2011 THE YEAR OF THE REFERRAL
It is a well known truism that the best customer is a happy customer. It follows that the best leads are referrals from happy customers. Referral leads are almost always the best prospects because a recommendation from one customer to another provides credibility, a positive impression and reduces doubt in the prospect's mind. And a bonus for you is that is an incredibly cost-effective means of generating new business!
Some common misconceptions about referrals that I've heard from my clients.
Customers don't want to give referrals.
You can't plan or influence referral business - it just happens on its own.
Advertising and sales requires too much of our attention; there aren't enough resources for a referral process.
The truth is that customers do want to give you referrals. They like to see themselves as an authority, a helper or someone "in the know." And you can plan and influence the amount of referrals in much the same way you do traditional leads. Once you realize the value of referrals, you won't want to take a passive approach.
A marketing plan that includes media, referrals and networking has proven to be a successful plan for many businesses.
From my Point of View, generating a referral is a High Pay-off activity that occurs at the end of your Lead Conversion process. And, since referral leads are typically highly-qualified leads, the process will be simpler and probably more cost-effective than your traditional Lead Generation methods.
DON'T BE SHY
You'll never get referrals unless you ask. Yes, it can be that simple. In fact, asking for referrals can be a natural part of the sales process.
My first mentor Paul J. Meyer says "I would rather be a master prospector than a wizard of speech and have no one to talk to." Meyer developed a habit of asking for a minimum of 10 referrals from each new client. He also had one of the most organized prospecting system that I still use to this day.
By asking your customer for a referral, you are not asking them to take a risk. Instead you are asking them for a factual observation. You're not asking them to qualify or pre-sell the referral; you're simply asking them if they know someone who could benefit like they have.
SHARE YOUR STORY
How have you implemented a referral system into your Lead Conversion process? What worked, what didn't? Post a comment and tell us about it.
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