FROM COLD TO HOT: Building Business Through the Referral Process
Referral marketing requires you to talk about yourself in ways that are informative, interesting, and even entertaining. If I've learned anything from teaching the art of self-promotion, it's that most people (yes, even Americans) dread discussing themselves and their accomplishments. And if there's one thing that people avoid even more than self-promotion, it's asking someone else—even an already satisfied customer—for an introduction to a colleague, friend, or relative. They would rather have a root canal than solicit a referral. This probably sounds all too familiar, but don't worry—there's hope!
Asking for referrals makes people feel nervous for a variety of reasons. Clients tell me how they are concerned about annoying or angering someone by approaching them. They are concerned about being perceived as needy or greedy. And, as with other situations where we put ourselves out on a limb, there's always a chance of rejection—and no one likes that. Yet when asked for a referral, most people you know will be genuinely happy to help.
Just as with attending networking events, referral marketing may never become something you love to do. But it's something you must learn to do well. Given that 90 percent of buyers say they never respond to an unsolicited pitch, leveraging the goodwill of clients you already have is one of the most efficient and cost-effective methods for gaining new business.
The following tips—including some examples of my own referral requests for my communication firm and the winery I co-own—will help you brave the referral process.
Get Over The Hump
- Identify which aspects of asking people for help make you feel uncomfortable. Avoid projecting these concerns onto the people you should be asking for referrals.
- Remind yourself that people who know you will generally want to help out.
- Write the following prompt on a Post-It or a note card and place it where you can read it every day: "If you don't ask, you don't get."
- Build a specific strategy and break your plan down into workable chunks. This process will make the task seem less daunting and should reduce procrastination.
Develop Your Referral Roster
- Brainstorm your referral list. Include people who have seen your successes on the job, other fans of you and your work, friends and clients who might like to help you out, people you've helped out in the past, and/or any folks you know with appropriate contacts.
- Write down information about each person: how you know them, how many years you have worked for them, services rendered, and any other relevant tidbits.
- Create a system for categorizing your referrals (I use hot, warm, lukewarm, tepid, cold, and frigid). Start with the top two categories and work your way down. You may find that if you have enough hot and warm leads, you won't need to spend any time on the rest.
Create A Great "Ask"
- Create a great story that will interest and excite others about your work. Make it conversational and use humor. Remember, excitement is contagious.
- If applicable, offer incentives in return for business generated through referrals (i.e. discounts on future services).
- Avoid a canned pitch by tweaking your request for each person based on your relationship with them and your knowledge about their particular interests.
- Example (note the use of humor and the conversational tone): Five years ago I became a 1/6th owner of Lost Canyon Winery, the first winery (now one of four) in Oakland, California. Yes, Oakland—really! Up until then, I didn't know a pinot from a cabernet. And now, due to my husband's love of wine (he made it as a hobby first for 20 years before starting the winery), I've become a vintner. So if you find yourself in northern California between mid-August and October, please come and help with our crush. But if you do decide to come, forget those images you have of a bucolic Brueghel painting-you won't be crushing any grapes with your feet!
Be Specific
- Ask specifically for what you want (i.e. someone you have in mind for them to tell about you, an introduction to a family member, three people to contact in X field).
- Example: I would appreciate any time you could take from your busy schedule to provide me with a few referrals or introductions to people at ________, as well as outside of your firm. Feel free to include anyone you think might be interested in presentation, workplace communication, or executive coaching services.
- Give specific instructions on how they should get back to you and by when. If relevant, create a form they can fill out and return to you.
- Example: George, I know how busy you are, so I've simplified the process as much as possible. Please fill in the information below (for as many people as you wish) and return it to me by e-mail at your earliest convenience. If you prefer, don't hesitate to call me with the information instead—then we might have a chance to actually talk and catch up on everything!
Company:
Your association with this person:
Contact Information (phone, fax, e-mail and postal address, etc.):
Be Ready To Pounce
Some situations beg for a referral pitch, and you should always be ready to ask when the right moment presents itself. Examples of great situations are when:
- A client thanks you or shows other signs of appreciation.
- You've done a great job for someone.
- A client returns for repeat business.
For these spontaneous situations, have some key phrases on the tip of your tongue, such as:
- "Would you know of anyone else who would need our services?"
- "We're always looking for new business!"
- "If you liked what we've done with _______, I'd love to talk with your colleagues/friends/family about what we can do for them."
What Ifs And Zingers
- Watch out for people who respond by saying that they will help, but will need to get back to you. Ask for specific feedback on how/when the next contact will occur. Say something like, "Great, thanks so much! Should I call you back in a week to get that information?"
- Occasionally, the person you ask for a referral or the person you are referred to will not respond or will decline to help. Don't let this discourage you. Simply write a brief note thanking them for their consideration and remember, you have nothing to lose by asking.
Create A Tracking Plan
- Create a schedule for contacting the referral (initial contact & follow ups). When making the initial contact, ask how they prefer you to contact them in the future.
- Decide how many times to follow up: Two weeks after the first call? In one month? In three months?
- If people aren't getting back to you, come up with a script for your final voicemail or e-mail, such as: "I really don't want to be a bother, but Chris Smith referred me to you and I would love to have an opportunity to talk with you. I've already called twice, so I won't call again, but here is my contact information. I hope to hear from you soon."
- There are numerous types of tracking software available. Do some research to find the right one for you. In my office we use a customized version of FileMaker for managing the referral process.
