1 Webinar Putting Referrals Into Action Welcome back to No More Cold Calling OnDemand TM. Thank you for investing in yourself and building a referral business. This is the companion guide to Module #8. Take Notes, Make It Yours Putting things into your own words, noting what s important, drawing connections, and creating action items make these webinar sessions more personal and specific to your business. I welcome you to write on these pages; make them your working referral-selling documents.
2 As we begin our final session together, you have already identified your most important sales activity, and you know that generating qualified leads through referrals will get you only hot sales leads, allowing you to convert more than 50 percent of those to clients. You know how to use referrals to impact your bottom line and double your sales footprint without adding costs. You are building your skills and you understand the process. To review, we learned in the last module about how to stay in touch with Referral Sources, the importance of practice, and how to ask with confidence without using begging and pleading questions.
3 Your assignment for Module #7 was to practice with three people (in addition to the one practice partner from Module #6). Your only purpose was to practice and to receive feedback. If you have not practiced and received feedback from at least four people who are not members of your household, and who know very little about your business, please don t start this last module. Practice is key.
4 Remember, when you receive a qualified referral introduction, you get a new client at least 50 percent of the time (often, it s more like 70 to 90 percent). So, let s do the math for your business. On a sheet of paper, write down how much you made last year (or in the last 12 months, whichever you prefer). Only include your earnings, not your revenue or profit.
5 Now, take that number and multiply it by five, because you will convert a client at least 50 percent of the time. This is your stretch goal. Then, take that same number and multiply by 2.5. This will be a very conservative estimate, so we ll call it your actual goal. In this module, we ll review concepts from earlier sessions, but we ll also learn a few new things. First, we ll take another look at the Referral Framework your process for building a referral business as well as some unexpected questions that may come up, when to ask for referrals, and how to set referral metrics. Finally, we ll discuss your next steps.
6 You first saw this Referral Framework in Module #2, when we outlined all the steps and your benchmark process. Now that you ve completed these modules, you have learned to incorporate referral selling into your sales process and are becoming an expert. Let s review the next three steps in more detail. The third step in the referral-selling process is implementation. And the first step toward implementation is to build individual referral plans for every member of your team (or just for you, if you are a sole proprietor). These plans will include specifics such as how many people each person will ask each week. Remember, asking for referrals should be part of your daily process, so check in at least once a week to make sure you re on track.
7 Individual referral plans should also include the number of referral meetings you intend to schedule and/or conduct each week. How many new clients will you secure each week through referral selling?
8 If you have clients with whom you work on more than one project, you might also set goals around how many new client projects you ll secure. How could you cross-sell different products and services or up-sell by adding new solutions, consulting, implementation help, or other perks? All of this should be in the individual referral plans for every member of your team.
9 The fourth step in the referral-selling process is to assure quality. You assure quality by creating accountability. This means being clear about who is responsible for what. Obviously, salespeople should be accountable for referrals, but other people in your organization know people. Make them accountable for introducing the sales team to two people each month, or perhaps four people each year. Just remember, everyone has a role. The second way to assure quality is to recognize and reward success. Many of my clients reinforce referral selling by blasting out s or social-media notifications when someone secures a new referred client. This reminds employees that referrals are a priority and that this strategy can be successful.
10 Make sure everyone knows that your salespeople get meetings at the level that counts as a result of referrals, and that this is now the way you work. It s not a passing phase; it s your business-development process. The final step in the referral-selling process is to measure results. How will you know when you are successful with referrals? Here s where we establish metrics. You may want to increase your revenue by 20, 40, 50, or 75 percent. Or, now that you know about PITA ( pain in the ass ) clients, you may choose to measure profitability instead. You could also measure the number of new clients, or increases in different vertical markets, or additional services that you are able to include in client projects. It can get complicated when you start talking about all the options, but remember that metrics need to be simple and easy to understand. Choose whichever metrics work best for you, but be sure that you are tracking your success.
11 Above are some basic metrics that might help as you consider what to track. My goal for you is that referral selling becomes hardwired into your business so that it is the way you work. I know we are all tempted to go back to what has been comfortable for us (regardless of whether it was successful). This process works when you make it your No. 1 priority. I worked with one company that seemed excited about working through referrals. But at the same time their sales team was implementing my training, they were working with someone else on telemarketing calls and another person on writing cold s, so the referral training got diluted.
