Business Development: Referrals, An Untapped Asset

Consider this. Individuals who have made buying decisions have a natural tendency to conclude that they've made a wise choice.

Existing 'satisfied' customers potentially represent a huge untapped asset for sales people.    Think about it. It is rare to get a negative response when you ask people how they like their expensive new car... even if they are less than thrilled with it.
The point being, even unhappy customers want to validate their choices. This can be further validated if others make the same buying decision. Happy, satisfied customers will often 'brag' about their selection and, as a result, are more than willing to help a sales person succeed by finding new accounts.

Unfortunately, most sales people fail to reap the benefits of referrals from their clients. There are (4) common reasons why:

1. Sales people fail to ask for referrals.
2. When they do obtain a referral, salespeople fail to ask for a 'warm' referral, meaning they don't ask their customer to make a telephone call or send e-mail of introduction.
3. They don't attempt to discover from their customer what specific business goal or problem the 'referral' may be facing.
4. When calling prospects they have been referred to, sales people fail to go much beyond saying: "Joe Smith suggested I contact you."

So here are the tips:

1. ASK for referrals!
2. ASK your customer to make a telephone call or send an e-mail of introduction to the referral on your behalf.
3. ASK your customer if they are aware of any potential goals, problems or needs the prospect may have.  This will allow you to prepare for the call.
4. And finally, with a referral, as with all prospects, you objective is to have the prospect share a goal, problem or issue so that you can begin selling. One of the best ways to do this is to share the Success Story of the customer that referred you.

One of the easiest circumstances in which to make the connection is when the titles of both your customer and the referral are the same.  When they are not, be sure you are attempting to relate business issues that the prospect is facing; alignment.  Go into your call with a plan, including a menu of potential goals for the person you are call on.

2 Responses to "Business Development: Referrals, An Untapped Asset"

1. Tom McDonnell Says:
   September 25th, 2007 at 10:47 am

   I agree 100% with the above. I would like to ask you your opinion of doing the above, and, adding an "incentive" to whom you seek the referral.

   Does offering, for example, a $10 Starbucks Card in return for their referral or, something more if say the referral ends up begin a new customer for you tarnish this is anyway ? I would love your opinion on that.

   Regards,
   Tom
   610-862-6356

2. Gary Walker Says:
   September 25th, 2007 at 2:59 pm

   Tom, I see nothing wrong with thanking or acknowleding the person or organization who provided you with a lead. Whether it is a personal gift like a Starbucks gift card, or some type of 'orgaganizational' acknowlegment, I think it is the professional and considerate thing to do.