We all know the importance of referrals for building business, but what's really important is that those referrals are high-quality referrals. Today sales expert Paul McCord shares the secrets to generating high-quality referrals that get results.
From the time we enter the sales industry we've heard that referrals are by far the best prospecting and marketing method in existence. Yet, very few of us actually get very many high quality referrals.
Certainly some of us manage to get a name and phone number here and another there. A few of us will manage to get several. However, most of these "referrals" are worthless--just names and phone numbers of people or businesses that have no interest in or need for or can't afford our product or service.
Nevertheless, there are a few salespeople and business owners who have found a way to not only generate more than just a few referrals, but somehow they manage to generate enough high quality referrals to run very successful sales practices almost exclusively from the referrals they receive from their clients.
Do they have some great secret the rest of us don't know?
In a sense, they do know something most of us don't. They've learned that what most of us are doing to get referrals--just asking a question such as, "Ms. Client, do you know of anyone else that I might help"--doesn't work.
Moreover, they have learned ways that do work.
Let's look at five of the most basic things these mega-referral producers have learned:
Ask for referrals: Sounds stupid right? If you don't ask, how do you expect to get them? Unfortunately, over 50% of salespeople simply never ask--and the majorities who do 'ask,' really don't ask for referrals.
Really Ask: Asking means a direct request for referrals. Studies have also shown that the majority of salespeople and business owners who ask for referrals don't really ask--they suggest. They'll say something like "Don, if you happen to run across someone who could use my service, would you give them one of my cards?" and then they hand the client a bunch of cards--that usually go straight into the trash.
Let the client know who's a good referral: Very few salespeople ever define for the client exactly who a good referral is. They assume the client knows. Bad assumption. Clients aren't in your business. Why should they know? You have to let them know exactly who you're looking for.
Make the referral easy for them: Instead of making your client come up with the referral, do the work for them. During the course of the sale do some detective work and figure out who your client knows that you know you want to be referred to. Then, when it comes time to ask for referrals, make it easy for them. Say something such as, "Ms. Client, I've been trying to connect with Joe Blow at XYZ Company for quite some time and just haven't been able to make the connection. It dawned on me that you might know Joe. Do you know him?"
If I've done my homework well, I know--or at least have good reason to believe--the answer will be yes.
If I know my client trusts me and that I've done a good job for her, I then suggest the referral: "Great. Would you be comfortable introducing me to him?"
My client doesn't have to wonder who might make a good referral for me. She doesn't have to think. She doesn't have to do anything other than to utter one simple word, "yes." It's a lot easier for a client to say "yes" than it is to figure out who would be a good referral. It takes no time. It takes no effort. It's easy. I get a referral to someone that I know I want to be referred to.
Don't get names and phone numbers, get introduced. A name and phone number is just a name and phone number, not a referral. Get introduced to the prospect through an introduction letter, phone call, or lunch meeting.
Mega-referral producers have a detailed process they use to generate a large number of high quality referrals from every one of their clients--and even prospects. They have developed a disciplined and effective procedure they use with each client that leads to a predictable end--receiving a large number of high quality referrals.
But even without learning the process they use, if you simply implement these 7 simple tips, you'll increase both the number and quality of the referrals you receive from your clients immediately.
Paul McCord, a leading Business Development Strategist and president of McCord Training, works with companies and sales leaders to help them increase sales and profits by finding and connecting with high quality prospects in ways prospects respect and respond to. An internationally recognized author, speaker, trainer and consultant, Paul's clients range from giants such as Chase, New York Life, Siemens, and GE, to small and mid-size firms, as well as individual sales leaders. He is the author of the popular Sales and Sales Management Blog
Showing posts with label referrals. Show all posts
Showing posts with label referrals. Show all posts
Wednesday, March 16, 2011
Wednesday, October 13, 2010
Are You Referable?
We talk a lot about the importance of referrals for your business, so I thought this guide from sales trainer Kelley Robertson was a great tool. Make yourself more referable by following his easy tips.
Referrals are one of the best ways to generate new sales. Here are five ways you can become more referable.
You can effectively articulate what you do. I have met numerous people at networking events who have failed to help me understand exactly what they do. To become referable you MUST be able to clearly state your value proposition.
You can describe your ideal client. At a recent networking meeting, I was asked what type of companies I work with. My answer was somewhat vague because I work with a wide range of organizations. It would have more effective for me to state who my ideal client is instead of listing the different industries I have worked with.
You refer people to others. One of the best ways to become more referable is to refer business to others. When you meet people, look for ways to connect people in your network to those individuals. When you refer business, you generate business.
You acknowledge the referrer. I have recommended other trainers and speakers to people and even though those individuals secured business because of that referral, I haven't always received thanks for that referral.
You consistently execute. Whether you sell a product or service, people want to know that you can deliver what you say you will. That means offering value or creating an experience that meets or exceeds your customers' expectations.
As President of The Robertson Training Group, Kelley has helped thousands of professionals improve their business results with his engaging approach to sales training and speaking. Learn more at www.robertsontraininggroup.com
Referrals are one of the best ways to generate new sales. Here are five ways you can become more referable.
You can effectively articulate what you do. I have met numerous people at networking events who have failed to help me understand exactly what they do. To become referable you MUST be able to clearly state your value proposition.
You can describe your ideal client. At a recent networking meeting, I was asked what type of companies I work with. My answer was somewhat vague because I work with a wide range of organizations. It would have more effective for me to state who my ideal client is instead of listing the different industries I have worked with.
You refer people to others. One of the best ways to become more referable is to refer business to others. When you meet people, look for ways to connect people in your network to those individuals. When you refer business, you generate business.
You acknowledge the referrer. I have recommended other trainers and speakers to people and even though those individuals secured business because of that referral, I haven't always received thanks for that referral.
You consistently execute. Whether you sell a product or service, people want to know that you can deliver what you say you will. That means offering value or creating an experience that meets or exceeds your customers' expectations.
As President of The Robertson Training Group, Kelley has helped thousands of professionals improve their business results with his engaging approach to sales training and speaking. Learn more at www.robertsontraininggroup.com
Thursday, September 2, 2010
Three Steps to Getting High Quality Referrals from Your Clients
Referrals are essential to building a business that lasts. They not only build your sales, they build your reputation as well. Today sales trainer Paul McCord shares three secrets that will help you get those high-quality referrals you deserve!
