The more you ask for referrals the more you will receive. If you create a system you will increase the number of times you ask and the quality of leads.
By Rene Zamora - www.salesmanagernow.com
Referrals are the number one desired source of leads. They have the highest closing ratio and profit margin but it tends to be an area that most sales people neglect working. They prefer to have referrals just show up on their door. You will get a few, but if you work a referral system you will realize many more leads than simply waiting for people to pass on your card. Why work so hard at cold calling when you can work on referrals? John Jantsch of Referral Food offers a simple and effective system.
Referral system (Referral Flood, by John Jantsch http://www.referralflood.com/) :
Create a referral target market(s) - you must create a target list of companies and individuals who can be motivated to refer. This can be clients or a network of related businesses.
Identify your ideal referral client - In order to receive high quality referrals you must be able to quickly communicate the exact type of person or business that makes a great referral.
Create and communicate your core referral message - you must be able to easily explain the value you can bring to anyone who is referred. " I increase sales with less effort by owners."
Design a referral education system - when you meet a potential referral source you can substantially increase the number and quality of referrals if you systematically educate them on: Who makes a great referral, what's in it for them to provide a referral, how to refer you, and the exact steps you plan to take with that referral.
Develop referral form on one page that includes:
- Title - How to refer you and your company
- Intro - short paragraph on purpose of sheet and referral offering
- How you would spot my ideal customer
- How to best express what we offer
- My customer referral process
- What others are saying
Outline your referral lead offer and system - this is the heart and soul of the system. This is where you devise the creative offer that makes people want to refer you. Example: Receive dinner for two at ______ when you refer anyone who becomes my client. Receive lunch at ______ for any three people you refer.
Create a referral conversation strategy - what good are referrals leads if they don't become referral clients? You must map out a specific set of steps that will allow you to convert your referrals leads. What do you do with a lead when the phone rings?
Identify a referral follow-up strategy - to bring your referral system full circle you need to devise two follow-up steps. 1) a way to continue to market to your referral leads that don't immediately turn into clients and 2) a way to systematically communicate the progress of a referral back to your referral sources to keep them motivated.