| Every salesperson and professional advisor should | | | | impractical. |
| already know that referrals are the best sources | | | | Your referral strategy must therefore also include |
| of new clients for their business. Better than | | | | ways and means to incentivise clients to give you |
| advertising, marketing or cold calling. | | | | referrals. You need to address both what you can |
| Referrals are more likely to be qualified buyers, | | | | incentivise clients with and how you will offer the |
| more likely to buy, cost less to acquire, are likely | | | | incentivisation. |
| to buy more and take less time to covert. | | | | I am not talking about a “bribe”. |
| It’s easy to get the odd referral here or | | | | Your incentivisation needs to be small in monetary |
| there. Many professionals can even generate a | | | | value, but high in other value for your clients. This |
| several referrals over a month or two. The key, | | | | is of particular concern in the financial, legal and |
| however, is to keep the referrals coming in a | | | | accounting industries. |
| steady stream over a long period of time. | | | | You may be surprised, however, at what free or |
| That requires a more concerted and thorough | | | | low cost incentivisation schemes you can create |
| strategy. There are five keys areas you need to | | | | to help drive more referrals your way. |
| cover to create a strong referral strategy. The | | | | This part of your strategy is unlikely to be as |
| outlines of each are covered below. | | | | effective nor result in as high a quality as asking |
| Of course, I am already assuming that you are | | | | for referrals. Instead, it’s the |
| giving great service and can generate trust in | | | | “filler” strategy to bulk up your |
| your clients – without those two elements, | | | | referral inflow. |
| any referral strategy is dead before it begins. | | | | 4. Overcoming objections. |
| 1. Informing your clients. | | | | Having informed, asked and incentivized, you will |
| Planting “referral seeds” is the first | | | | still face clients that either will not or seem unable |
| step. Right from the start of every client | | | | to provide you with referrals. In this case, you |
| relationship, you need to be looking for ways to | | | | need to understand what is behind their reluctance |
| inform your clients and prospects that you need, | | | | and see if it’s possible to overcome this |
| value and expect referrals. | | | | resistance. |
| This needs to include your branding, advertising | | | | Often their reluctance is driven by a lack of |
| and client conversation skills. A good strategy in | | | | understanding of how you will contact the referral. |
| this area will make the later stages less | | | | Talking through your contact procedure with a |
| confronting for both yourself and your clients. | | | | client may help them gain confidence that you will |
| 2. Asking for referrals. | | | | not “let them down”. |
| Having informed your clients that you need | | | | Still, in certain industries and with certain clients, |
| referrals, you need to be comfortable actually | | | | referrals can be tricky to obtain. An alternative |
| asking for them. It might seem obvious – | | | | might be to ask them for a testimonial letter |
| and while there are other ways to obtain referrals | | | | instead. Your strategy should therefore include |
| from your clients – asking for referrals is | | | | how and when you might switch from referrals |
| still the easiest and quickest method. | | | | to testimonials. |
| This part of your strategy needs to address not | | | | 5. Contacting referrals. |
| only how and when you will ask for referrals, but | | | | Remember that there is a difference between a |
| in a manner that you are comfortable with. I | | | | referral and a lead. A lead is just a name. A |
| cannot stress that point enough – there | | | | referral is a name and a client. A referral strategy |
| are many good books which outline a variety of | | | | doesn’t just obtain names. It also obtains |
| different methods to ask for referrals but | | | | the involvement of your clients in the process of |
| it’s critical that whatever method you | | | | contacting the referral. |
| choose, you must be extremely comfortable with | | | | Your strategy needs to consider how you will |
| it. | | | | involve your clients in the contacting process and |
| Given you will face a variety of client personalities, | | | | what contact options best suit your industry and |
| you will also need at least 2-3 different ways to | | | | clients. |
| ask for referrals depending on the situation. Your | | | | Many referral strategies fall down in this area |
| strategy needs to include a checks and balances | | | | – having worked so hard to obtain the |
| to ensure you are getting quality referrals as well | | | | referral, they then fail to maximise their |
| – and not just any old name. | | | | conversion rate by involving the client that made |
| 3. Incentivising referrals. | | | | the referral. |
| While you may expect that giving great service | | | | Conclusion. |
| should generate referrals, you will be disappointed. | | | | If you can give careful thought to these five |
| If clients have paid a fair price for your service, | | | | areas, you will be able to define a thorough |
| then they don’t owe you anything extra. | | | | referral strategy covering all aspects of a referral |
| Sometimes asking for referrals may not be | | | | business. Ultimately, you will drive better quality |
| enough – or your client base may be so | | | | clients into your business on a more regular basis. |
| large that asking every single client is just | | | | |