Are you finding that you're just not getting the number of quality referrals you want from your clients? Chances are you said yes because that's the case with most sellers. Oh, sure, we all have some clients that will give us referrals all day long. Just ask and they'll give you name after name. Other clients, the majority, aren't nearly as generous with their referrals.
The biggest problem in both cases is so often the referral we get isn't much better than pointing at a name in the phonebook at random.
How can you guarantee that you get great referrals? Simple. Make sure the client gives you a great referral by finding the referral for them to give you, rather than relying on them coming up with a quality referral to give.
The reality is that clients really don't know who we're looking for and most of them just don't have a real incentive to invest the time and energy to come up with a great referral for us.
But we know who is a great referral for us. And certainly we're willing to invest the time and energy to find a great referral (if we're not, we have some real serious issues to deal with).
Since we're the one with the need; and we're the one with the desire; and we're the one who knows who makes a good referral for us, why would we rely on anyone else other than our self to come up with the referral?
So how can we come up with the referral for our client to give us?
Here are three steps to guaranteeing you get great referrals from your clients:
1.Get Your Client On-board to Give Referrals. Most sellers wait until after the sale has been completed before they bring up the idea of referrals. Bad idea.
Most clients need time to get comfortable with the idea of giving referrals, so bring up referrals early in the relationship. Don't ask for referrals; just let your client know that your business is built on referrals and then drop referral seeds as the sale progresses. Since your prospects and clients aren't stupid, if they hear you mention referrals often in a casual manner, they'll get the impression referrals are important to you and they will be expecting you to ask for them at some point.
2. Find Out Who Your Client Knows. We've already established that in order to get great referrals you have to do the work for your client, so do it by discovering during the course of the relationship who they know that you know you want to be referred to.
How do you find out? Through small-talk (who do they mention in conversation they know); paying attention to what's in their environment (pictures, association directories, membership plaques, and such); their background (where did they work previously); their work (what vendors and suppliers do they interact with). Your job is to be a detective and to uncover the relationships they have with people or companies that you know you want to be referred to. The more you uncover the more quality referrals you uncover.
3. Don't Ask for Referrals, Ask for THE Referral. Now when it comes time to ask for referrals, you're not going to be like every other seller and ask a weak question such as, "Donna, do you happen to know anyone else (or another company) that might be able to use my products or services (or that I can help--or any other such weak question)?"
Instead you're going to ask for a specific referral: "Donna, I've been trying to connect with David Jones for some time without success. You mentioned that you've worked with David for several years, would you be comfortable introducing me to him?" You know she knows David. You have reason to believe David is a good prospect for you. Don't waste Donna's time with that weak general referral question; ask to get connected to a person you know she knows that you know you want to connect with.
Referrals can be the foundation of your sales business if you just develop the skills necessary to be a referral-based salesperson. If Donna knows three people or companies you know you want to be referred to and you can get introductions to them from her, how much time and energy have you saved getting those three introductions through referrals instead of cold calling or sending out direct mail or hoping to bump into them at a networking event?
Forget what you've been taught about asking for referrals. Referral generation is a PROACTIVE process where you do the work, not your client. Your client doesn't have the motivation, you do. They don't have the understanding of who makes a good referral like you do. Your client doesn't have the time to invest in figuring out a good referral like you do. It's your business, not theirs. Make it easy to give quality referrals--you'll get a ton of them if you do.
Paul McCord, a leading Business Development Strategist and president of McCord Training, works with companies and sales leaders to help them increase sales and profits by finding and connecting with high quality prospects in ways prospects respect and respond to. An internationally recognized author, speaker, trainer and consultant, Paul's clients range from giants such as Chase, New York Life, Siemens, and GE, to small and mid-size firms, as well as individual sales leaders. He is the author of the popular Sales and Sales Management Blog.
Are you finding that you're just not getting the number of quality referrals you want from your clients? Chances are you said yes because that's the case with most sellers. Oh, sure, we all have some clients that will give us referrals all day long. Just ask and they'll give you name after name. Other clients, the majority, aren't nearly as generous with their referrals.
The biggest problem in both cases is so often the referral we get isn't much better than pointing at a name in the phonebook at random.
How can you guarantee that you get great referrals? Simple. Make sure the client gives you a great referral by finding the referral for them to give you, rather than relying on them coming up with a quality referral to give.
The reality is that clients really don't know who we're looking for and most of them just don't have a real incentive to invest the time and energy to come up with a great referral for us.
But we know who is a great referral for us. And certainly we're willing to invest the time and energy to find a great referral (if we're not, we have some real serious issues to deal with).
Since we're the one with the need; and we're the one with the desire; and we're the one who knows who makes a good referral for us, why would we rely on anyone else other than our self to come up with the referral?
So how can we come up with the referral for our client to give us?
Here are three steps to guaranteeing you get great referrals from your clients:
1.Get Your Client On-board to Give Referrals. Most sellers wait until after the sale has been completed before they bring up the idea of referrals. Bad idea.
Most clients need time to get comfortable with the idea of giving referrals, so bring up referrals early in the relationship. Don't ask for referrals; just let your client know that your business is built on referrals and then drop referral seeds as the sale progresses. Since your prospects and clients aren't stupid, if they hear you mention referrals often in a casual manner, they'll get the impression referrals are important to you and they will be expecting you to ask for them at some point.
2. Find Out Who Your Client Knows. We've already established that in order to get great referrals you have to do the work for your client, so do it by discovering during the course of the relationship who they know that you know you want to be referred to.
How do you find out? Through small-talk (who do they mention in conversation they know); paying attention to what's in their environment (pictures, association directories, membership plaques, and such); their background (where did they work previously); their work (what vendors and suppliers do they interact with). Your job is to be a detective and to uncover the relationships they have with people or companies that you know you want to be referred to. The more you uncover the more quality referrals you uncover.
3. Don't Ask for Referrals, Ask for THE Referral. Now when it comes time to ask for referrals, you're not going to be like every other seller and ask a weak question such as, "Donna, do you happen to know anyone else (or another company) that might be able to use my products or services (or that I can help--or any other such weak question)?"
