What to do when the referrals stop…
Let’s start with a definition… a ‘referral’ is a cold sales prospect that reaches out to you at the recommendation of or introduction from an existing client or ‘industry friendly.’
And it’s awesome. Who doesn’t love a referral? It’s a real stroke to your ego, knowing that someone is out there saying nice things about you and recommending you to others. And it could be a nice addition to the top line if that referral becomes a client. In fact, many MR firms rely on referrals as a major source of revenue.
But there’s a problem with referrals. There are never enough of them. At some point – usually sooner than later – they dry up. Or dramatically slow down. And your reliance on referrals as a “sales strategy” is now shot to hell. When that happens, what are you going to do?
The answer is a simple one… If they’re not coming to you, then you have to go to them. That is… ask for them! And there are a few proven ways to do that…
#1. Start with your ‘1st connections’ in LinkedIn. On nearly everyone’s LinkedIn profile page – just below their location – is their number of connections… and it’s usually ‘500+ connections.’ And in most cases, it’s blue – that is, a live link. Click on it to see who your connection is connected to. And when you find someone on their list that you’d like to meet, simply ask your connection for an introduction. But do this only with connections that you know really well.
#2. At the close of a successful project. Imagine that you’re having your final project meeting with a client… going over the work, the findings and your recommendations. And that the project went really well. When your client says, “Great job! This is exactly what we were looking for…,” your response should be something like, “Thanks, John, so glad you’re happy with the outcome. By the way, can you think of any other companies who might also benefit from our work?”
Alternatively, in a very large company, you might ask, “Are there any other brands here that might also benefit from our work?”
Whether internal or external, the conclusion of a successful project is the perfect time to ask.
Important: More than likely, your client will not be able to come up with a referral on the spot, but by asking the question, you have planted the seed that you are open to referrals.
#3. Other “appropriate” moments. There are other moments when it makes sense to ask for a referral…
- If there’s a really positive, special or aha moment during the project, go ahead and ask.
- If you and your client contact are having a pleasant conversation, especially someplace outside of the office, like a coffee shop. Don’t be afraid to say something like, “Bill, I’ve got a personal favor to ask…”
- When you find out that your client contact will be attending a conference, consider asking them, “Mary, as you’re meeting people at the conference next week, if someone mentions a challenge around customer insights, segmentation, or brand tracking, I’d appreciate an introduction.”
Bottom line
Referrals are a very good thing… becoming clients at a much higher conversion rate than any other lead source. But you can’t just sit around and hope they fall in your lap. Remember, “hope is not a strategy,” so take the initiative where and when appropriate to simply ask for them. You’ll be glad you did.
Good luck and good selling.