Intentional Referrals

INTENTIONAL REFERRALS

Referrals – we love to get them, we hate to ask for them!

And yet, almost nothing can be more beneficial to the entrepreneur or small businessman. Referrals provide new business at almost no cost, and frequently provide a new customer who’s pre-sold.

This newsletter focuses on the value of referrals, and some methods for avoiding the stops we encounter around asking. Bob Burg wrote an excellent book called Endless Referrals, from which much of this material is taken. Burg’s book goes deeply into networking practice, and is a great advisor. In this news letter, we’ll focus on the specific practice of getting customers and colleagues to provide referrals for your business.

Isn’t it true that our good friends and customer's are the best informed and probably the most enthusiastic support groups we have? I’m assuming that most of us need training on seeking referrals in order to train your customers and colleagues. It’s not hard to do, they’ll love you for it, and you’ll love the results.

Small-business owners usually describe their advertis-ing as “word-of-mouth.” They occasionally get a referral from a friend or client, and occasionally turn it into business . These are wonderful moments – a client has affirmed you, and you have a new client as well.

However, “word-of-mouth advertising” is not deliberate. If a car manufacturer has too much inventory when the new models are coming out, what does he do? He reverts to advertising to stimulate sales activity – a half-a million invested in spot TV might do it nicely. Paid advertising is a resource for business – properly handled, it represents an investment that produces a return. And it can be controlled, so that you get what you want when you want it. Isn’t there an alternative process available for the solo entrepreneur or small business person?

Generating and directing referrals comes from a focused approach to networking – which Burg definesas “cultivating mutually beneficial, give-and-take, win-win relationships. The end result [is to] develop a large and diverse group of people who will gladly and continually refer a lot of business to us, while we do the same for them.”

Burg cites Girard's Law of 250. It suggests that there are about 250 people in our "sphere of influence" who would attend our wedding or our funeral. That's where we networkers start. We network with them, we send them newsletters and thank-you notes, perhaps buy them lunch. We attend networking meetings, exchange business cards, do one another favors. We invest energy and money in networking. The investment we make is hard to quantify, probably just as well, since we may have a tough time evaluating Return On Investment.

Meanwhile, we shy away from our best sources of business --our satisfied customers, the people who have had the most recent experience of our products or services. And right up with our customers are our colleagues, those we trust and who trust us.

We reason that it's inappropriate to train our customers to be powerful referrers -- we're supposed to be working for them, not the other way around. And we wouldn't want to coerce or manipulate a friend, would we?

We've forgotten Benjamin Franklin's dictum -- "If I want a friend, I let him do me a favor." In fact, your customers are not only the source of your current business - they can be a superior source of new business as well. And colleagues would be delighted to help -- if only they knew how.

When a referral says: "What can I do for you now that you've been such a help to me?" what do you do?

What would you say?

First, let's have a look at what you really want. You want an introduction to a few of the people the client knows. You're willing to follow-up, particularly if he'll pave the way for you.

Now here’s how NOT to ask for what you want.

"Do you know anyone who might benefit from my products or services ?" Actually you may have tried this already, discovered it doesn’t work, and firmly resolved never to do it again!

Here’s what happened: Your respondent concluded that “anyone” meant "everyone." He ran his mental search engine over a blur of 250 people, (Girard again!) couldn’t single out a soul, came up with zero, and promised to think about it more in the future (when he had more time.) Predictable outcome = 0

Alternative: You must provide them with a frame of reference. If client is a golfer, ask if there’s a foursome he plays with regularly. Then, ask –

a. “Does anyone in that foursome need ….?”

Not a golfer? then ask:

b. “How long have you been involved with your local Rotary club? Are there one or two people who …” You won’t say “is there anyone…” because you don’t want just anyone, you want to set a frame of reference for your friend, and, with his help, pre-qualify the referrals .

c. “How long have you been: sailing, bowling, flying, collecting stamps. Are there one or two people you know who share your hobby and might be potential referrals for me?”

Key points for generating referrals from customers.

Train customers how to network for you.
Know the difference between features and benefits in what you do.
Develop a benefit statement for the product or service you provide.
Teach people how to know if someone they are talking to is a good prospect for you.
“Frame” or isolate people in the referrer’s mind so that the referrer can "see" them. You do that by providing them a frame of reference.
Help them “see” your referrals within that frame.
Exercise: I dare you to try this three times, on clients or colleagues .

Think about one of them. How could she be a referral s ource for you?
Find out if she is willing or not. Be prepared to accept “not!” without resistance, and move on.
Help her understand what is a good referral/client for you.
Explore one or more of her personal frames of reference.
Ask her to try your referral requirements on the people in her frame(s) of reference.
Ask her for 2-3 names, and if she’s willing to speak with them before you follow up.
Expectations :

Expect to feel a little awkward on the first one.
Expect to feel more comfortable on the third.
Expect some new business from your three calls .
Will you tell me about your results? Call Craig Jennings at (516)944-6454, or email craig@craigjennings.com.





Intentional Referrals - To learn more about this author, visit Craig Jennings's Website.

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