Referrals: Getting the most from the â€˜low-hanging fruitâ€™ of salesJim Crossreferrals, leads, sales, client relations, customer service
Everyone talks about referrals, but few actually pursue them.
Referrals should be considered the reward for a job well done. They
are the byproduct of your excellent customer service. As a true
sales professional, you have earned the right to ask for and
receive referrals. If you are not asking for referrals, you are
only cheating yourself. Earning referral business is a fantastic
way to grow your business, and the best part is that all of the
calls are warm leads.
There are two main types of referrals: Client-to-client leads
and client-to-co-worker leads (in-house hand-off).
Both of these types of leads offer a plethora of untapped sales
opportunities. The hardest part is actually asking for the
referral. Sometimes it may seem pushy, or we may be fearful that we
havent earned the right to ask for referrals.
The referral concept is one of those areas where you must have a
game plan and well thought-out strategy. Think about what you are
doing: You are asking someone to put their neck on the line and
jeopardize their reputation by recommending you to another client
or co-worker. The concept of "ready, aim, fire" should not be used.
You get one or maybe two chances to do this the right way, so be
prepared. Most importantly, be professional. If at all possible,
its best to approach this topic after your client has successfully
implemented your product or service. Keep in mind that your client
is busy, so pursue referrals after the close of their quarter,
project, or general busy time. View the referral concept as you
would any other sales pitch. You are pitching the client on giving
you a referral. With this being said, you dont say, "Hey, can you
give me some referrals?" You need to show why youve earned the
right to a referral. You need to present the hard work and
excellent customer service you have given the client. He should
want to refer you to others.
The overall idea is to have a review session with your client to
assess his needs, if any, and then transition into your needs
(referrals). Start first by asking the customer for a lunch meeting
or perhaps a conference call to review their account and get an
overall status check. During this time, you need to present the
client with something tangible, such as customer service reports,
product breakdowns, returns, or project deadlines. You need
something to get the client thinking, "Yes, I have been very
If you cannot present a favorable overview, then you most likely
haven't earned the right to ask for referrals. Make sure your
client is satisfied and happy with your service. Your presentation
should be structured and professional. During your presentation,
communicate three things to the customer:
1. You and the client agreed upon X.
2. You delivered X.
3. The client is happy with X.
Here is a sample dialogue:
Sales representative: "Mrs. Customer, I wanted to take this
opportunity to thank you for your business and get a feel for how
things have been going over the past few months. I've prepared a
detailed report outlining our most recent project and high points
within the project. As we discussed, you wanted XYZ implementation
to be up and running by XYZ date. As you can see, we came in ahead
of schedule and under budget. Also, you said it was imperative
there were no glitches, and everything seems to be running
smoothly, and the project was delivered without problems. With this
being said, how would you rate your overall satisfaction with our
most recent project?"
Client: "We are extremely happy with the implementation and look
forward to working with you in the future."
Sales representative: "I echo your sentiments. I do my best
to deliver on expectations and provide excellent customer service.
Based on my proven track record, do you feel I've earned the right
to ask you for some referrals?"
You're not doing this for the practice! You're here to make
money! If you've held up your end of the bargain, don't be afraid
to ask for a bigger piece of the pie. You said you were going to do
X, you did X and the customer is happy. Your clients understand
that asking for referrals is part of the process.
The two types of referrals
The client-to-client referral allows you the leeway to take care of
the personal interest of your existing customer. A client-to-client
referral is typically a referral to someone outside your customer's
companyperhaps an associate in the same field but employed at a
different company. It is okay to offer up some sort of reward for a
lucrative referral. I've seen some sales representatives who have a
monetary amount they simply pay to the client for referring new
customers. Conversely, you often can simply get the referral
because your existing customer respects you and doesn't expect
anything in return. Upon making your introduction to the new
client, you have to immediately let them know you have a successful
relationship with the mutual contact, and that based on your past
success, the contact suggested you give them a call. It has to be
clear that you are calling to earn business based on your previous
achievements with the mutual contact. You are calling with the
purpose of getting in the loop and earning business. They will
thank you for not wasting their time with a bunch of meaningless
Don't show up expecting to have business handed to you.
Remember, your old client's reputation is on the line. You not only
have to impress the new client, you have to make your old client
proud and confident in their decision to give you the referral. Be
eager and confident. Be humble and honored to have the opportunity
to earn the new client's business. Be knowledgeable of his industry
and business model. Most importantly, be professional and
Don't talk about details regarding your other client, except the
professional relationship you have. Breaking the ice doesn't mean
you have to be anything other than professional. Once you have
established some rapport with the new client, it is up to you to
keep the relationship alive and thriving. A referral simply allows
you an opportunity to get your foot in the door, and the rest is up
to you. You cant expect someone to buy from you simply because he
met with you. You have to show credibility and earn his trust, just
like with any new account.
This isn't too different than the client-to-client referral, but it
requires a little more hand holding. You cannot offer up a bonus
incentive because it could be a conflict of interest. Your goal is
to have your client champion you into other departments of his
company based on the added value you bring to the table. Remember,
if you have been holding up your end of the bargain, your client
should want to have you working with the other departments and
Use the same concept as we outlined before: "Based on this
proven track record, do you feel okay with me offering my services
to other areas of your company?"
Lunch meetings or joint conference calls are a great way to do
introductions. Approach these referrals the same way you would
approach the client-to-client referral. Make sure you are on your
game and prepared to put your best foot forward.
Referrals don't always have to be sales related. The concept is
simply you proving yourself and earning the right to ask for
something in return. You can prove yourself without the customer
even making a purchase. If you have bent over backwards to get them
information and product demos, you have still accomplished the
three criteria: you agreed on X, you delivered X and the client was
happy with X. Even if they havent purchased anything from you, you
have still executed and met expectations. This can apply to
anything. It shows you are dependable.
Also, referrals don't have to be to a new contact. You can use
the referral concept to expand your offerings within the same
contact. If you have accomplished the three criteria, then you have
earned the right to ask for other business from the same contact.
This is your own way of referring yourself to net new business with
existing contacts. If you haven't given them a reason to doubt you,
then why wouldn't they give you a shot at more of their
Referrals should be viewed as the low-hanging fruit when it
comes to increasing your business. You completely take cold calls
out of the equation and basically have the best introduction to a
new opportunity. You're having someone refer you into new business
based on his past satisfaction levels.
Lastly, always remember to thank your client for any successful
referrals. It is just common courtesy to thank someone for a
referral, regardless of the outcome. You will lose credibility very
quickly if you forget to thank your existing clients for their
Jim Cross, founder of The Cross Corporation, and
has more than 15 years of experience in sales and executive
management. He may be reached at (847) 529-3724 or e-mail [email protected]