12 This does not mean that you should not implement other strategies, connect with your networks, or utilize social media. But it does mean that referrals are your priority, and most importantly, that you are not cold calling. Where do you go from here? Go back to the list of 100 Referral Sources you built using the Referral Wheel. Remember, this list should be organized by the people you know best at the top. Then, set your weekly goals for how many people you will contact (minimum of one per week, preferably more).
13 In Module #5, we listed the (above) categories of potential Referral Sources. I asked you to choose the three sectors in which you know people best and start there as you build your list. Then, within each category, you listed everyone you know with the people you know best in each group at the top, because that is where you are going to start.
14 And, of course, you will be asking these 100 Referral Sources using the attract process. By now, you should have identified your three top categories, built your list of 100 Referral Sources, and practiced the attract script in person with at least four people. Then, and only then, is it time to ask the #1 person on your list (i.e., the person you know best in your top category).
15 When have you earned the right to ask someone for a referral? With anyone you know well (e.g., a friend or colleague), you have already earned the right. You have also earned the right with people you have provided interesting information or made valuable connections. Recently, I received a call from a man with a new business who learned about me through social media and reached out. I spent 20 minutes talking to him and giving him ideas. Before I had a chance to ask, he said, You have given me so much of value that I am going to look for opportunities to refer you. There are also people we meet with whom we just connect, even though we haven t known them very long. Often, these people will ask how they can help. At this point, you have earned the right to ask. And don t forget to return the gesture.
16 Also, with all the groups above, you have earned the right to ask, no matter how seasoned you are this category. Remember, your current clients are your most under-leveraged source of new business, so don t miss opportunities to ask them for referrals. It s easy to forget. In fact, several people tell me they put a sticky note on their computer monitor with the word, referrals written on it. One of my clients recently told me about a call he got from a very happy customer, who was calling to thank him for how well their project together went. My client said, Thank you, and hung up and then hit himself on the side of the head when he realized that he should have asked for a referral. All of these groups of people know, like, and trust you. So, develop those relationships and ask for referrals.
17 You have NOT earned the right to ask someone you just met at a networking event. Remember, your goal at networking events is not to get clients; it is to expand your Referral Network by having two or three nice conversations, develop a few relationships, connect other people, learn something new, and have a good time. Where in the sales process do you ask? Any time you have delivered value an idea, an article, a connection, or any other way that you have helped. These moments are easy to identify, because this is where they will usually say thank you.
18 You don t have to wait until after implementation, when they see results. When you have been referred, they already think highly of you. There may be times when you do everything right. You follow the attract process, are clear about your results, ask your Ideal Clients for referrals to other people like them, and still, you get this response: Gee, I would really like to help you but I can t think of anyone. If your Referral Sources can t think of anyone who fits your description, all is not lost. Often, they can t think of anyone because they weren t expecting the conversation, but upon further consideration, they come up with great names.
19 Some people will never think of someone, but that will only be the case about 2 percent of the time. These people don t get it and are never going to refer you, so just walk away and work with other 98 percent. Whenever I ask a Referral Source who can t immediately think of someone to refer, I first make sure I have been clear enough about what I am asking for. I consider: Did I give a dynamic explanation of the return on investment my clients have seen? And have I been specific like an artist in describing my Ideal Client? I often ask the Referral Source to repeat back to me what I said, because many times, we think we have been clear when we haven t. If I have been clear, and they still can t think of anybody, I craft a very short (just a few sentences and some bullet points) summarizing our discussion and reminding them of my results. Then, I thank them for the offer to refer. Most of us are visual learners, so once they see this in writing, things might click that didn t the first time around. At the very least, they save this information for when someone comes along who does fit your description. Stay in touch. You haven t lost a thing; in fact, you have gained future opportunities.
20 What do you do when someone offers to refer you but doesn t follow through? This happens; people get busy. So, I wait a week and then send an saying, I would really like to follow up with George but wanted to know if you have had a chance to connect with him. If you keep it nice, not demanding or accusing, the person will usually send an introduction right away, without being annoyed or embarrassed. What about gifts? People often ask if they should reward Referral Sources? My short answer is no. People refer good people, because their reputations are on the line. You couldn t give me enough money or gifts to refer someone I don t believe is a right fit. I think we need to work from that premise.
