to….” And together you can set up a great introduction.
At Your Service!
Providing superior service and working to develop long-term customers have concrete financial benefits.
A satisfied returning customer will buy more than a new customer, be enthusiastic to learn about more of your products and services, and will give them a try. Long-term customers will recommend you company to others more often than new clients; new clients want to see consistent results before they will recommend you.
The cost to see to long-term customers is generally lower, particularly in the u se of marketing time and materials. And, older customers are more likely to let you know when they’re unhappy. They have a stake in maintaining the relationship, and you have the opportunity to win them back before they’ve gone.
Providing outstanding customer service creates a positive atmosphere in you dealings with your customers, and creates long-term relationships that are the foundation of a successful business.
