Sales advice, recommendations and interesting, useful and fun news from the world of selling!
Tuesday, June 16, 2009
Refine Your Referral Requests
While referrals are a great way to fill your pipeline, they can be a lot of extra, unnecessary work if they're not quality referrals. Today sales expert Kendra Lee is giving us the advice we need to ask for - and get - referrals that are a great fit. Follow her recommendations and you won't have to chase sub-par referrals any longer!
According to Lee, low-quality referrals happen when we leave up to the client who they should refer us to. "If you really want to be successful building your pipeline with referrals, you need to take a step back and think about what types of introductions you really want. Just any old referral won't get you your next hot prospect. When you leave it up to your customer to figure out who they think would be a good referral, they won't consider all the qualification points you do."
They might not recognize that they're a great client because they're:
--focused on issues that fall within your offering's sweet spot --using your solutions exactly like you want other customers to --in a specific industry or a certain size company --treating you as a trusted advisor
"Suddenly you find yourself with a referral that's less than ideal," continues Lee. "It's too small a company, has a completely different set of needs than you address, or is outside your industry expertise."
"Because the referral came from one of your top clients, you either have to figure out how to say "thanks, but no thanks" or follow-up then explain to your customer why it wasn't the best fit. It's possible you could actually waste as much time following up on this unqualified introduction as you would cold calling!"
"A poor referral from a great client puts you in an awkward position - all because you were trying to shorten your new business development cycle through referrals," says Lee. "Mediocre connections won't help you fill your pipeline. No, you only want top quality referrals. Your desire is to get introduced to companies and contacts that really need your offerings and will want to talk with you. You're looking for new connections with the characteristics of your best clients."
Don't limit yourself to asking for referrals that are similar in size, industry, or region.
"Broaden your expectations to seek introductions to people who'll implement and appreciate your offerings like your best clients do. Ask for contacts who'll want to work closely with you and welcome your expertise and recommendations."
"To get referrals that fit such specific qualifications, you need to frame who is a great connection when you ask. Tell your customer what types of companies make the best match for your offerings."
There are two parts to framing your referral request.
--Say, "someone like you who..." - and fill in the blank with the profile of your ideal referral. --Then add, "someone who needs..." - and include the classic challenges, issues or needs you address.
"What you're doing is creating a picture of your ideal referral for your client," explains Lee. "Now as they mentally search through all their colleagues, they can easily determine which ones to recommend. You've taken the guesswork out of it."
"Call me a referral snob if you will, but if we're going to ask for referrals, spend precious time following up on them, and then work them with due diligence, don't we deserve to get only the very best introductions? I sure think so!"
Kendra Lee is the author of the award-winning book "Selling Against the Goal" and president of KLA Group. Specializing in the IT industry, KLA Group works with companies to break in and exceed revenue objectives in the SMB segment. To learn more visit www.klagroup.com.
If you've been trying to get in with a new prospect with no luck, the solution to your problem could be right inside your office. Referral expert Joanne Black shares what you need to know to tap into the sales leads within your own office.
"I am always amazed when my clients discover that a person in their San Francisco office has an ideal contact for their Atlanta, Prague, or Shanghai offices," says Black. "I was conducting a call with representatives from my client's Chicago, Portland, Toronto, and Los Angeles offices. One of the salespeople in Portland described a new client he was about to win. His counterpart in Los Angeles said they were doing business with that company in Southern California. The two decided to link up and work on a strategy together."
"It's time to think beyond yourself, your sales executives, and sales support as the only members of your team," continues Black. "Think beyond your immediate team, and beyond your geographic office. Think about the obvious: Think of everyone within your company or organization as a much-needed, ready-to-be-activated resource to grow your business - exponentially."
The Secret: Look Within Salespeople within your company have huge potential to help you expand your reach. They know people in your territory - in the companies you're targeting. Everyone, regardless of his or her role in the sales organization, is part of your sales team. Your employees and co-workers can help you tap into more industry knowledge. They may have insight into an organization's culture, structure, or politics - and may be a surprisingly valuable sounding board to discuss account strategy.
Your best resource for potential new business is all around you. Everyone in your organization knows dozens and maybe even hundreds of other people. Who do you think understands the value of your organization better than the people who work there? Who could possible have more invested in your company's success? Your job will be to bring everyone into the sales process. Start by finding out who they know. To do that, you need to help everyone in your organization understand that they are part of the sales team - whether they have an official sales title or not.
Where did your fellow employees work before they came to your company? Who is their next door neighbor? What about their brother who works at your prospect company? Spend the time to talk to them, learn about their history, and what is important to them. Help everyone to understand that with every sale, your company - their company - prospers and their job becomes more secure.