21 That said, I have occasionally sent gifts to people who were kind enough to refer me to several people. But I keep it simple less than US$50, perhaps personalized stationery or something similar and I send it when they don t expect it. By this time, I have, of course, already sent a thank you note. I also understand that some industries, such as entertainment and advertising, are big on gift giving. In fact, one client told me, If this referral works out, you are going to get a fabulous gift. But I didn t want a gift; that s not why I introduced him. This is not a motivator; it s more of a bribe, and I don t agree with it. Some companies pay for referrals, I don t agree with that either. Recent studies show that offering monetary incentives for referrals means attracting smaller clients who are less serious about our products and services, and who we are less likely to retain for long. On the other hand, some companies (very wisely) offer monetary referral incentives to employees additional compensation when salespeople or anyone else in the company brings in referrals. This goes back to rewarding and reinforcing referrals with your team, which is smart.
22 Remember, the biggest reason most salespeople don t ask for referrals is because doing so feels uncomfortable. It feels pushy, or salesy, like intruding on a relationship to ask for help. Worst of all, they might say no, which would be a personal rejection.
23 Always keep in mind how you feel when you re on the other side of the table. When you refer people, you help them, and that feels good, right? And in doing so, you are becoming a resource for both of the people you re connecting. Remember, avoid begging and pleading questions such as I was hoping or Do you mind Ask with confidence.
24 Remember to clearly describe your Ideal Client. Like an artist, include as many colors and lines as possible when you paint the picture for your Referral Sources. Use the profile above and specifically focus on the kind of the person you want to attract and the situation or need that your solution addresses. Doing so makes it easier for your Referral Sources to think of someone, and you re more likely to get exactly the types of referrals you want. Be ready to communicate the business results that your product or service offers. Numbers are great, but people also love detailed stories.
25 Remember to ask your current clients for referrals. Even when you change companies, you can still ask. People refer you; they don t refer your company. Always remember to get the introduction. Without an introduction, you re cold calling.
26 Equally important is remembering to follow up. I often hear people complain about salespeople who were supposed to call them but never did. If someone refers you, make sure that you attempt to connect. None of us are thanked enough. Be sure to thank everyone who refers you first in a handwritten note and then through other forms of communication.
27 I have probably stressed this one enough, but I ll say it one more time: Practice, practice, practice. Remember, you are the only one who can qualify leads.
28 When we practice referral selling, all of our leads are qualified and HOT! Referred prospects know us and are expecting our calls. We shorten our sales cycle, erase the competition, and double our sales footprint without adding costs. As we wrap up this webinar series, here s your action plan going forward. First, list three things you will commit to doing in the next 21 days. Perhaps you want to build out your list of Referral Sources. Or perhaps you haven t practiced enough yet. Maybe you have more work to do on your Ideal Client Profile. Or it could be that you really need to gather and polish more results stories.
29 Whatever efforts would make you stronger at referral selling, do them in the next 21 days. Research shows that if we don t change our behavior in 21 days, we won t change at all. In fact, some say change has to happen in 72 hours. So, don t procrastinate. Be sure to list your three activities, build your Referral Source list, enlist an Accountability Partner, and practice. To review, your Accountability Partner can live and work anywhere, as long as you can speak via phone on a weekly or twice-a-month basis. This is not the same thing as your practice partners from the last two modules. Your Accountability Partner is someone with whom you will continue to meet and brainstorm about challenges, ideas, and issues going forward.
30 You have now built your referral-selling skills and crafted your process. You know how to benchmark, implement, assure quality, and measure results, and you have become the expert. Now, it s my turn. It should be no surprise that I am asking you for a referral. My Ideal Clients are companies that would benefit from webinars like this. I typically work with sales teams of at least 20 people. Location doesn t matter; I am willing to travel or to communicate online. I typically work with technology companies (specifically with software companies) and also in financial services. I also speak at sales meetings and conferences. My best contact is the vice
31 president of sales or someone who runs a sales team. In a smaller company, this might be the CEO. So, who do you know? To whom could you make a personal introduction for me? I would love to send you a hand-written thank you note for your referral. Please stay in touch, and refer to these resources for more information. If you haven t signed up for my newsletter, you can do so at my website: Check out my book to learn even more about the art of referral selling. And or call me anytime.
32 When you work this program, it works. Please keep in touch. I want to hear about your new life as a referral star!
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