Wednesday, November 04, 2009
Referrals are one of the most well known forms of strategic alliance opportunity. But for many small business owners they can also be one of the most difficult strategies to get working effectively.
There have been many occasions when members of the Networking World community have told me “ We had a meeting, we agreed to refer business to each other … then nothing happened”.
I am reminded of a conversation I had a couple of weeks back with Glenn Kirkwood “That Referral Guy” . Well you can probably guess from Glenn’s tagline that he is something of an expert of referrals. Members of the Networking World Strategic Alliance Success Program will be able to access the full transcript of my interview with Glenn in the member’s library.
In this article I want to share with you one tip that Glenn shared with me that absolutely STOOD out! TCP. I remember TCP because it is the same acronym as a Dettol like substance my mother used when I was a child for everything from applying to stings and grazes to gargling for sore throats. A universal cure-all.
So what does TCP stand for in the world of referrals? And can it be a universal cure-all?
TCP stands for Trust – Credibility – Profits
Trust with your referral partner
Credibility with the people you refer each other to
and finally
Profits!
The important thing being that the trust and the credibility MUST come before you even think about the profits and THAT is where most people drop the ball when it comes to getting the most from their referral efforts. Implement that simple two step strategy and you will see your referral leads and conversions explode. I guarantee it.
So first – what are you doing to create TRUST with your referral partners?
I don’t know about you but I don’t give referrals lightly. And we shouldn’t! Give a referral and your business reputation goes along with it – good or bad! So don’t expect other people to provide you with referrals without earning the right first. And that means earning their trust. Obviously that means putting effort into developing a strong relationship but you also have to earn their trust in your ability to deliver high quality products or services. One way to do this is to introduce them to some of your happy clients. Another way is by providing them with samples or an experience of your products or services. Think about the cost of advertising that has to be done over and over again and compare it to the one time cost of building trust with an alliance partner who will be able to generate a steady stream of leads for your business. Remember you have to give in order to receive.
Secondly what strategies do you have in place to build credibility with your referred leads?
The sad fact is that many people believe that a referred lead is as good as sold and all good selling skills go out the window! Obviously a referred lead is often easier to convert than a lead that came from an advertisement. After all people prefer to buy from businesses and individuals that they know, like and trust. If a good friend referred you, then you have is a little bit of trust. (Unless of course, they don’t trust the person doing the referring.) But you still have to turn the lead into a client by showing them what benefits you offer and the best way to do that is through providing a free information or education product – this could be a booklet, e-book, CD or video. Whatever works best for your industry or profession.
Then the next time you call up a referral, instead of saying, “Ken said I should call you; I understand you are looking for “your products or services”?” tell them that Ken felt that your booklet, “Ten Ways to Know if Your Accountant is Losing you Money ” , or whatever education product you have developed for your business or profession, would be of interest to them and that you would like them to have a free copy.
By starting with this type of education process, giving before you trying to sell anything, you build credibility with your potential clients. (Nobody wants to be sold to.)
It helps with getting those referrals too. What a relief for the person doing the referring to know how their valued client or friend is being treated! How often have you hesitated to give a referral – no matter how great you believed the product or service to be – if you thought you were going to subject your friend or associate to a “Sales Pitch”?
The result – You’ll gain MORE and better-quality clients
Implement this simple two-step approach to your referral strategy, and you will find that
you acquire more referrals, convert more of the right kinds of clients and have a better relationship with your referral partners. The PROFITS will follow.
Good luck with your referral strategies. To find out more about making referrals work in your business check out the Networking World Strategic Alliance Success Program or contact That Referral Guy.
