Receiving a personal, qualified referral, not just an asked for lead, is the single most powerful tool that you can find yourself with. How do you get such a referral?
“A single conversation across the table with a wise man is worth a month’s study of books” Chinese Proverb
How did you get your last major sale?
Why not go out on a limb, isn’t that where the fruit is?
According to Harvey Mackay, author of "Dig your well before you are thirsty", there are 4 types of people in your business environment:
The prospect/suspect is the universe of people that may or may not be interested in your product. They do not know you from Adam. All they see is a salesman that is trying to get them to buy something “that they probably don"t want, don"t need and cannot afford” (Regardless of whether that is true or not, that is a prospect"s native attitude)
Jumping the gun and asking for a referral at this point is rude, unprofessional and unwarranted. A referral from them is usually almost useless.
When you are in a sales situation, a new person that you meet starts out as a # 4 (Prospect/Suspect).
“People do not care what you know until they know that you care”.
Your first job is to turn a # 4 into a # 3. Show them why they need to buy your product. Remember - “If you can not say what you mean, you do not mean what you say”
Once they have bought the product, they have jumped to a # 3 (Customer).
A Customer (# 3) now has an incentive to refer you to someone. They want to feel comfortable with their purchase, therefore they feel like their business associate should try the product too. A referral from a # 3 is an adequate referral.
However, a typical business hears from only 4 percent of it"s dissatisfied customers. That means that over 96 percent of your customers are just going to smile, tell their friends (8-10 of them) about the mediocre product… Usually, salespeople stop after the sale. That is a major error. The sale does not end after the customer signs their name… it BEGINS when they sign their name. Over time, if they feel happy about the product you have sold them, then they may become a Client ( # 2)
A Client (# 2) will definitely refer a lot of prospects to you. They are happy with your product, they like you as a sales person and are comfortable with referring most of their customers to you.
Most of the good salespeople stop here in their business relationships. A caveat is in order here.
“When a referral seems “to fall in your lap” you want to close the sale.. Don't"
Make sure that you keep a client"s and their referral"s trust in your best interest, not being interested in the commission on that first or second sale but keeping the long picture in view. If you do that, you may just enter Nirvana and convert your client into a Advocate (# 1)!
An Advocate (# 1) will not only refer you to his best customers, but since they want you to succeed, they will do everything possible to help and may just introduce you to their “Advocates”… talk about power.
Keeping honesty, sincerity and integrity in mind at all stages of the sales ladder will result in unlimited referrals, … if you give the seeds a chance to grow a tree and bear fruit.
Reference list and recommended reading:
1. "Getting Business To Come To You" by Paul and Sarah Edwards
2. "Power Shmoozing” by Terri Mandell
3. "Thoughts on The Business of Life” compilation by Forbes Magazine
4. "How To Get Clients" by Jeff Slutsky
5. "The Sales Habits of Highly Successful Salespeople" by Stephan Schiffman
6. "How to Sell Yourself " by Joe Girard
Learn more about the author, Geno Iorio.
Hello Geno, I read your post and I wanted to add to your list of reference books for anyone who might be out there that can benefit from them.
Here goes ...;
Good luck
Mike Carpenter
Mike the Money Man
www.mikethemoneyman.com
(206) 465-5528 - Cell
HELl-O GEN-O!
I enjoyed reading your article as it hit on the right things.
One thing I would add to "prime the pumP with your clients, referrals and prospects, is to maintain contact with them. Reltionships are built with regular contact, wihich builds trust, which generates long-term business. Give your clients a reason to love you, outside of the product.
Another book I would recommend is "Referral of a Lifteime" by Tim Templeton. This adds to your 4 groups, in the fact that it diescribes how to motivate your advocates into more quialified referrals.
Good reading!
Loren Jennings SendOutCards
Great and useful article. I liked the breakdown between the four types of clients/customers...that we might have.
Thanks for the resources too. I love when we can share useful tools with one another.
I'd like to add one of my own, "Hug Your Customer" by Jack Mitchell. It doesn't speak to getting referrals, but it does talk about how taking care of your customers and really knowing them can turn them into advocates.
Thanks again! Jen
Hi Geno -
Thanks for the article. I appreciated that you defined the types of individuals one meets in business, as well as your emphasis on being both authentic and clear about who and what you are.
A book that I recommend frequently in regards to authentic marketing is Seth Godin's "All Marketers Are Liars: The Power of Telling Authentic Stories in a Low Trust World".
Linda Watson Business Ingenuity Group" BIG identities for small business -- Linda
Linda, Jen, Loren and Mike:
Thanks for all your great feedback (and your additional book recommendations)!
Of course, if we list all the great business books we have read.. then we would spend all our time reading about networking and not actually DO any networking and relationship building. :)
Geno Iorio 336-549-2993 www.capitalprofitsolutions.com
Geno, Thak you for your insight. It's good to know that I had been working my sphere of influence in the way you describe, except I now see the order that one should work in relation to prospects, customers, clients and advocates. Gracias
Geno, great article. I am always combing the web for articles that will interest my clients, past and present. It is a great wey to help them and keep on their radar.
Best, Rich Berman
Thanks Geno
This was very useful as it quickly points out common mistakes by the novice as well as advanced salespeople
See you in the Stars
Nikki and Nike
Hi Geno! Very good article. I have seen other material on customer loyalty with various categories such as: suspect, prospect, first-time customer, repeat customer, client, advocate, ally, and zealot. You do a nice job of defining this into four categories and it is very readable.
It is really great when we can become referral advocates (and even zealots) to help each other in business. See you Monday in referral group!
All the best, Coach Mack
Great post. One problem I run into is that I have client that ask for everything and want to pay nothing at this point I have to say NO. In some cases if you are give them a free something they pay you back in spade but in others you just get Nothing and give everything.
Bookmark article
Follow article
Email to a friend
Share article