Instead you're going to ask for a specific referral: "Donna, I've been trying to connect with David Jones for some time without success. You mentioned that you've worked with David for several years, would you be comfortable introducing me to him?" You know she knows David. You have reason to believe David is a good prospect for you. Don't waste Donna's time with that weak general referral question; ask to get connected to a person you know she knows that you know you want to connect with.
Referrals can be the foundation of your sales business if you just develop the skills necessary to be a referral-based salesperson. If Donna knows three people or companies you know you want to be referred to and you can get introductions to them from her, how much time and energy have you saved getting those three introductions through referrals instead of cold calling or sending out direct mail or hoping to bump into them at a networking event?
Forget what you've been taught about asking for referrals. Referral generation is a PROACTIVE process where you do the work, not your client. Your client doesn't have the motivation, you do. They don't have the understanding of who makes a good referral like you do. Your client doesn't have the time to invest in figuring out a good referral like you do. It's your business, not theirs. Make it easy to give quality referrals--you'll get a ton of them if you do.
Paul McCord, a leading Business Development Strategist and president of McCord Training, works with companies and sales leaders to help them increase sales and profits by finding and connecting with high quality prospects in ways prospects respect and respond to. An internationally recognized author, speaker, trainer and consultant, Paul's clients range from giants such as Chase, New York Life, Siemens, and GE, to small and mid-size firms, as well as individual sales leaders. He is the author of the popular Sales and Sales Management Blog.
Tuesday, June 16, 2009
Refine Your Referral Requests
While referrals are a great way to fill your pipeline, they can be a lot of extra, unnecessary work if they're not quality referrals. Today sales expert Kendra Lee is giving us the advice we need to ask for - and get - referrals that are a great fit. Follow her recommendations and you won't have to chase sub-par referrals any longer!
According to Lee, low-quality referrals happen when we leave up to the client who they should refer us to. "If you really want to be successful building your pipeline with referrals, you need to take a step back and think about what types of introductions you really want. Just any old referral won't get you your next hot prospect. When you leave it up to your customer to figure out who they think would be a good referral, they won't consider all the qualification points you do."
They might not recognize that they're a great client because they're:
--focused on issues that fall within your offering's sweet spot
--using your solutions exactly like you want other customers to
--in a specific industry or a certain size company
--treating you as a trusted advisor
"Suddenly you find yourself with a referral that's less than ideal," continues Lee. "It's too small a company, has a completely different set of needs than you address, or is outside your industry expertise."
"Because the referral came from one of your top clients, you either have to figure out how to say "thanks, but no thanks" or follow-up then explain to your customer why it wasn't the best fit. It's possible you could actually waste as much time following up on this unqualified introduction as you would cold calling!"
"A poor referral from a great client puts you in an awkward position - all because you were trying to shorten your new business development cycle through referrals," says Lee. "Mediocre connections won't help you fill your pipeline. No, you only want top quality referrals. Your desire is to get introduced to companies and contacts that really need your offerings and will want to talk with you. You're looking for new connections with the characteristics of your best clients."
Don't limit yourself to asking for referrals that are similar in size, industry, or region.
"Broaden your expectations to seek introductions to people who'll implement and appreciate your offerings like your best clients do. Ask for contacts who'll want to work closely with you and welcome your expertise and recommendations."
"To get referrals that fit such specific qualifications, you need to frame who is a great connection when you ask. Tell your customer what types of companies make the best match for your offerings."
There are two parts to framing your referral request.
--Say, "someone like you who..." - and fill in the blank with the profile of your ideal referral.
--Then add, "someone who needs..." - and include the classic challenges, issues or needs you address.
"What you're doing is creating a picture of your ideal referral for your client," explains Lee. "Now as they mentally search through all their colleagues, they can easily determine which ones to recommend. You've taken the guesswork out of it."
"Call me a referral snob if you will, but if we're going to ask for referrals, spend precious time following up on them, and then work them with due diligence, don't we deserve to get only the very best introductions? I sure think so!"
Kendra Lee is the author of the award-winning book "Selling Against the Goal" and president of KLA Group. Specializing in the IT industry, KLA Group works with companies to break in and exceed revenue objectives in the SMB segment. To learn more visit www.klagroup.com.
According to Lee, low-quality referrals happen when we leave up to the client who they should refer us to. "If you really want to be successful building your pipeline with referrals, you need to take a step back and think about what types of introductions you really want. Just any old referral won't get you your next hot prospect. When you leave it up to your customer to figure out who they think would be a good referral, they won't consider all the qualification points you do."
They might not recognize that they're a great client because they're:
--focused on issues that fall within your offering's sweet spot
--using your solutions exactly like you want other customers to
--in a specific industry or a certain size company
--treating you as a trusted advisor
"Suddenly you find yourself with a referral that's less than ideal," continues Lee. "It's too small a company, has a completely different set of needs than you address, or is outside your industry expertise."
"Because the referral came from one of your top clients, you either have to figure out how to say "thanks, but no thanks" or follow-up then explain to your customer why it wasn't the best fit. It's possible you could actually waste as much time following up on this unqualified introduction as you would cold calling!"
"A poor referral from a great client puts you in an awkward position - all because you were trying to shorten your new business development cycle through referrals," says Lee. "Mediocre connections won't help you fill your pipeline. No, you only want top quality referrals. Your desire is to get introduced to companies and contacts that really need your offerings and will want to talk with you. You're looking for new connections with the characteristics of your best clients."
Don't limit yourself to asking for referrals that are similar in size, industry, or region.
"Broaden your expectations to seek introductions to people who'll implement and appreciate your offerings like your best clients do. Ask for contacts who'll want to work closely with you and welcome your expertise and recommendations."
"To get referrals that fit such specific qualifications, you need to frame who is a great connection when you ask. Tell your customer what types of companies make the best match for your offerings."
There are two parts to framing your referral request.
--Say, "someone like you who..." - and fill in the blank with the profile of your ideal referral.
--Then add, "someone who needs..." - and include the classic challenges, issues or needs you address.
"What you're doing is creating a picture of your ideal referral for your client," explains Lee. "Now as they mentally search through all their colleagues, they can easily determine which ones to recommend. You've taken the guesswork out of it."
