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References: The Most Underutilized
Strategic Advantage
Salespeople are always looking for a way to differentiate themselves
to win an account. Yet few use one of the most powerful tools in their
bag -- the right reference. Lee Salz will show you how.
See if this sounds familiar. You have been chasing this account for
six months. You feel optimistic as the buying process is coming to
a conclusion. The sale is between you and two other firms. The competition
is fierce, but you feel you are ahead. At 11 A.M., the Procurement
Agent asks for three references to be provided by the end of the day.
In a panic, you send a company-wide email in search of these clients.
At 4:58 P.M., you've got all three and quickly send them to the Procurement
Agent. Whew! Mission accomplished! They wanted three references and
you got it done - of course, so did your competitors.
This scenario plays out every day. It doesn't
matter whether the company is big or small, or what industry they're
in; the request for references is a standard part of the buying process.
Surprisingly, few salespeople use this reference stage to their strategic
advantage. They simply respond quickly with the requested information.
In the mind of the salesperson, the speed of the response communicates
their performance as a supplier. While somewhat true, the prospect's
discussions with the references will carry far more weight in the
selection process than the speed with which the salesperson furnishes
a reference.
Why do prospects ask for references? When I talk to salespeople, I
usually hear that references are just a standard part of due diligence.
Some use the term “rubber stamp.” However, when I talk to
buyers, I hear a very different message. Many buyers look at references
as their opportunity to validate the message they have been hearing
from the potential supplier. In essence, prospects are trying to determine
whether a supplier can deliver on their promises. Can the supplier
really handle this size account? Are they really that fast? Or, that
accurate? Is the service as good as they described?
If a new supplier does not perform to the expectations that have been
represented, there is risk for the buyer who selected them. Heads
will roll! Sometimes, prospects ask the same questions of the reference
that they asked of the salesperson to see if there is a difference
in response. Other times, they ask specific questions relative to
their needs that may not have been shared with the salesperson. For
the prospect, this is their most critical evaluation step.
It is the little things that winning salespeople do that makes them
winners. If all of the competing salespeople provide “good”
references, how can you provide the “best” references? First,
realize that the “best” references will be different for
each prospect.
What do they want to know?
Start by talking with the Procurement Agent. For example, say, “I
received your request for references and I'm happy to provide them.
So that I can provide you with the references that best support your
initiative, what are you hoping to learn from our clients?” If
you can gather that information from the Procurement Agent, you have
the roadmap to identifying the best references. Even if he can't,
or won't, provide you with this information, you have at least shown
that you care. This effort alone can be the differentiator that pushes
you across the finish line. All is not lost if you can't get the information.
Match them up
Now, think about the account and what is important to them. Reflect
on what was learned during the needs analysis discussions. If they
were concerned about implementation, provide a reference in an account
that your company recently implemented. Perhaps, the decision is being
made by a CFO, then provide a reference of a CFO that can speak to
your performance. For the third reference, provide a client that is
purchasing the same amount of the same product. From the prospect's
perspective, how great is the opportunity to speak to three clients
who can relate to his needs? He will be able to gather the information
he desires from someone with whom he shares something in common. He
will feel confident in his ability to perform due diligence on you,
the potential supplier. He will be able to make an informed decision.
Tell them the story
Rather than simply sending the contact names and phone numbers to
the Procurement Agent, instead provide a brief narrative of how each
client serves as a reference. How many salespeople are doing that?
Sound the alarm
Finally, contact each of the three references to alert them that a
call is coming their way to discuss your performance as a supplier.
Tell them that the prospect is calling to discuss particular areas
of the business. Thus, when the prospect calls the reference, the
reference is expecting the call and is prepared for the conversation.
What a great experience for your prospect and your client. Keep in
mind, one easy way to burn a relationship with a happy client is to
surprise them with a reference phone call. No one likes to be blind-sided
or unprepared. I've seen more than a few opportunities lost where
the prospect cited the reference experience as the deciding factor.
An unprepared reference reflects negatively on the supplier.
In a competitive marketplace, every opportunity that you have to demonstrate
value to a prospect is critical. Leveraging the reference step of
the process can give you just that little edge that pushes you over
the top.
Lee B. Salz is President of Sales Dodo, LLC and author of Soar
Despite Your Dodo Sales Manager. He specializes in helping companies
and their sales organizations adapt and thrive in the ever-changing
world of business. Lee is available for keynote speaking, business
consulting, and sales training. He can be reached via email at LSalz@SalesDodo.com,
his website at www.SalesDodo.com
or by phone at 763.416.4321.
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