According to Heinz Marketing, 84% of B2B decision makers start the buying process with a referral. We all know referrals make selling so much easier. On a referral, you start a new relationship with established trust, focusing the conversations on developing solutions for their needs. In fact, people are 4 times more likely to buy when referred by a friend. If any other sales tactic promised that kind of return, every sales person would incorporate it into their daily routine. It begs the question, why not ask for referrals more often? It is hard to get referrals, even if the client has a great experience with your organization. While 83% of consumers are willing to refer after a positive experience, only 29% actually do. Below are the steps to help increase referrals:
1. You need to build value, and that takes time. To develop a trusted relationship, you need to deliver a solid performance over time, which includes overcoming a rocky patch. Nothing is perfect, but when an issue arises, how you handle it impacts the client’s willingness to refer you to a new prospect. Clients are more likely to recommend an organization that owns and fixes their mistakes.
2. Help them see the value and define the experience. During the sales process identify what they value in a partnership, their goals, and the best way to work together. As you hit on the designated value points, make sure you highlight what they said and how you are delivering on those initiatives. It shows you listened and are actively working on behalf of their team.
3. Fulfill the client’s expectations and make sure you ask a specific question. Do not ask general questions like if they are happy and willing to recommend your product. Making them focus on a particular aspect makes it easier for them to a match a feature or component to a buyer. Direct questions like, “You said you were impressed with our speed delivering the project, who else needs a project delivered fast that you know? You seemed to have a great relationship with Jim, who else do you think would work well with Jim?”
4. Offer Incentives to the team. The Lifetime Value for new referral customer is 16% higher than non-referrals. Asking for referrals is not only a sales job; it is the organization’s job. Asking a client for a referral needs to be at the core of the organizations DNA. Promoting the referral program and implementing contests for anyone who gets a referral helps drive the action. You need to make it a habit, teach people the right time to ask and how to ask, you will reap the rewards long term.