"Call me a referral snob if you will, but if we're going to ask for referrals, spend precious time following up on them, and then work them with due diligence, don't we deserve to get only the very best introductions? I sure think so!"
Kendra Lee is the author of the award-winning book "Selling Against the Goal" and president of KLA Group. Specializing in the IT industry, KLA Group works with companies to break in and exceed revenue objectives in the SMB segment. To learn more visit www.klagroup.com.
Tuesday, May 19, 2009
Homegrown Sales Sources
If you've been trying to get in with a new prospect with no luck, the solution to your problem could be right inside your office. Referral expert Joanne Black shares what you need to know to tap into the sales leads within your own office.
"I am always amazed when my clients discover that a person in their San Francisco office has an ideal contact for their Atlanta, Prague, or Shanghai offices," says Black. "I was conducting a call with representatives from my client's Chicago, Portland, Toronto, and Los Angeles offices. One of the salespeople in Portland described a new client he was about to win. His counterpart in Los Angeles said they were doing business with that company in Southern California. The two decided to link up and work on a strategy together."
"It's time to think beyond yourself, your sales executives, and sales support as the only members of your team," continues Black. "Think beyond your immediate team, and beyond your geographic office. Think about the obvious: Think of everyone within your company or organization as a much-needed, ready-to-be-activated resource to grow your business - exponentially."
The Secret: Look Within
Salespeople within your company have huge potential to help you expand your reach. They know people in your territory - in the companies you're targeting. Everyone, regardless of his or her role in the sales organization, is part of your sales team. Your employees and co-workers can help you tap into more industry knowledge. They may have insight into an organization's culture, structure, or politics - and may be a surprisingly valuable sounding board to discuss account strategy.
Your best resource for potential new business is all around you. Everyone in your organization knows dozens and maybe even hundreds of other people. Who do you think understands the value of your organization better than the people who work there? Who could possible have more invested in your company's success? Your job will be to bring everyone into the sales process. Start by finding out who they know. To do that, you need to help everyone in your organization understand that they are part of the sales team - whether they have an official sales title or not.
Where did your fellow employees work before they came to your company? Who is their next door neighbor? What about their brother who works at your prospect company? Spend the time to talk to them, learn about their history, and what is important to them. Help everyone to understand that with every sale, your company - their company - prospers and their job becomes more secure.
With over 30 years of sales training and consulting experience, Joanne Black's philosophy is that no one should ever have to make a cold call. Some may see this as heretical thinking, but for Joanne Black - and her clients - there is an alternative. It's called referral selling. Learn more at www.nomorecoldcalling.com
"I am always amazed when my clients discover that a person in their San Francisco office has an ideal contact for their Atlanta, Prague, or Shanghai offices," says Black. "I was conducting a call with representatives from my client's Chicago, Portland, Toronto, and Los Angeles offices. One of the salespeople in Portland described a new client he was about to win. His counterpart in Los Angeles said they were doing business with that company in Southern California. The two decided to link up and work on a strategy together."
"It's time to think beyond yourself, your sales executives, and sales support as the only members of your team," continues Black. "Think beyond your immediate team, and beyond your geographic office. Think about the obvious: Think of everyone within your company or organization as a much-needed, ready-to-be-activated resource to grow your business - exponentially."
The Secret: Look Within
Salespeople within your company have huge potential to help you expand your reach. They know people in your territory - in the companies you're targeting. Everyone, regardless of his or her role in the sales organization, is part of your sales team. Your employees and co-workers can help you tap into more industry knowledge. They may have insight into an organization's culture, structure, or politics - and may be a surprisingly valuable sounding board to discuss account strategy.
Your best resource for potential new business is all around you. Everyone in your organization knows dozens and maybe even hundreds of other people. Who do you think understands the value of your organization better than the people who work there? Who could possible have more invested in your company's success? Your job will be to bring everyone into the sales process. Start by finding out who they know. To do that, you need to help everyone in your organization understand that they are part of the sales team - whether they have an official sales title or not.
Where did your fellow employees work before they came to your company? Who is their next door neighbor? What about their brother who works at your prospect company? Spend the time to talk to them, learn about their history, and what is important to them. Help everyone to understand that with every sale, your company - their company - prospers and their job becomes more secure.
With over 30 years of sales training and consulting experience, Joanne Black's philosophy is that no one should ever have to make a cold call. Some may see this as heretical thinking, but for Joanne Black - and her clients - there is an alternative. It's called referral selling. Learn more at www.nomorecoldcalling.com
Wednesday, November 19, 2008
"I Can't Think of Anybody Right Now"
The Whetstone Group run by sales trainers Jim Dunn and John Schumann has a weekly newsletter that arrives in a fun format: a sales problem, followed by a diagnosis and prescription. So, what does the doctor order for the situation in which you ask a client for a referral and they reply, "I can't think of anybody right now"? Read on for the diagnosis and prescription!
Problem: Tom heard that getting referrals was the easiest way to get new customers. So he selected 20 of his best clients and called them. He was pleased that almost all of his clients said they would be happy to help him. The problem was that he didn't actually get any introductions. What he did get was a very common response that sounded like this; "I can't think of anybody right now. I'll have to get back to you."
Diagnosis: When you ask for a referral, you are asking for a response that can require a great deal of thought. You are asking someone to intellectually identify with what you do and who you do it with, then sort through their own database of people, who they know and what they do, then analyze past conversations and select a few names. This is often expected in a few seconds and can create a little psychological pressure. That is why people generally choose to ask for time to alleviate the pressure. And, of course, when the pressure is off, your request is forgotten.
Prescription: Pressure will cause people to become uncomfortable and end the dialogue. The key to avoiding this problem is to guide your client through this referral asking process in a gentle and nurturing way. Getting referrals is an emotional communication process with several questions and steps. The first step is to get your client to remind himself that your past relationship has been positive and that there is nothing that you have neglected that could be improved. Secondly, ask for their permission. This might sound like, "How would you feel about referring people to me?" Since 80% of the time you will get a positive response to this question, proceed by thanking them and explaining the reason why you are asking for their help. Remind your client of what you do and whom you do it with by restating your introductory pain probe. Gently ask who they know who may have one or more "pains".
