Why are referrals so important?
It used to make me feel so sad and angry when someone would tell me that they didn’t need or want what I was selling. The conversation would end abruptly and there wasn’t much I could do about it. Until I found out about referrals: a referral is a sales lead that comes from a customer, a friend, a colleague, a neighbor… or even a prospect that said no! You're probably shaking your head and thinking: “Are you out of your mind, why would a person who wouldn't even buy from me give me a referral?” A lot of sales aren’t concluded, not because the prospect hates you or your product/service, but because they just aren't a good fit at that time. In that case, it's the perfect opportunity to find out if they know someone who is a good fit. Don't assume the prospect hates you and what you are selling - after all, you have nothing to lose by asking!
Of all lead generation methods, referrals are the most likely to result in a sale. The reason is simple: the greatest hurdle that every sales rep faces is trust. It’s a fact, most people are predisposed to mistrust sales representatives and see them as annoying. When you enter a sales situation with a referral, your current contact is saying that you can be trusted.
When I started using this technique, my typical questions was “I understand that, for now, my company’s services are not required. Would there be anyone else in the company that could use our services?” That simple question not only helped me end a conversation on a more positive note, it helped me increase my sales. Although, sales reps usually ask for referrals following a successful sale, my experience shows that it can be asked at various points during the relationship. The important thing to remember before asking for a referral is to build a relationship with your prospect or client. Otherwise, why would he refer one of his contacts to a complete stranger?
How to get more referrals?
Statistics show that referral selling has a minimum of a 50% conversion rate. If you open your eyes, you'll see opportunities for referrals all around you:
Existing Customers
Your own customers are the easiest referral source. In fact, if you treat them right, they may well go out and do some selling for you! That’s exactly what happens when you get that wonderful call from a client’s colleague or aunt saying, “I hear you have a solution to increase our sales, I’d like to meet with you next week. Are you available Tuesday?”
It's a good idea to check in with your customers a few weeks or months after the sale. Here’s what I do: Following a sale, I take a note in my calendar to call back the customer a week or so after their initial training to find out how it went, how their staff enjoyed the training, if they have any questions, and then simply ask: “Who else do you know who can benefit from our trainings, as you have?”
New Customers
Just after you've closed a sale is the easiest time to get a referral from your new client. Because they're excited about their new purchase, they are most likely to give you the coordinates of a good contact. Some salespeople are nervous about asking for referrals at this stage because they just want to get out in case the prospect changes their mind! Unless you've used high- pressure tactics to intimidate someone into buying, there is nothing to worry about. Your new customer is probably thrilled and enthusiastic about his new purchase so ask him or her for a referral now, while their energy is at its peak!
Everyone Else
Literally anyone you meet can give you a referral. After all, the average person knows in excess of 300 other people and with social media, it’s easy to connect and make new contacts. Do you really think that none of those hundreds of people are a good fit for your products or services? Of course not! That’s why we suggest asking everyone – your hair stylist, your accountant, your neighbor, your brother’s new girlfriend, etc. You'll be amazed how many leads will drop onto your lap as a result of a brief chat.
Julie Charbonneau
Business Development and Training Director
j.charbonneau@signaturecanada.ca
Phone: 438-870-3087
Of all lead generation methods, referrals are the most likely to result in a sale. The reason is simple: the greatest hurdle that every sales rep faces is trust. It’s a fact, most people are predisposed to mistrust sales representatives and see them as annoying. When you enter a sales situation with a referral, your current contact is saying that you can be trusted.
When I started using this technique, my typical questions was “I understand that, for now, my company’s services are not required. Would there be anyone else in the company that could use our services?” That simple question not only helped me end a conversation on a more positive note, it helped me increase my sales. Although, sales reps usually ask for referrals following a successful sale, my experience shows that it can be asked at various points during the relationship. The important thing to remember before asking for a referral is to build a relationship with your prospect or client. Otherwise, why would he refer one of his contacts to a complete stranger?
How to get more referrals?
Statistics show that referral selling has a minimum of a 50% conversion rate. If you open your eyes, you'll see opportunities for referrals all around you:
Existing Customers
Your own customers are the easiest referral source. In fact, if you treat them right, they may well go out and do some selling for you! That’s exactly what happens when you get that wonderful call from a client’s colleague or aunt saying, “I hear you have a solution to increase our sales, I’d like to meet with you next week. Are you available Tuesday?”
It's a good idea to check in with your customers a few weeks or months after the sale. Here’s what I do: Following a sale, I take a note in my calendar to call back the customer a week or so after their initial training to find out how it went, how their staff enjoyed the training, if they have any questions, and then simply ask: “Who else do you know who can benefit from our trainings, as you have?”
New Customers
Just after you've closed a sale is the easiest time to get a referral from your new client. Because they're excited about their new purchase, they are most likely to give you the coordinates of a good contact. Some salespeople are nervous about asking for referrals at this stage because they just want to get out in case the prospect changes their mind! Unless you've used high- pressure tactics to intimidate someone into buying, there is nothing to worry about. Your new customer is probably thrilled and enthusiastic about his new purchase so ask him or her for a referral now, while their energy is at its peak!
Everyone Else
Literally anyone you meet can give you a referral. After all, the average person knows in excess of 300 other people and with social media, it’s easy to connect and make new contacts. Do you really think that none of those hundreds of people are a good fit for your products or services? Of course not! That’s why we suggest asking everyone – your hair stylist, your accountant, your neighbor, your brother’s new girlfriend, etc. You'll be amazed how many leads will drop onto your lap as a result of a brief chat.
Julie Charbonneau
Business Development and Training Director
j.charbonneau@signaturecanada.ca
Phone: 438-870-3087
Julie Charbonneau
Signature Canada is a leader in training employees to deliver legendary customer service while increasing sales. Since 1986, Signature’s unique training methodology has provided a measurable ROI for our customers, compelling them to return year after year.