The power of word of mouth has never been stronger. Prospects are relying on personal referrals and testimonials of people they know to help them make buying decisions. The "Public Pulse" reports that more often than not, buyers say they rely most on their business network for information on a variety of issues. Issues range from what Casualty & Property Insurance company is recommended, to how to choose good salespeople, and where to buy products. Fewer prospects, meanwhile, depend on editorial and advertising sources for information. People tend to rely on word of mouth because it is based on their existing relationships and the credibility of the person passing the word along. It increases their sense of comfort with the decisions they make. For these reasons, the recommendations of others are helpful to everyone who is involved in purchasing decisions.

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Studies in some industries show that 80% of all buying decisions are based on a recommendation from others. The simple fact is that a positive mention of your name gives your prospects an increased level of confidence and gives you increased creditability, thereby also giving you greater access to them and a higher close ratio percentage.

Of course, all word of mouth needs to be positive. Any negative word of mouth will do considerable damage to your relationship selling and prospecting efforts. One of our clients once said to me; "Although a lot of salespeople talk at length about how much smarter, better, stronger, and quicker they are, their word of mouth is killing them."

Regardless of how you may perceive yourself as an advisor, problem solver and consultant, it's the buyer's perception that ultimately determines your success within a market. SFI has discovered that three referrals typically result in one nearly immediate sale. In addition, another sale will usually result from word of mouth over a period of time. The more referrals that salespeople acquire, the easier it is to become well known and to build the quality relationships necessary to earn the right to present your products and services.

Here are several tactics sales professionals can use to effectively acquire referrals:

Tactic #1: Recognize that everyone benefits from referrals.

Buyers often give referrals because it is a way for them to help their network. Friends, colleagues, and others are helped in their process to acquire the quality goods and services that you offer. People feel good by helping others and they get the hard to come by "positive stroke" from the person they referred and the salesperson. Buyers give referrals because they like to help each other out. Then they have more time to play golf together!

It is natural and intrinsic human behavior to help others, but throughout our lives we have been taught to wait until someone asks for help. Contrary to this learned behavior, a salesperson asking buyers for referrals is not intruding, nor showing themselves needy. They are making the buyer feel good.

Tactic #2: Let people know why you need referrals.

It's very important for the customers, centers of influence, and prospects to realize that there is a "win" in it for them in giving referrals. Buyers know the salesperson wants to grow their business, just like they want to grow their business. What they don't know is that by giving their salesperson good referrals, they will be doing less "cold calling" and more customer service.

A salesperson's goal is to reach and work with more people like them - a qualified buyer. Tell them that you want to continue to specialize, that you enjoy working with them, and that their personal referrals will give you an opportunity to serve them and other people in their network, occupation, interest group, etc. This lets them know that the sales professional's motives are growing their business to a point where they will be able to provide more service in a very focused and professional way. It will also make it easier for you to ask, because you are focused more on them and less on yourself.

The simplest way (not the best way) to ask for a referral is; "Now that you know who I am, what I do and how I do it, if you were me, who in your network should I be talking to?" The key phrase is 'if you were me', because if they were themselves they could not see themselves talking to others about the salesperson's products and/or services.

Another example is, "If you feel that I've been helpful and professional, I would like you to tell people that you are my client. This will allow me to help those people just as I helped you."

Tactic #3: Create a referral talk.

You should have a well-honed good referral profile presentation for use with every customer, center of influence, and prospect. This will make it crystal clear what is a good referral to give. It also makes it easy for them to understand what the salesperson's needs and motives are. The referral profile statement simply starts like this; "The types of people my clients typically refer me to is... (Fill the rest in with 6 to 8 ideal profile factors)."

Practice your referral talk with your family, friends, and colleagues. Sharpen your talk so that it sounds natural and comes forth easily.

Tactic #4: Make it easy for referrals to be delivered.