You may even have to help by gently suggesting sources for the names you are looking for like associations, golf partners, social groups, competitor companies or suppliers. When your client gives you a name, don't forget to thank them. Ask for more information about the prospect and an introduction. Remember to respect that your client has agreed to help you and they may feel they are going out of their way. Psychologically they will need to feel good about the whole process. Referrals are the best way to get more clients when you know how to do it right.
Learn more about The Whetstone Group at www.whetstonegroup.com
Problem: Tom heard that getting referrals was the easiest way to get new customers. So he selected 20 of his best clients and called them. He was pleased that almost all of his clients said they would be happy to help him. The problem was that he didn't actually get any introductions. What he did get was a very common response that sounded like this; "I can't think of anybody right now. I'll have to get back to you."
Diagnosis: When you ask for a referral, you are asking for a response that can require a great deal of thought. You are asking someone to intellectually identify with what you do and who you do it with, then sort through their own database of people, who they know and what they do, then analyze past conversations and select a few names. This is often expected in a few seconds and can create a little psychological pressure. That is why people generally choose to ask for time to alleviate the pressure. And, of course, when the pressure is off, your request is forgotten.
Prescription: Pressure will cause people to become uncomfortable and end the dialogue. The key to avoiding this problem is to guide your client through this referral asking process in a gentle and nurturing way. Getting referrals is an emotional communication process with several questions and steps. The first step is to get your client to remind himself that your past relationship has been positive and that there is nothing that you have neglected that could be improved. Secondly, ask for their permission. This might sound like, "How would you feel about referring people to me?" Since 80% of the time you will get a positive response to this question, proceed by thanking them and explaining the reason why you are asking for their help. Remind your client of what you do and whom you do it with by restating your introductory pain probe. Gently ask who they know who may have one or more "pains".
You may even have to help by gently suggesting sources for the names you are looking for like associations, golf partners, social groups, competitor companies or suppliers. When your client gives you a name, don't forget to thank them. Ask for more information about the prospect and an introduction. Remember to respect that your client has agreed to help you and they may feel they are going out of their way. Psychologically they will need to feel good about the whole process. Referrals are the best way to get more clients when you know how to do it right.
Learn more about The Whetstone Group at www.whetstonegroup.com
Tuesday, October 28, 2008
Don't Use My Name!
Getting a referral from a friend is great - up until the moment they ask you not to mention their name! All of a sudden your referral is a cold call. Check out this story from business consultant Diane Helbig and remember her advice to make sure you have a good quality referral.
I have a friend - we'll call him Bill. Bill told Ralph that he was targeting CPAs. Ralph said, 'One of my clients is a CPA. Here's his contact info.' So, Bill called the CPA and left a message. A day later Ralph called Bill and asked how it went with the CPA. Bill explained that he had left a message. Then Ralph told Bill that the CPA had called him and asked him not to give his name out anymore. Yikes!
This kind of story is being played out every day all over the world. And the damage it does is deep and wide. My other friend Betty was in a leads group the other day and said she was targeting Human Resource professionals. Roger passed her a lead but had written on it 'don't use my name.' Huh? Don't use my name? Again, this happens daily. 'Roger' doesn't realize the harm he is inflicting - on himself!
How are these referrals? According to the dictionary, a referral is 'a person recommended to someone or for something.' The dictionary definition of 'recommend' is 'to praise or commend to another as being worthy or desirable; endorse.' 'Recommend; worthy; endorse.' Interesting words.
First I'd like to address the damage caused by these actions.
The referrer (and I use the term lightly) damages himself for the following reasons:
--The person he gives the referral to feels that his referrals are empty.
--The person he refers others to becomes unhappy with him.
--People talk and his behavior will be shared with others, thereby damaging his relationships with them.
The person who received the 'referral' is damaged because:
--In the first example he can't approach those referrals again. They have just experienced him in a negative way.
-- Now his pool of referral sources has gotten smaller. He knows now that he can't trust that guy to provide him with quality referrals.
--Getting a referral that says 'don't use my name' is really getting just a name. It's a cold call. He's no better off than he was before.
So let's talk about quality referrals.
The best way to get quality referrals is to be known as someone who gives them. Certain elements must exist in order for a referral to have quality.
They are:
1. You know the person you are going to refer very well.
---You are aware of their professionalism, their performance, their customer service.
---You believe in them completely.
---You would do, or have done, business with them.
2. You know the person you are referring to very well.
---You know what their needs are.
---You know how they feel about being contacted by strangers.
---You know what they look for in a vendor
3. You know the best way to conduct the referral.
---Do you make an introduction?
---Do you contact the person for them?
---Do you provide background information to your associate so they are equipped when approaching?
"Knowing the answers to these items will help you in creating a referral system that works consistently and productively," says Helbig. "Then as you work your system, you'll position yourself as a networking pro. In addition, you'll find you are referred more often because you can be trusted. Did you notice? This system treats everybody fairly and respectfully." Quite a difference from 'don't use my name!'
Diane Helbig is a Professional Coach, and President of Seize This Day Coaching. She works one-on-one and in groups with business owners, entrepreneurs, and salespeople. Visit her website at http://www.seizethisdaycoaching.com
I have a friend - we'll call him Bill. Bill told Ralph that he was targeting CPAs. Ralph said, 'One of my clients is a CPA. Here's his contact info.' So, Bill called the CPA and left a message. A day later Ralph called Bill and asked how it went with the CPA. Bill explained that he had left a message. Then Ralph told Bill that the CPA had called him and asked him not to give his name out anymore. Yikes!
This kind of story is being played out every day all over the world. And the damage it does is deep and wide. My other friend Betty was in a leads group the other day and said she was targeting Human Resource professionals. Roger passed her a lead but had written on it 'don't use my name.' Huh? Don't use my name? Again, this happens daily. 'Roger' doesn't realize the harm he is inflicting - on himself!
How are these referrals? According to the dictionary, a referral is 'a person recommended to someone or for something.' The dictionary definition of 'recommend' is 'to praise or commend to another as being worthy or desirable; endorse.' 'Recommend; worthy; endorse.' Interesting words.
First I'd like to address the damage caused by these actions.
The referrer (and I use the term lightly) damages himself for the following reasons:
--The person he gives the referral to feels that his referrals are empty.
--The person he refers others to becomes unhappy with him.
--People talk and his behavior will be shared with others, thereby damaging his relationships with them.
