Referral Prospecting

Referrals are the best way to increase your sales.  When you begin to build your business through referrals you will lessen your dependence on cold calls and other less productive (and frustrating) prospecting activities.

However, a prerequisite for getting referrals is that you must provide outstanding service, superior products, and be professional in every way before anyone will consider providing you with referrals.  No one wants to refer a friend or business colleague to someone who may embarrass them.

Most salespeople don’t get nearly enough referrals, primarily because they don’t ask.  Here are some suggestions for improving your referral success.

Setting the stage:  Here are two approaches.

• Provide referrals yourself.  Ask your customer, “How can I help you grow your business?  Who are you looking to get connected with?  Maybe I, or someone else in my company, can help.”  Chances are good that they’ll reciprocate.
• Whenever the time is appropriate, you can ask, “How do you feel about referring me to people who might have an interest in what I do?”

Whom to ask:  Your best referral prospects are people that are pleased with your products or services, and people that have business or personal connections with the kinds of people and companies that you would like to do business with.

When to ask:  The best time to ask for referrals is when you have a really satisfied customer, especially if you have exceeded their expectations.  (Although some would say that anytime is a good time to ask for referrals.)

How to ask for a referral:

• Don’t begin your question with “Do you know anybody…………..?”  The typical answer is, “No, but I’ll let you know if I think of someone.”
• Instead, begin your question with “Whom do you know that…?”  This focuses them on a person or company, instead of a simple “yes” or “no” answer.

Referral Rules

• You won’t be referred unless you are exceeding their expectations.
• The more referrals you give, the more you will get.
•  If you don’t ask for referrals, you usually don’t get them.
• Never put any pressure on people to give you referrals.
• Don’t let them guess whom you’d like to do business with.
• Anytime you get a referral you must tell them how you will handle the referral.  They don’t want any unpleasant surprises.

Self-Study Assignment:  Who are your top five referral sources?  When was the last time you asked someone for a referral?  Make a commitment to identifying people who could be good referral sources for you and contact them in the next 30 days.