It's not always easy for someone to think up some names of people they know in the sales professional's niche without help. Every sales professional should have at least ten top target prospects. Put them on a printed single page list. Sales Focus Inc. found that it's much easier to prompt and stimulate the individual to give referrals by giving them the names of 10 or 15 people in the market that the salesperson is going to be calling on. The way to use this list is simply to show the buyer the list and say, "These are individuals in your industry that I will be calling on. I do not suppose you know any of them on a first-name basis?" Usually, they will select one or two names from the list. Then ask, "Who have I left off this list?"

Tactic #5: To get quality referrals, ask clients to verbalize how they feel you helped them.

It's occasionally difficult for customers to think of a referral because they've never really thought out loud about how the salesperson has helped them. An effective way to solve that problem is to ask questions such as, "How do you feel my services have helped you?" Ask open-ended questions germane to your products and services. Be sure to ask in a way that stimulates your customers to think about your value to them, and then ask for their referrals.

Tactic #6: Always ask for referrals even if your prospects don't buy now.

Sometimes prospects will tell you they're not ready to buy now. That being the case, ask for referrals from them even though they haven't bought yet. Let them know that the reason you're asking is to be able to build a quality relationship with more people like them.

Tactic #7: Ask for referrals and testimonials consistently and constantly.

There is much confusion as to when and how often a salesperson should ask for referrals. Some presume they have to prove themselves before they have the right to ask for referrals. That presumption is wrong and it more than likely will have a very negative effect. During that period of time, the salesperson has had, for example, 7 face-to face meetings, 12 phone conversations, sent well over 36 emails, and some letters. Then for the first time the salesperson asks the client for a referral, which is totally out of character within the established relationship. The client will immediately go suspect. They will question themselves; "Is the salesperson's company in trouble?" "Is the salesperson about to get fired?" "Should I start to look for a new vender?"

In reality, salespeople should ask for referrals on the first call and many times there after. By asking more than once, the salesperson has created a cumulative effect and greater results. Ask at the very first appointment, whether it's with a prospect, a previous customer, or a center of influence. People do not have to buy something in order to refer you or to pass along positive word of mouth. They simply need to feel confident about you and your product and/or service. Ask early and set the stage. Ask at the time of the sale. Ask for referrals before you get all the paperwork completed. Otherwise, people are rushed, and wanting to move along to the next issue in their lives. So bring forth your referral talk again while you're completing the paperwork. Ask for referrals at the time you deliver the service and/or product. People are usually euphoric at that time and it is an excellent time to leverage. Ask for referrals when you send a thank-you note for the business. Ask for referrals and testimonials in the follow up call, when the salesperson is finding out how the product and/or service is working for them.

Ask for a referral early and frequently. It is your right!
 

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About Sales Focus Inc. Sales Focus Inc. is a consulting, training and outsourcing company that focuses strictly on sales. We help our clients during these difficult times to take business away from the competition. In down economic times, focused companies will not only survive, but also thrive! We offer cost containment and profit enhancement solutions. Profit enhancement is a different mindset than cost cutting. Cost cutting means doing less of something; profit enhancement implies doing more of something that will boost the bottom line. We represent the concept of focused profit enhancement solutions. Sales Focus is driven towards a single goal: "Generating Immediate Revenue for our Clients!" Whether it's implementing our S.O.L.D. Methodology, Developing Specialized Training Programs or Launching an Outsourced Sales Force, we remain focused on the goal of TACTICALLY GENERATING RAPID REVENUE.

For more Information or to see if we are a good fit with your company, contact us directly, 866.840.8305 or 410.442.5600, send us an email at info@SalesFocusInc.com or visit our web site: www.SalesFocusInc.com. Request a free white paper while calling us or visiting our website.

Sales Focus Inc. 3210 Florence Road, Suite B Woodbine, Maryland 21797 P. 410.442.5600 F. 410.442.5102 Toll Free: 866.840.8305 URL: www.SalesFocusInc.com

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