The person who received the 'referral' is damaged because:
--In the first example he can't approach those referrals again. They have just experienced him in a negative way.
-- Now his pool of referral sources has gotten smaller. He knows now that he can't trust that guy to provide him with quality referrals.
--Getting a referral that says 'don't use my name' is really getting just a name. It's a cold call. He's no better off than he was before.
So let's talk about quality referrals.
The best way to get quality referrals is to be known as someone who gives them. Certain elements must exist in order for a referral to have quality.
They are:
1. You know the person you are going to refer very well.
---You are aware of their professionalism, their performance, their customer service.
---You believe in them completely.
---You would do, or have done, business with them.
2. You know the person you are referring to very well.
---You know what their needs are.
---You know how they feel about being contacted by strangers.
---You know what they look for in a vendor
3. You know the best way to conduct the referral.
---Do you make an introduction?
---Do you contact the person for them?
---Do you provide background information to your associate so they are equipped when approaching?
"Knowing the answers to these items will help you in creating a referral system that works consistently and productively," says Helbig. "Then as you work your system, you'll position yourself as a networking pro. In addition, you'll find you are referred more often because you can be trusted. Did you notice? This system treats everybody fairly and respectfully." Quite a difference from 'don't use my name!'
Diane Helbig is a Professional Coach, and President of Seize This Day Coaching. She works one-on-one and in groups with business owners, entrepreneurs, and salespeople. Visit her website at http://www.seizethisdaycoaching.com
Thursday, September 18, 2008
Lessons in Client Service
On a recent trip to Turkey, networking expert Andrea Nierenberg learned a few new lessons on selling and relationship building. Here's her story:
In the grand bazaar, there are over 4,000 shop vendors all working hard to make a day's pay by selling their merchandise. As I walked through the aisles, the 'salespeople' would walk right up to you with a big smile and say, "Let me help you spend your money".
They were both direct and friendly and they also did not take 'no' for an answer too easily. They just kept gently showing you their wares and why you 'needed' it.
I was reminded on my flight home that it is all about going back to basics as we renew and refresh our current business relationships and make new ones. Now is also a perfect time to remember that it is our 'client' and 'advocate' that help us in our everyday life and work. Whether they are external or internal as your colleagues and co-workers, take the time to reach out and show appreciation.
As Aristotle said, "we are what we repeatedly do, excellence then is not an act - instead a habit."
So as my friends in Turkey reminded me about 'client' service:
C-Communicate with confidence and find ways to connect and collaborate
L-Listen and continually develop and earn loyalty
I-Take the initiative to grow and build relationships with interest and integrity
E-Engage the other to learn, have empathy and do it all with enthusiasm
N- Nurture your relationships and it is much easier on the soul to be nice!
T-Trust happens over time and you can never say 'thank you' too many times - make sure it is always done with sincerity.
Andrea Nierenberg is the president of The Nierenberg Group, a business communications company with a total process for educating, motivating and connecting people. Learn more at www.selfmarketing.com
In the grand bazaar, there are over 4,000 shop vendors all working hard to make a day's pay by selling their merchandise. As I walked through the aisles, the 'salespeople' would walk right up to you with a big smile and say, "Let me help you spend your money".
They were both direct and friendly and they also did not take 'no' for an answer too easily. They just kept gently showing you their wares and why you 'needed' it.
I was reminded on my flight home that it is all about going back to basics as we renew and refresh our current business relationships and make new ones. Now is also a perfect time to remember that it is our 'client' and 'advocate' that help us in our everyday life and work. Whether they are external or internal as your colleagues and co-workers, take the time to reach out and show appreciation.
As Aristotle said, "we are what we repeatedly do, excellence then is not an act - instead a habit."
So as my friends in Turkey reminded me about 'client' service:
C-Communicate with confidence and find ways to connect and collaborate
L-Listen and continually develop and earn loyalty
I-Take the initiative to grow and build relationships with interest and integrity
E-Engage the other to learn, have empathy and do it all with enthusiasm
N- Nurture your relationships and it is much easier on the soul to be nice!
T-Trust happens over time and you can never say 'thank you' too many times - make sure it is always done with sincerity.
Andrea Nierenberg is the president of The Nierenberg Group, a business communications company with a total process for educating, motivating and connecting people. Learn more at www.selfmarketing.com
Friday, August 22, 2008
Get In and Get Started
The economy is lagging. Budgets are being cut. Clients are postponing decisions. We could go on and on about all the hurdles you're facing in today's selling atmosphere…but we'd rather talk about what you can do to bypass them and earn those commissions!
Here are some ideas from referral expert Joanne Black that will help you get in and get started earning more money.
Offer New Ideas
Good salespeople have always talked value. Now we need to put ourselves in our clients' shoes and become creative. We must get in and get started. Think smart, not big. It's always smarter to have a smaller piece of something than a big piece of nothing. Begin with a smaller project, a reduced order, or a regional; rather than global; implementation. Get in, and get to know the client. Let them get to know you. Get to know their business.
Create Metrics
Sit on the same side of the table as your client. Work together to determine the best way to get started. Always, always, always create metrics with your client. How do you, together, define success? Get agreement that once the current project is successful; according to the metrics you've agreed upon; the client will work with you to identify other opportunities within his or her organization. A successful project breeds a successful relationship ... and successful referrals.
Negotiate or Walk
Price. Aha! This is the big hurdle. Yes, the client will want to negotiate on price. That's her job; to build business while watching the bottom line. How many times have you submitted a proposed price to a client and had her say right off the bat, "Great! Where do I sign?" It doesn't happen. We always want to get the best deal, so why wouldn't our clients?
If you must adjust your price, adjust the scale of your project or the deliverables as well. Always get something in return for a reduced rate and write it into your agreement. Maybe the client promises to refer you to another business unit in his organization or to someone they know at a different company. Maybe you barter some of your services. Bartering is an age-old way of doing business, and it makes sense in many cases if you want what your client has and he needs what you have. Perhaps the client has software that your company needs, or a consulting methodology that could propel your business. You get the picture. Work it out.
"If you can't work things out, be willing to walk away,” says Black. “It's a tough decision, but it may be your best decision. You'll be off to the next client who values what you offer and is willing to pay for it.”
