Why You Need Sales Referrals to Hit Your Next Sales Goal

Association of Strategic Marketing
February 17, 2014 — 1,397 views  
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Finding leads through cold-calling can often seem relentless, and at times, pointless. A sales referral can come to your aid during such times. A sales referral is one of the best lead generation techniques, as many selling tips have been claiming for ages. Trust is something that doesn't come that easy to most people when they're dealing with a sales professional. It’s like they're perched to flee at any moment as they doubt everything that's said by the sales professional, as if it were a carefully planned conspiracy. Sound familiar? Well, you need to unleash the power of sales referrals then. These referrals can do wonders to your leads, as most people tend to trust a source that's already been approved of or used by someone they know. Sometimes, it brings about a kind of social pressure, where the referred individuals want to buy it because the referrer did.

Benefits of a Sales Referral

  • You can reduce your sales expenditure and save time by focusing on sales referrals, rather than cold-calling prospective clients, who may or may not respond positively.
  • One satisfied customer can refer you to another, and the cycle keeps continuing, and before you know it, you have your own legion of satisfied customers.
  • Your sales revenue can go up if you use referrals. It is said that there's a 60 percent chance of closing a sale with a referred lead, while one without a referral has a 10 percent chance.

When to ask for a Referral

Try asking for referrals while you're having a face-to-face conversation with your client/ customer, rather than asking for one over phone or email. The likeliness of them giving you one is far more if you ask for it face-to-face. Although, you can ask for it over phone or email if you're operating across different continents or countries. Asking your client for a referral right after closing a deal, is popular among selling tips, although it is certainly not the best. Resort to this only if your client already seems impressed by your product/ service, otherwise it can come across as an aggressive move. Instead, wait around for a while until they try out your service/ product, and then ask for a referral.

How to get More Referrals

Start by setting a goal, as to how many referrals you need to get within a set time frame.  Don't go around bombarding everyone for referrals; just ask the ones that are devoted followers of your brand, probably the top 10 or 20 percent. While targeting these clients/ customers for referrals, give them a fair idea on your customer demographics, so it's effective. Do something extra special for your clients once in a while, they'll appreciate your efforts and probably give you a nice referral. Offer rewards to customers who refer you, probably a discount or goodies so more people join in. Refer your clients to a potential lead and they'll probably do the same to you. Although this might sound a little bizarre at first, it’s a basic principle of helping each other out.

Association of Strategic Marketing