With over 30 years of sales training and consulting experience, Joanne Black's philosophy is that no one should ever have to make a cold call. Some may see this as heretical thinking, but for Joanne Black - and her clients - there is an alternative. It's called referral selling. Learn more at www.nomorecoldcalling.com
The Whetstone Group run by sales trainers Jim Dunn and John Schumann has a weekly newsletter that arrives in a fun format: a sales problem, followed by a diagnosis and prescription. So, what does the doctor order for the situation in which you ask a client for a referral and they reply, "I can't think of anybody right now"? Read on for the diagnosis and prescription!
Problem: Tom heard that getting referrals was the easiest way to get new customers. So he selected 20 of his best clients and called them. He was pleased that almost all of his clients said they would be happy to help him. The problem was that he didn't actually get any introductions. What he did get was a very common response that sounded like this; "I can't think of anybody right now. I'll have to get back to you." Diagnosis: When you ask for a referral, you are asking for a response that can require a great deal of thought. You are asking someone to intellectually identify with what you do and who you do it with, then sort through their own database of people, who they know and what they do, then analyze past conversations and select a few names. This is often expected in a few seconds and can create a little psychological pressure. That is why people generally choose to ask for time to alleviate the pressure. And, of course, when the pressure is off, your request is forgotten.
Prescription: Pressure will cause people to become uncomfortable and end the dialogue. The key to avoiding this problem is to guide your client through this referral asking process in a gentle and nurturing way. Getting referrals is an emotional communication process with several questions and steps. The first step is to get your client to remind himself that your past relationship has been positive and that there is nothing that you have neglected that could be improved. Secondly, ask for their permission. This might sound like, "How would you feel about referring people to me?" Since 80% of the time you will get a positive response to this question, proceed by thanking them and explaining the reason why you are asking for their help. Remind your client of what you do and whom you do it with by restating your introductory pain probe. Gently ask who they know who may have one or more "pains".
You may even have to help by gently suggesting sources for the names you are looking for like associations, golf partners, social groups, competitor companies or suppliers. When your client gives you a name, don't forget to thank them. Ask for more information about the prospect and an introduction. Remember to respect that your client has agreed to help you and they may feel they are going out of their way. Psychologically they will need to feel good about the whole process. Referrals are the best way to get more clients when you know how to do it right.
Getting a referral from a friend is great - up until the moment they ask you not to mention their name! All of a sudden your referral is a cold call. Check out this story from business consultant Diane Helbig and remember her advice to make sure you have a good quality referral.
I have a friend - we'll call him Bill. Bill told Ralph that he was targeting CPAs. Ralph said, 'One of my clients is a CPA. Here's his contact info.' So, Bill called the CPA and left a message. A day later Ralph called Bill and asked how it went with the CPA. Bill explained that he had left a message. Then Ralph told Bill that the CPA had called him and asked him not to give his name out anymore. Yikes!
This kind of story is being played out every day all over the world. And the damage it does is deep and wide. My other friend Betty was in a leads group the other day and said she was targeting Human Resource professionals. Roger passed her a lead but had written on it 'don't use my name.' Huh? Don't use my name? Again, this happens daily. 'Roger' doesn't realize the harm he is inflicting - on himself!
How are these referrals? According to the dictionary, a referral is 'a person recommended to someone or for something.' The dictionary definition of 'recommend' is 'to praise or commend to another as being worthy or desirable; endorse.' 'Recommend; worthy; endorse.' Interesting words.
First I'd like to address the damage caused by these actions.
The referrer (and I use the term lightly) damages himself for the following reasons:
--The person he gives the referral to feels that his referrals are empty. --The person he refers others to becomes unhappy with him. --People talk and his behavior will be shared with others, thereby damaging his relationships with them.
The person who received the 'referral' is damaged because:
--In the first example he can't approach those referrals again. They have just experienced him in a negative way. -- Now his pool of referral sources has gotten smaller. He knows now that he can't trust that guy to provide him with quality referrals. --Getting a referral that says 'don't use my name' is really getting just a name. It's a cold call. He's no better off than he was before.
So let's talk about quality referrals.
The best way to get quality referrals is to be known as someone who gives them. Certain elements must exist in order for a referral to have quality.
They are: 1. You know the person you are going to refer very well. ---You are aware of their professionalism, their performance, their customer service. ---You believe in them completely. ---You would do, or have done, business with them.
2. You know the person you are referring to very well. ---You know what their needs are. ---You know how they feel about being contacted by strangers. ---You know what they look for in a vendor
3. You know the best way to conduct the referral. ---Do you make an introduction? ---Do you contact the person for them? ---Do you provide background information to your associate so they are equipped when approaching?