What are you waiting for? Get in and get started!
Joanne Black is America's leading authority on referral selling and the author of No More Cold Calling: The Breakthrough System That Will Leave Your Competition in the Dust, from Warner Business Books. Learn more at her website, www.nomorecoldcalling.com
Here are some ideas from referral expert Joanne Black that will help you get in and get started earning more money.
Offer New Ideas
Good salespeople have always talked value. Now we need to put ourselves in our clients' shoes and become creative. We must get in and get started. Think smart, not big. It's always smarter to have a smaller piece of something than a big piece of nothing. Begin with a smaller project, a reduced order, or a regional; rather than global; implementation. Get in, and get to know the client. Let them get to know you. Get to know their business.
Create Metrics
Sit on the same side of the table as your client. Work together to determine the best way to get started. Always, always, always create metrics with your client. How do you, together, define success? Get agreement that once the current project is successful; according to the metrics you've agreed upon; the client will work with you to identify other opportunities within his or her organization. A successful project breeds a successful relationship ... and successful referrals.
Negotiate or Walk
Price. Aha! This is the big hurdle. Yes, the client will want to negotiate on price. That's her job; to build business while watching the bottom line. How many times have you submitted a proposed price to a client and had her say right off the bat, "Great! Where do I sign?" It doesn't happen. We always want to get the best deal, so why wouldn't our clients?
If you must adjust your price, adjust the scale of your project or the deliverables as well. Always get something in return for a reduced rate and write it into your agreement. Maybe the client promises to refer you to another business unit in his organization or to someone they know at a different company. Maybe you barter some of your services. Bartering is an age-old way of doing business, and it makes sense in many cases if you want what your client has and he needs what you have. Perhaps the client has software that your company needs, or a consulting methodology that could propel your business. You get the picture. Work it out.
"If you can't work things out, be willing to walk away,” says Black. “It's a tough decision, but it may be your best decision. You'll be off to the next client who values what you offer and is willing to pay for it.”
What are you waiting for? Get in and get started!
Joanne Black is America's leading authority on referral selling and the author of No More Cold Calling: The Breakthrough System That Will Leave Your Competition in the Dust, from Warner Business Books. Learn more at her website, www.nomorecoldcalling.com
Tuesday, January 29, 2008
"Setting the Table" for Referrals
Getting referrals is one of the best (and easiest!) ways to build your business. However, many salespeople are timid about asking for referrals. Business coach Tom Kelly has the advice you need to ask for referrals in a considerate and professional manner.
"In order to effectively generate referrals for your business, you need to set the expectation up front with your clients," says Kelly. "This way, your clients know that you are looking for referrals, and you know what exactly you need to do to earn their referrals." Below is an example of how to accomplish this:
You: "Mrs. Client, may I take a moment to share with you how I build my business?"
Client: "Sure."
You: "Well, what I enjoy most about what I do and where my time is best served is working with my clients. I want to spend as much time as possible serving my clients and exceeding your expectations. In order for me to spend more time with my clients and less time marketing or prospecting for new business I really need the help of my satisfied clients."
"Please understand, I'm certainly not asking for any referrals from you now. After all, we just started working together! However, in a couple of months or even weeks, when you are clearly realizing the benefits of my services and have gotten even more value than you expected, would you be comfortable sharing the results you have experienced with others and introduce me to those people who might benefit from my services?"
Client: "Sure, I don't see why not."
You: "That sounds great. Thanks in advance for the consideration. Just so I know what it will take to make you a raving fan, what can I do to make you comfortable enough to actually want to refer business to me?"
"Having this conversation up front with your clients allows you to let your clients know that you are looking for referrals, gets their permission to do so, and also allows them to tell you exactly what you need to do to earn their referrals," says Kelly.
"By 'setting the table' up front, you remove any awkwardness around the process of referring business to you, and it allows you to feel comfortable after you exceed their expectations to ask them for referrals."
Tom Kelly is the founder and owner of Potential In Motion, Inc. As a coach, Tom is dedicated to working with salespeople, entrepreneurs and small business owners that want to reach their full potential in business and life. Visit his website at www.potentialinmotion.com
"In order to effectively generate referrals for your business, you need to set the expectation up front with your clients," says Kelly. "This way, your clients know that you are looking for referrals, and you know what exactly you need to do to earn their referrals." Below is an example of how to accomplish this:
You: "Mrs. Client, may I take a moment to share with you how I build my business?"
Client: "Sure."
You: "Well, what I enjoy most about what I do and where my time is best served is working with my clients. I want to spend as much time as possible serving my clients and exceeding your expectations. In order for me to spend more time with my clients and less time marketing or prospecting for new business I really need the help of my satisfied clients."
"Please understand, I'm certainly not asking for any referrals from you now. After all, we just started working together! However, in a couple of months or even weeks, when you are clearly realizing the benefits of my services and have gotten even more value than you expected, would you be comfortable sharing the results you have experienced with others and introduce me to those people who might benefit from my services?"
Client: "Sure, I don't see why not."
You: "That sounds great. Thanks in advance for the consideration. Just so I know what it will take to make you a raving fan, what can I do to make you comfortable enough to actually want to refer business to me?"
"Having this conversation up front with your clients allows you to let your clients know that you are looking for referrals, gets their permission to do so, and also allows them to tell you exactly what you need to do to earn their referrals," says Kelly.
"By 'setting the table' up front, you remove any awkwardness around the process of referring business to you, and it allows you to feel comfortable after you exceed their expectations to ask them for referrals."
Tom Kelly is the founder and owner of Potential In Motion, Inc. As a coach, Tom is dedicated to working with salespeople, entrepreneurs and small business owners that want to reach their full potential in business and life. Visit his website at www.potentialinmotion.com
Friday, November 16, 2007
No trust
This week we're looking at the five obstacles to any sale as outlined by legendary sales trainer Zig Ziglar: no need, no money, no hurry, no desire, no trust. Today's obstacle: "no trust."
To overcome a lack of trust, you must first realize that most prospects don't know you and may never have even heard of your company.
Here's a tip from Michael Dalton Johnson, Editor of Top Dog Sales Secrets that should help:
"All things being equal, who do you think your prospect is going to buy from: the company he has known for years, or you, the new kid on the block?" asks Johnson. "Allay his fears by providing him with current customer lists (including contact names and numbers for some of your accounts), testimonial letters on your customers' letterhead, documented case histories, and press coverage. A referral from someone he knows and respects will swing doors wide open."
