REFERRALS ARE MOST “BANKABLE”
By Andrea Nierenburg
The Nierenburg Report, Vol. 3, No. 2
www.selfmarketing.com

We conducted a national survey in conjunction with New York University’s Management Institute, and asked, “How would you rate the best techniques to find new customers?” The data from more than 900 sales and marketing professionals revealed that sales professionals still give “cold calls” a “cold shoulder,” and referrals are the most “bankable.”

Participants were asked to rate the importance of techniques to generate new customers by using a scale of 1-5, where 1 = not important and 5 = very important. The following was discovered:

Selling Option                         Average Score

Referrals                                4.8
One-to-One Marketing              4.5
Direct Mail                              3.8
Trade Shows                          3.2
Cold Calls                               1.5

The best part of referral selling is that it only takes a few simple steps to tap into the most successful form of securing new business. Here are some suggestions:

1. Do a great job for ALL of your clients. A person reaps what he or she sows. When we work to have a positive relationship with existing clients, that will yield a tasty harvest of referrals.

2. Ask for the order. As you would directly ask customers for their orders, do the same thing with referrals. Simply ask them who they think can benefit from your product or service.

3. Keep everyone in the loop. When you connect with a referral, make sure you keep your original client informed. Call or write to say you made the call, or secured an appointment. Even if it “appears” like a shot in the dark, keep your original contact up to date. This might encourage that person to put in a good word for you.

Most people forget the follow-up phase. That’s what always separates the professionals from the amateurs. Our best customers can become our best advocates, only when we take care of them and show our appreciation. One of the managers I work with gets a weekly email that updates her with the progress I am making with the referrals she has given to me.

All profitable business relationships take time to cultivate. However, when they come from referrals, you can shorten the distance between the first call and the closed sale.

Remember…
Word-of-mouth, referrals, and networking are very important elements to the success of the advertising/promotional plan for your business. However, they should not be the only part. Care should be given to ensure that your message is reaching the most customers and prospects possible, in a way that is effective and affordable.