"Knowing the answers to these items will help you in creating a referral system that works consistently and productively," says Helbig. "Then as you work your system, you'll position yourself as a networking pro. In addition, you'll find you are referred more often because you can be trusted. Did you notice? This system treats everybody fairly and respectfully." Quite a difference from 'don't use my name!'
Diane Helbig is a Professional Coach, and President of Seize This Day Coaching. She works one-on-one and in groups with business owners, entrepreneurs, and salespeople. Visit her website at http://www.seizethisdaycoaching.com
On a recent trip to Turkey, networking expert Andrea Nierenberg learned a few new lessons on selling and relationship building. Here's her story:
In the grand bazaar, there are over 4,000 shop vendors all working hard to make a day's pay by selling their merchandise. As I walked through the aisles, the 'salespeople' would walk right up to you with a big smile and say, "Let me help you spend your money".
They were both direct and friendly and they also did not take 'no' for an answer too easily. They just kept gently showing you their wares and why you 'needed' it.
I was reminded on my flight home that it is all about going back to basics as we renew and refresh our current business relationships and make new ones. Now is also a perfect time to remember that it is our 'client' and 'advocate' that help us in our everyday life and work. Whether they are external or internal as your colleagues and co-workers, take the time to reach out and show appreciation.
As Aristotle said, "we are what we repeatedly do, excellence then is not an act - instead a habit."
So as my friends in Turkey reminded me about 'client' service:
C-Communicate with confidence and find ways to connect and collaborate
L-Listen and continually develop and earn loyalty
I-Take the initiative to grow and build relationships with interest and integrity
E-Engage the other to learn, have empathy and do it all with enthusiasm
N- Nurture your relationships and it is much easier on the soul to be nice!
T-Trust happens over time and you can never say 'thank you' too many times - make sure it is always done with sincerity.
Andrea Nierenberg is the president of The Nierenberg Group, a business communications company with a total process for educating, motivating and connecting people. Learn more at www.selfmarketing.com
The economy is lagging. Budgets are being cut. Clients are postponing decisions. We could go on and on about all the hurdles you're facing in today's selling atmosphere…but we'd rather talk about what you can do to bypass them and earn those commissions!
Here are some ideas from referral expert Joanne Black that will help you get in and get started earning more money.
Offer New Ideas Good salespeople have always talked value. Now we need to put ourselves in our clients' shoes and become creative. We must get in and get started. Think smart, not big. It's always smarter to have a smaller piece of something than a big piece of nothing. Begin with a smaller project, a reduced order, or a regional; rather than global; implementation. Get in, and get to know the client. Let them get to know you. Get to know their business.
Create Metrics Sit on the same side of the table as your client. Work together to determine the best way to get started. Always, always, always create metrics with your client. How do you, together, define success? Get agreement that once the current project is successful; according to the metrics you've agreed upon; the client will work with you to identify other opportunities within his or her organization. A successful project breeds a successful relationship ... and successful referrals.
Negotiate or Walk Price. Aha! This is the big hurdle. Yes, the client will want to negotiate on price. That's her job; to build business while watching the bottom line. How many times have you submitted a proposed price to a client and had her say right off the bat, "Great! Where do I sign?" It doesn't happen. We always want to get the best deal, so why wouldn't our clients?
If you must adjust your price, adjust the scale of your project or the deliverables as well. Always get something in return for a reduced rate and write it into your agreement. Maybe the client promises to refer you to another business unit in his organization or to someone they know at a different company. Maybe you barter some of your services. Bartering is an age-old way of doing business, and it makes sense in many cases if you want what your client has and he needs what you have. Perhaps the client has software that your company needs, or a consulting methodology that could propel your business. You get the picture. Work it out.
"If you can't work things out, be willing to walk away,” says Black. “It's a tough decision, but it may be your best decision. You'll be off to the next client who values what you offer and is willing to pay for it.”
What are you waiting for? Get in and get started!
Joanne Black is America's leading authority on referral selling and the author of No More Cold Calling: The Breakthrough System That Will Leave Your Competition in the Dust, from Warner Business Books. Learn more at her website, www.nomorecoldcalling.com
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Name: Editor: Kelly McLean
Location: Carlsbad, CA, United States
SalesDog.com, the internet's number one sales success destination for more than seven years, works with America's leading sales experts to bring practical selling tips and strategies to salespeople, sales managers, business owners and entrepreneurs. Over 30,000 sales professionals rely on its free weekly newsletter to keep them abreast of cutting-edge developments impacting their profession.
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