Referrals are the lifeblood of a sales business. They help bridge the trust gap between you and the referred prospect.
According to Nielsen, people are four times more likely to buy when referred by a friend. Ninety-two percent of people trust referrals from people they know. A referred prospect already has confidence in you and your company. Also, a referred prospect will generally move through sales process at a faster rate than cold suspects.
An important element of getting a referral is the strength of the relationship between you and the one giving it. If you have a strong relationship with an existing customer and they trust you, they will enthusiastically refer you.
How do you know how strong your relationship is? Evaluate your current customers by assessing your relationship using the following criteria:
- Length of the relationship
- Frequency of communication between you and the client
- Speed of client’s response to your communications
- Overall satisfaction with your service
Customers with high relationship scores are great candidates to ask for referrals.
Here are some suggestions to help you ask for a referral:
- Timing. The best time to ask is after the client has bought. You can say something like: “Mr. Client, I lost something today. What did I lose? My best prospect: YOU! As of today, you are my client, and if I lose all my good prospects, I’ll soon be out of business. I am requesting just ONE referral.
- Ask for help. People want to be helpful if they are able. State: “I’m asking for your help in finding ONE new prospect. My goal is to make you proud to refer your friends and family to me.”
- Make it easy. Avoid using the generic, “Do you know anyone else who could use my services?” This makes it easy to say, "No." Be specific with your request. Adding, “Can you think of one friend or family member right now who may need real estate assistance?” makes it easier for the customer to help you.
- Link the referral. Ask permission to use the customer’s name. “Jim said I should call you…” Or, "Susan uses my services and thought you might be interested in hearing about how I’ve helped her…” Better yet, if your relationship score is extremely high, ask the customer to make the initial introduction.
- Say thank you. Thank the customer for giving you the referral and keep them updated on your progress. Send a thank-you note or gift card. Nurture your best referral givers. If someone is sending you business, reciprocate.
One note of caution: you will often get an appointment with the referred person because of their relationship with the referrer, but that doesn’t mean they have any intention of buying. So, you must still carefully qualify these opportunities.
