If your company had exhausted all of its marketing dollars and could not spend anything else on lead generation, what could you and your colleagues do to create income?
Client referrals – one of the highest sources of leads throughout the world!
However, if you ask for them, 9 times out of 10 what will happen? You won’t get them. Many people are afraid of pro-actively generating referrals, because they haven’t been taught how to do it correctly.
To overcome this fear, think of referral strategies as a giving process to your new clients, that say “Thank you for getting started.” If you never want to hear the response “I can’t think of anyone” from a customer simply change your vocabulary! Instead of asking “Do you know anyone?” (closed question) ask “WHO do you know from your colleagues, friends or family members that would benefit from (benefit your product offers)” (open question). And see your referrals soar!
Two Reasons to Ask at Point of Sale
Psychology of ownership
People HATE to be sold to, LIKE to buy but LOVE to own. i.e. MY personal trainer, MY business coach, MY new car. By referring others to your business as soon as they purchase, your clients and customers will feel as though they belong – and will be more likely to buy again!
Clients are most excited immediately after purchasing.
We make buying decisions emotionally and justify logically. One way to logically justify them a purchasing decision is to confirm your decision, by referring others to buy as well.
Six steps to create a successful ongoing, Point of Sale referral strategy for your businesses:
- There must be a full program in place. Have your sales strategy planned. What will you offer new referrals to get them involved? A complimentary experience of your product? A discount if they go ahead with purchasing? How will you contact them with this offer? Have a plan set out and inform all staff.
- Have clear client entitlements. What will you give your clients in return for their nominations? Some things that have worked for clients in the past: wine, champagne, chocolates, and vouchers.
- Scarcity strategy. This is usually the biggest problem that clients have had with previous referral campaigns. If anyone can qualify for the offer or have as many of the product as they want, there is no perceived value to them.
- A value. If you?re offering something for free attach a dollar value to it to increase its significance and your customer?s desire.
- Have paperwork ready.
– Nomination slips – for clients to write referrals details on.
-Referral register – to track who has referred whom and ensure the sales team remains responsible for the outcomes.
-Follow up strategy – prompts for what to say when referrals are contacted; and a tracked process to go through with them - Qualification strategies. No one wants to spend time contacting people who will never be able to use their product. Develop some questions for the client to determine if their referral is a quality lead. Depending on your business it may include things like; Do they live or work locally? Have they used a similar product/ service in the past? Are they in a contract with another provider?
