By Beth Barkovich, July 2010
80% of all business is somehow tied to a referral. That’s a big number. It says that referrals should be your largest resource for lead generation.
If things are going well, referrals should be oozing from every corner of your business. If you have to think back more than 60 days since your last referral, you may be seriously hurting your company’s chance for future growth.
Amidst all the hype around social media, Google Adwords, cross-linking, email marketing and other online forms of lead generation, companies we talk to are finding it increasingly harder to find the time to groom for referrals.
A word of caution may be in order: “While you can’t ignore the new, it’s never wise to forget the old; especially if old still works, like referrals.”
How do I “groom” for referrals?
There is rarely a one-answer-fits-all for any business and the training industry is no different. As a company that talks to many suppliers in various training segments, we have constructed a list of strategies we’ve heard others use successfully to grow referral business.
- The Sales Force Referral. Many sales professionals are reluctant to ask for referrals, yet this is a straight-forward and respected method. It is perfectly ok for a sales rep to ask the client of they know of anyone who may benefit from your services. Even if your prospect doesn’t buy, still ask because there is nothing to lose if they weren’t going to buy anyway. You can even use a bit of reverse psychology by asking “I realize this service may not be of interest to your company, but can you think of another company that wants to improve their sales training?” (Obviously substitute the type of training you are offering where the word “sales” is…)
- The Bring-a-Friend Referral. This is great for companies who offer seminars, workshops or classroom trainings. Attach a value added gift or discount to the client who will bring a friend, such as a two-for-one discount. Often people will be more inclined to attend if they are coming with someone they know.
- Current Client Referral. Remember, every one of your existing customers already knows every one of your potential customers. Are any of your clients large enough to have separate operating divisions or holding companies? If so, it never hurts to pick up the phone and ask for the contact information for those who run the training for the other divisions. It even allows you to play a discount card – that if their other division signs up, you can offer them both a larger discount.
- Share your Success Referrals. If you’ve helped a client to improve in any area, you should be shouting it from the mountain tops. Ask for testimonials and use them on your website. Testimonials are the greatest marketing asset your company has – they generate referrals all by themselves, and boost your credibility. Find a way to gather and use them regularly. Even if the client won’t allow you to use their name, you can often use a title, or city and state to link the testimony to the real-world. Another angle on this thought is to develop Case Studies or Feature Articles that highlight how you’ve helped another company – these can be published on various industry sites and micro-sites. We will have more on this topic in our next newsletter.
- The Networking Group Referral. Today’s B2B world is fast paced. We are seeing a trend that many companies are falling into the same “I want to have it now” mentality as consumers. The lost art of networking needs to be found again, where people are willing to take some time to get to know the person behind the company, and build a relationship on trust and human characteristics. This takes more time, but builds far stronger networks. The stronger your network of real people, the bigger your referral base grows, and soon those people will be recommending you without you having to ask. This can be especially true if you’ve reached out to them first, and sincerely offered a way to help them with an aspect of their business, without making your needs a part of the equation.
- The Industry Event Referral. Look for industry conferences and events that you can attend, online and in person, to create such bonds. Don’t overlook that value of a smaller event that puts you face-to-face with industry experts in less formal environments. We’ve witnessed some pretty big deals taking place in smaller, more intimate settings.
- Past Contacts as a Referral Source. Many of you have been fortunate enough to make a real connection with a handful of folks at other companies, even competing companies. If you’ve been disciplined enough to stay in touch, for the sake of staying in touch, these contacts can become a wealth of referrals as you advance in your career or as your businesses grows. You never know when the opportunity will arise that you can work together on something that will benefit both parties. Also, who do you know who is retiring (or has retired) from a position that could give you an inside referral at one or more companies? Make a list, check it twice, and save it forever! This list is a valuable piece to long term connections that can sustain a business.
One thing we do know, it is clear that a company has to be willing to get creative to find ways to encourage referrals. Often that creativity is just under your nose, you simply have to learn to reach out and grab it.
