The Fine Art of Asking for Referrals

Don't you just love it when out of the blue you get a business referral from a long-ago happy client? Who wouldn't be thrilled to have a potential chunk of business just fall in their lap? But the reality is, few people ever make the effort to proactively go out and drum up referrals by asking their customers that burning question: "Who do you know that I could help?" Attracting clients through referrals is THE MOST POWERFUL WAY you can build a business—and let's face it, it's a lot more fun than the pain of cold calling to develop leads. Client Referrals — The Easy Way to Capture Customers. In the ten years I've been in the mortgage business, I've cultivated the vast majority of my business through referrals. Instead of continually pounding the pavement looking for clients, I leverage the work of happy clients to help my business grow.  In every business, there are countless reasons to adopt a referral marketing approach. Referrals are considered the most cost effective method for "advertising" services and products. It's far less expensive in terms of time and money to target referrals than to continually prospect for new clients from scratch. And believe me, the payoff will far exceed your investment. According to world-renowned sales trainer Tom Hopkins, the closing ratio is six times greater with referrals than using other methods to generate leads. Put Your Best Clients to Work. The concept of referral marketing is pretty basic: You attract people the way people want to meet you—through a client, trusted friend or business associate. There's no direct selling involved. Instead, one of your satisfied clients "sells" the products and services for you by sharing their previous great experience.  You've heard the sales cliché that people like to do business with people they know, like and trust? When a client refers you, by association you become an extension of their trusted network. Suddenly you've joined their circle of influence and the sale almost becomes a foregone conclusion. The truth is most happy clients would be happy to give you referrals, if they only knew you were looking for them. Oddly enough, most people never assume you're looking for business unless you tell them. You've probably had the unfortunate experience of a former client or associate making a referral to a competitor. In one of those I-could-a-had-a-V-8 moments, they cover their mouth and gasp, "Oh my gosh, I didn't even think of you!" You fell off their radar, because you weren't asking for referrals. Afraid to Make the Ask? I've heard all the excuses why people won't ask for referrals. Top of the list is they feel weird asking someone they know to help them get business. The dirty little secret is that while most people are in business to sell, they HATE thinking of themselves as sales people. The problem is they're going about it the wrong way. The key to my success is that I think of asking for referrals as simply an extension of the good service that I'm providing to clients over the a long-term. Just because the deal is done doesn't mean the relationship is over—in fact, it's just the beginning.  The Art of Being Subtle. In the mortgage business, I've seen my share of people strong arming clients at closing into coughing up names of referrals. That approach only creates angry and resentful clients, which is counterproductive to any marketing effort (studies show a satisfied customer tells three friends, but an angry one gripes to 11—or thousands if they're hooked into several social media outlets.)  My approach is far more subtle and tactful, because I've never believed that the bullwhip gets you anywhere in business. Here are my surefire tips for successfully getting referrals: <ul> <li style="margin: 0.0px 0.0px 6.0px 0.0px; font: 11.0px Arial;">Target your happiest clients. Not every customer is the ideal candidate to ask. Your referral rate will be much higher when you ask those who are ecstatic with your service.</li> <li style="margin: 0.0px 0.0px 6.0px 0.0px; font: 11.0px Arial;">Consider the timing. If a client is delighted with my service, I ask for the referral at closing. For your clients that might be too soon, as they need time to experience your great service. But don't wait long; the experience should still feel fresh in their minds.</li> <li style="margin: 0.0px 0.0px 6.0px 0.0px; font: 11.0px Arial;">Ask consistently. Ask for referrals at every touch point throughout the business relationship, building referrals into your ongoing marketing programs, and making the referrals automatic.</li> <li style="margin: 0.0px 0.0px 6.0px 0.0px; font: 11.0px Arial;">Treat clients well. Your clients are a valuable asset to your business, so show them your respect. Expect a predictable percentage of client referrals, but never make assumptions or demands.</li> <li style="margin: 0.0px 0.0px 6.0px 0.0px; font: 11.0px Arial;">Always say thank you. Whether you get the business or not, acknowledge the referral immediately with a thank you note or phone call, and again when you get the business. That will ensure a steady stream of referrals over the long-term.</li> </ul> Referring the Referral Source Great referrals don't always come directly from friends and associates. Some people are in business or social networks that make them natural referral sources, so keep your eyes and ears peeled for these connectors you meet when you're out on your daily travels. Depending on your line of business, great referral sources might be bankers, executive coaches, graphic designers or even soccer moms (and dads!). In my business a great referral source would obviously be a real estate agent, but you might not think about HR directors (because they're in touch with people who are always relocating), tax professionals (they know when clients need extra cash and want to refinance), and even wedding professionals and photographers (who's looking to buy that first home more than newlyweds!) No matter what referral building approach you take, understand that unlike other channels for attracting business, including advertising, direct mail and cold calling, referral marketing is not a "campaign"—it's a way of doing business. So get out there and start leveraging the goodwill you've already developed with clients. 2009-10-23T21:24:50Z

2009-10-25T16:49:39Z

-0.690489

1045 7094

true

5897

the-fine-art-of-asking-for-referrals

2009-10-25T09:47:51Z

2009-10-25T16:49:39Z

Basic skills for the small buisnes owner

The Fine Art of Asking for Referrals

2009-10-26T01:10:24Z