Strategic Direction Blog

The best time to ask a customer for a “referral” is shortly after the purchase or installation. Why? According to our recent survey, this is typically when product satisfaction is at its highest. Make sure if you do get a referral you ask the customer for a warm hand-off. Ask them to make a phone call for you in order to set the stage for your presentation however if that’s not possible a well written email will suffice. If your customer can’t think of a referral at that moment in time, don’t give up. Keep pressing - sooner or later you’ll get a name.

Remember though, not all customers will provide good referrals - try to avoid:

1. Customers who have been difficult through the sales and negotiating process. Remember, like attracts like.

2. Customers who received a deeper than normal discount or special pricing.

3. Customers who have less than a stellar reputation in the professional community.

And if you get a good referral from a customer, thank them by doing something nice for them then ask for another name!

By the way - every company should have a formal referral program in place. Be creative and make it part of your culture.

Top Sales Professionals never rely on marketing for lead generation. Over the years I have seen and done some creative things to generate quality leads including sending out “birth announcements” to local prospects announcing the launch (birth) of a new product. This not only got a chuckle or two but it moved clients to pick up the phone and call. The best leads (and by best I mean most qualified) come from existing clients/customers. There are some great advantages to referral selling:

1. The leads are/should be pre-qualified

2. Pricing is known and fixed

3. Potentially shorter sales cycle

4. If a demonstration is typical this may get you around it citing the customer as proof of the product’s performance.

The key to successful selling using referrals comes from proper planning..

Coming Soon - Part 2