Referrals, Part  1 of 2

The number one request I get from businesses, across the board, is how to get more referrals. And not just more referrals, but better quality referrals. Ironically, most businesses are not set up to receive any referrals! For example, I had a conversation recently with a high ranking officer in one of the largest banks in the country. I asked him what a good referral would be. After 1 minute and 14 seconds (yes, I timed it) of rambling on, he finally figured it would be someone one who was paying too much for a loan, or not getting enough return on their savings. So, not only was this officer not able to identify a good referral on the spot, he figured that if he did bring in new business, it would be based on price!

So let's tackle the first 3 of the six basic steps of Referrals. We can address the difference between selling on price and creating value another day :-)

First, come up with a list of the qualities of the ideal referral. It's got to be more than just a list of names and numbers. What would your best, most ideal client look like? This is your ideal referral! Make this list specific and constantly be on the lookout for it. Let everyone know it. Be able to blurt out your ideal referral in a matter of seconds, on the spot. If you can't do this, you are not ready for referrals. If you are a manager or owner, casually stop a salesperson in the hall one day and ask what their ideal referral is. Now, no matter what they answer, just thank them for their time and move on. Go back to your office and, if the answer was immediate, specific and on point, go about your day. If it sounded more like the conversation I had with the bank officer, immediately schedule some time in your schedule for training on referrals!

Second, set a goal for referrals. "More referrals this year" is a wish, not a goal. Be specific and make it measurable. Asking for 2 new referrals per month is a specific and measurable goal. Asking all of my current clients who have been with me more than one year, for at least 2 referrals by the end of 2015 is a specific and measurable goal. Use these or come up with your own. Remember, if you don't have a goal to get more referrals, than you don't have a plan to get more referrals...and if you don't have a plan to get more referrals, then you don't plan to get more referrals!

Third, review your referral sources. Current clients are the best source of referrals, but certainly not the only ones. If I had my choice, I would pick a "social butterflie" who loves me and my company over any other source of referrals. Why? Because social Butterflies (you know, those people who know everyone in town and constantly stays in contact with them) can get the word out about you faster and to a greater range of people, than anyone else you know.

That's enough for now. Work on those first three steps and we'll cover the last three next week. By the way, once you bring in a referral, you'll need a specific and proven process to convert your referral into business. Click here to a free Sales Process Grader to see how your system measures up.