A referral is an introduction to a potential prospect who is made by someone the prospect knows and respects. It is important to recognize that all referrals are not created equal. Here are several categories of referrals, ranging from most effective to least effective:
Live, In-Person Introduction: This is when your contact walks you over to a potential prospect and makes a live, in-person introduction. In an ideal circumstance, the introduction includes a glowing testimonial about you, your offering, and/or your company.
Live Telephone Introduction: If time or circumstances do not permit a live, in-person introduction (for example, your contact and the prospect work in different facilities), the next best option is a live telephone introduction. This might take the form of a conference call or a call from a speakerphone in your contact’s office. Your contact may participate in the entire conversation with the prospect, or they may drop off the call after making the introductions.
Electronic Introduction: If you cannot arrange for a live in-person or telephone introduction, the next best option is for your contact to speak with, leave a voice mail for, or send an e-mail to the prospect prior to you contacting them. When you make your introductory call, be sure to mention that “(Name) recently contacted you to introduce me and explain why they think it is a good idea for us to get together.”
Authorized Name Dropping: The lowest level of referral is when your contact gives you a prospect’s name and phone number and permission to mention their name when you call the prospect. This is “warmer” than a cold call, but it is not as effective as other types of referrals.
How do you earn referrals? The absolute best way is by providing great service to your customers. It is also helpful if you set an expectation that referrals are your preferred reward for providing exceptional service.
When should you ask for referrals? Every time there is an opportunity to do so! When you do a favor for a customer, ask for referrals. When a customer places an order, ask for referrals. If a customer comments that they are happy with something that you or your company did, ask for referrals. When you help a customer solve a problem, ask for referrals.
Customers are not the only source for referrals. Anyone you interact with while conducting Prospecting Plan activities is a potential source of referrals. If you feel you have built credibility with someone, or they seem interested in what you do, do not hesitate to ask them for referrals.