6 Tips to Increase the Quality, Quantity of Your Client Referrals

 

As a professional, you can ease the pain and save time in making sales calls, if you’re a good steward of your already-existing circle of associates and clients – potential centers of influence. That’s a term that refers to people who can and will refer business your way.

There are two types of centers of influence: 1. People who know you well and will refer business to you without being asked. 2. Those acquaintances who need some prodding.

For the former, be grateful and show a gracious gratitude. Don’t take such leads for granted.

Be grateful for the latter, too, and get more quality referrals if you use the following tips:

1. Make sure you’re prepared for referrals. That means being up-to-date branding on all your collateral – from your Web site to business cards. Rehearse your elevator pitch and value proposition, and  be ready to offer them at the right opportunities.

2. Lay the groundwork to pop the question. The best time to ask for referrals from a valued client – to maximize your client profile portfolio – is when you’ve done a great job. Be Subtle. Ask your client if he/she likes the results of your latest project. Making sure that you get a thank you is one of my firm’s internal 60 ground rules for effective client service.

(These ground rules have been instrumental for my being able to sustain multiple client relationships on a month-to-month continuous basis for nearly two decades.)

3. Respond. Give your client a couple of meaningful strokes. Ask your client for referrals to two people just like them – people who will profit from your expertise. Reiterate exactly what you want. Express your thank you to your client and the opportunity to be of service.

4. With the referrals, be prepared to discuss your anonymous case studies and references. Unless your client doesn’t mind, it’s best to be careful with the referrals in how you share your successes. Understand the five strategies to build trust with clients.

Be prepared to ask lots of open-ended questions. Do not criticize the prospect’s organization or employees – even if asked to do so. That’s a rude tactic, and you don’t want to imply that you have knee-jerk solutions – if even they are obvious.

5. Schedule a meeting. Even if the referral doesn’t meet your criteria for a new client, meet with the person. Otherwise, you risk annoying your valued client who gave you the referral.

If you can’t help the person being referred, offer to help find the right professional for the situation. Candidly, I’ve taken on projects referred by clients because I wanted to maintain the strong relationships.

Agree on the next course of action.

6. Follow up. Thoughtful handwritten notes should be immediately sent to both the referral and the client who did the referring.

Thank you notes to the prospect should include the following elements:

• Indicate how it was a pleasure to meet the person.
• Mention one or two examples from the conversation.
• Include your value proposition, and how you will be of help.
• Mention you appreciate the connection because it came from a valued client. (Your referral will more likely want to become a valued client, too.)
• Thank the person, and include a statement to prevent buyer’s remorse.

On the other hand, if you don’t decide to work with the referral, explain why to your client in-person. Remember it’s an opportunity to restate your criteria for new clients.

From the Coach’s Corner, suggested reading:

• Profits: Size Doesn’t Matter but Image, Professionalism Count
• You Can Get Bigger Corporate Accounts in 5 Steps
• Sales, Networking Strategies to Build Strong Relationships

The greatest compliment a client can give is a free referral. 

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Author Terry Corbell has written innumerable online business-enhancement articles, and is a business-performance consultant and profit professional. Click here to see his management services. For a complimentary chat about your business situation or to schedule him as a speaker, consultant or author, please contact Terry.

5 Keys to Start a Small Business Economically

 

It’s important to imagine success as an entrepreneur while making sure it’s not a pipe dream. Business owners have all kinds of stress.

The stress list is long: Fuel, energy and utility costs; taxes, regulatory costs; insurance costs; labor costs, banking fees, product development costs, capital expenses and facility costs.

Stressful economy or not, it’s possible to successfully start a new business. Many entrepreneurs launch their small business with big ideas. Certainly, the business and the owner are synonymous – everything is based on the person’s personality.

To get off to a good start, test your business ideas. Gauge your opportunities for success.

At the minimum, there are five questions to ask yourself:

Do I understand my strengths and weaknesses? Know your limitations. A self-assessment is imperative. Every businessperson has fears, and wants to alleviate their uncertainties about business. The trick is to solve them.

Do I have a clear picture of my dream? Pursue what you like. It’s important that you have a clear, compelling vision of your market. Understand what your business will look like, who the customers are, and how you will manage your venture. Along with your work, don’t omit fun, recreation, and especially family.

What is my business plan? Every business needs an action plan of marketing and operational strategies – a road map for its direction. That includes a break-even analysis for cash flow, and strategies to save time and money. Remember greener is leaner. Home businesses can be successful, but if you need outside space, consider subletting unused space. Allow for flexibility and marketplace changes. Be careful with your branding and value propositions – the reasons why customers would want to buy from you.

Will I go solo? Determine your structure. Consider the legal and financial ramifications, including being a sole proprietor, an S-Corp., or LLC. Basically, there’s only one good reason for a partner – the other person must have strong skills you don’t have for success. A cash infusion is not a good enough reason. Good chemistry in a stressful environment is difficult to achieve.

What will be my support system? Consider whether whether to have a team of advisors – professionals knowledgeable about issues – marketing, financial, human resources, and legal. The minimum I’d recommend is a successful mentor.

Do your homework, work with passion and you’ll succeed.

From the Coach’s Corner, you might want to review the various categories of this portal. They’re designed to be a resource you can use in all aspects of your business, including this three-part series:

10 Scholarly Solutions for Selling More Products – Part one of a three-part series: How to grow your small business. Small business owners face more predators than ever, which makes decision-making about growth seem very challenging.

Marketing Essentials on a Shoestring Budget – Part two of a three-part series: How to grow your small business. Why do businesses sometimes falter?

Management and HR for higher performance - Part three: How to grow your small business. In analyzing the growth rates of small businesses – every great entrepreneur has one salient quality – the ability to be an effective manager.

“An entrepreneur tends to bite off a little more than he can chew hoping he’ll quickly learn how to chew it.”

- Roy Ash, co-founder of Litton Industries