Referrals, otherwise known as getting someone you know to give you warm leads to new prospects, are valuable for entrepreneurs in all niches.
Research shows that a salesperson is 4 times more likely to close a sale to a referred lead as opposed to a cold lead, 92 percent of consumers trust referrals from people they know, 77 percent of consumers are more likely to buy a new product after learning about it from a friend or family member.
Now, you can see how important you need to get those referrals rolling in.
Fortunately, there are ways you can easily get referrals if you can just leverage on it. They are:
Your own customers are the easiest referral source. In fact, if you treat them right, they may well go out and do some selling for you. But don’t just wait for your customers to do all the work for you, always ask them for referrals.
It’s a good idea anyway to check in with your customers a few weeks or months after the sale. You can then ask them how they’re enjoying the product, find out if they have any questions, and then kindly tell them to help you refer to others.
Just after closing a sale with someone is the best time to get referrals from them because they’re excited about their new purchase. Some entrepreneurs are nervous about asking for referrals at this point because they just want to get out of there in case the prospect changes their mind. Hit them up for a referral right away, while their energy and excitement are at the peak.
PROSPECTS YOU COULDN’T CLOSE
If you pitch to a prospect and they turn you down, don’t just let them go immediately. Try getting a referral or two, and you’ll have changed a loss into a win.
A lot of sales fall through not because the prospect dislikes you or your product, but because they just aren’t a good fit. In that case, it’s the perfect opportunity to find out if they know someone who is a good fit. Don’t assume the prospect doesn’t like you and your product. You have nothing to lose by asking.
Anyone you meet under any circumstances can give you a referral. Ask everyone, your mechanic, plumber, neighbor, even the person standing behind you in the supermarket checkout. You’ll be amazed at how many leads will drop into your lap as a result of a brief conversation. Just like I said earlier, you have absolutely nothing to lose.
NOTE: You can only get referrals if your product or service is top-notch and premium. Nobody will want to refer someone to you if you deliver substandard products. People are even more likely to unconsciously refer you if your product or service is quality.