There you have it: expert strategies and tactics to overcome the five basic obstacles to any sale. Now put this knowledge to use and make more sales!
To overcome a lack of trust, you must first realize that most prospects don't know you and may never have even heard of your company.
Here's a tip from Michael Dalton Johnson, Editor of Top Dog Sales Secrets that should help:
"All things being equal, who do you think your prospect is going to buy from: the company he has known for years, or you, the new kid on the block?" asks Johnson. "Allay his fears by providing him with current customer lists (including contact names and numbers for some of your accounts), testimonial letters on your customers' letterhead, documented case histories, and press coverage. A referral from someone he knows and respects will swing doors wide open."
There you have it: expert strategies and tactics to overcome the five basic obstacles to any sale. Now put this knowledge to use and make more sales!
Friday, October 26, 2007
Building Referral Business
This week we're talking about W. Edwards Deming's quote about profit in business coming from repeat customers. Today, we'll address how to get your customers to "bring their friends with them" through referrals.
Referral expert Paul McCord has some useful insights:
"Acquiring referrals from clients is not as simple as 'doing a good job' and then asking for referrals," says McCord. "Generating a large number of highly qualified referrals from a client is a process that starts from the moment the prospect is first met, not a one-time act after the sale has been completed. It requires an understanding of what a successful referral is based on, and how to exploit the referral to insure a successful contact with the referee."
Here are McCord's 4 Pillars of a Successful Referral:
Your Relationship with Your ClientYour relationship with your client must be built on trust and respect. Most clients will not give referrals to people they trust and respect unless they trust and respect you.
Your Client's Purchasing ExperienceClients assume that whomever they refer you to will be more critical and more demanding than they themselves have been. Consequently, you must provide the client the exact purchasing experience they want and demonstrate that you will not embarrass them in front of their friends, family, co-workers and acquaintances.
Your Client's Relationship with the Referred ProspectWith a referral, you are trying to build a relationship with the referred prospect based on their relationship with your client. You must know the relationship between the two. If the prospect trusts and respects your client, you begin your relationship with that prospect with some of that trust and respect imbued to you. Likewise, if the prospect distrusts and disrespects your client, you begin the relationship with some of that distrust and disrespect imbued to you. You must know where you stand with the prospect before you contact them.
The Method Used to Contact the Referred ProspectBased on the client/prospect bond, you must determine how best to contact the prospect to produce the greatest opportunity to acquire a meeting. If the client/prospect relationship is extremely strong, virtually any contact method, including a phone call from the salesperson mentioning the client's name will suffice. But, for a weak relationship, the rep must strive to use the strongest contact method possible, such as, a client letter or phone call, or a lunch meeting between the client, prospect and rep.
Author of "Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals," Paul McCord is president of McCord & Associates, a sales training and management-consulting firm.
Referral expert Paul McCord has some useful insights:
"Acquiring referrals from clients is not as simple as 'doing a good job' and then asking for referrals," says McCord. "Generating a large number of highly qualified referrals from a client is a process that starts from the moment the prospect is first met, not a one-time act after the sale has been completed. It requires an understanding of what a successful referral is based on, and how to exploit the referral to insure a successful contact with the referee."
Here are McCord's 4 Pillars of a Successful Referral:
Your Relationship with Your ClientYour relationship with your client must be built on trust and respect. Most clients will not give referrals to people they trust and respect unless they trust and respect you.
Your Client's Purchasing ExperienceClients assume that whomever they refer you to will be more critical and more demanding than they themselves have been. Consequently, you must provide the client the exact purchasing experience they want and demonstrate that you will not embarrass them in front of their friends, family, co-workers and acquaintances.
Your Client's Relationship with the Referred ProspectWith a referral, you are trying to build a relationship with the referred prospect based on their relationship with your client. You must know the relationship between the two. If the prospect trusts and respects your client, you begin your relationship with that prospect with some of that trust and respect imbued to you. Likewise, if the prospect distrusts and disrespects your client, you begin the relationship with some of that distrust and disrespect imbued to you. You must know where you stand with the prospect before you contact them.
The Method Used to Contact the Referred ProspectBased on the client/prospect bond, you must determine how best to contact the prospect to produce the greatest opportunity to acquire a meeting. If the client/prospect relationship is extremely strong, virtually any contact method, including a phone call from the salesperson mentioning the client's name will suffice. But, for a weak relationship, the rep must strive to use the strongest contact method possible, such as, a client letter or phone call, or a lunch meeting between the client, prospect and rep.
Author of "Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals," Paul McCord is president of McCord & Associates, a sales training and management-consulting firm.
Wednesday, October 24, 2007
Expand Your Business With Each Customer
Yesterday, Dr. Tony Alessandra showed us how to use a periodic client review to gauge a client's level of satisfaction. Today, he shows you several ways to expand your business through your customers.
Tony Alessandra is a contributor to Top Dog Sales Secrets. He has authored 17 books translated into 49 foreign language editions, recorded over 50 audio/video programs, and delivered over 2,000 keynote speeches since 1976.
- Referrals within their company. Whenever you talk to clients, keep one eye open for clues that indicate needs within their company, for example, a new office or branch that may need your product or service. Ask your customers for a referral, either verbally or in writing.
- Sell more of the same. While servicing an account, suggest that they buy more if you see they have the capacity to use larger volumes of your product. Under no circumstances, though, should you try to sell them more if they do not need it.
- Sell additional products or services. If you see a need, offer new products and services to your present customers. If they like your original product, they will listen to your ideas about expanding into other products.
- Upgrade your clients. If a client uses a medium-priced product, you may be able to upgrade him to a higher-priced, higher-quality product, especially if his company is growing and its needs are changing. For example, a company using a copying machine may need one with more capabilities, such as photo-reduction and collating. If you are aware of their increased needs, suggest the upgrade - before your competitor does.
Tony Alessandra is a contributor to Top Dog Sales Secrets. He has authored 17 books translated into 49 foreign language editions, recorded over 50 audio/video programs, and delivered over 2,000 keynote speeches since 1976.
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