How To Get Referrals

The average small business loses over 20 percent of it’s customers on a yearly basis because of errors, changes in customers’ buying influence or personnel, customers moving or going out of business, customers being  acquired and local purchasing eliminated, and many other reasons. Getting prospects and new accounts is vital for your paycheck and your business for survival and growth. Many of the sales people and businesses spend thousands of hours every year cold calling and marketing on possible new prospects to get their business.

An often missed asset is the readily available pot of referrals from existing clients that love your product or service. There are countless opportunities to ask for a referral, and those opportunities need recognition. Pay attention to the following circumstances and people below, apply them to your own experiences and dig out those referrals that could be right under your nose:

Becoming an expert: Sales referrals are not your usual prospects, they require a transformation of speech. Which means you are no longer a solicitor, but a direct solution to one of their problems according to the person who referred you to them. It’s incredible how a friend’s word affects your prospect’s listening, then again, this isn’t a new marketing technique. Using the friendly referral to your advantage by becoming the number one source for problem solutions is the key to getting alot of them, therefore making your sales pitch shorter and more effective.

Existing customers: Yes, you have a huge pool of untouched referrals from your active customers. Even if you only have a few customers, they are probably happy with what you are selling or offering, and those make the best advertising campaigns. Every single meeting you hold with those existing customers should include some time to talk about possible referrals and cross-selling between your companies (if B2b). A simple way of getting more referrals is to compensate your current clients with discounts or some cash. Offering a reward for referring new customers will make them even happier!

New customers: A happy new customer was just acquired, they love your product, service, and delivery times. They now have a story to tell about how they were made so happy, so take advantage of it! Show them how dependent you are on their referrals and ask for one! You need to inform your client that your success depends on referrals and the quality of the product you deliver as well. You can say something like “Do you know XYZ company?” Have a list of a few local companies you want to target and ask your new client if they know anyone inside the organization you could get in contact with. Always get authorization to use your client’s name, otherwise you risk losing two new clients and your reputation.

Possible clients: Sometimes we manage to create a good relationship with a prospect that will most likely never buy anything and those are sometimes very effective sources of referrals. The key here is to have a relationship, show them how dedicated you are at serving that market and maybe they’ll help you get into another business. It works both ways, because once they refer you to that other business, they might realize they need your services as well. The point here is to always be closing and asking anyone for referrals.

Employees: The average person knows around 20o people, and most employees know your company and what it does. And who wouldn’t want a nice little bonus for the holidays? Tapping into a 10 employee circle of influence yields approximately 2,000 possible referrals and assuming we close %.5 of those 2,000 people, we are talking about 10 new customers you didn’t’ have before. They key here is to offer employees some incentives, whatever they may be, it needs to inspire action and excitement.

Suppliers: If you buy something from another company, you have a supplier. They, as well as yourself, are interested in acquiring new contacts and making more sales. Therefore it’s a win win situation for the both of you. Because suppliers usually sell raw materials to alot of different companies, they are a fantastic source of referrals. Use them wisely and remember to never stop asking for referrals.

Deliveries: Every single business in the world uses these services, from UPS to FedEx, they all serve your possible customers. Although you can’t ask them to refer you to their clients, you can simply ask the delivery personnel questions about their other accounts. The key here is also the relationship you have with your “regular guy”, start talking to them on a daily basis, ask when their birthday is, create a friendship and win them over.

New hires: Whenever there are new people coming into the organization, as a business owner, you can take advantage of this new circle of influence by asking them to practice on existing clients or customers. Take into consideration the market and how related it is to their new job. It doesn’t matter if it’s a new secretary, ask her to think of people in her life that might use your service and offer her an incentive for every new sale made! It’s essential to remember that every employee is a sales person in your organization.

Networking: Events that bring businesses together are an incredible well of referrals, simply because everyone is there to talk about business and how they can help each other. The key here is to give first, add value to other people networking and they will most likely return the value ten fold. Conversation and sharing is what makes these events so effective, if there aren’t any networking events around, start them! Use craigslist to reach out to businesses and get your name out there!

In conclusion, referrals come along with value. If your product or service ads value to people, referrals are readily available. You just have to ask for them!