Hands down, the best new leads come from referrals. These prospects are likely to be highly qualified, since someone close to you thinks they might be a good fit. Even better, the implied endorsement means the prospect is going to give you at least some serious consideration. So close rates on referred leads tend to be high. And since they cost you next to nothing, the ROI on referrals is stellar. The only problem is: you can’t expect to meet your sales quota through referral alone. But what can you do to pump up your referral rate, and get more of these gems?
Plenty. Here are four tips for generating more leads through referral.
Ask, often. Business people have a natural tendency to be helpful to their colleagues. It’s just the way business works. So most of your customers and contacts are generally predisposed to give you a referral. But you have to ask. Review all your touchpoints, inbound and outbound, and add a referral request wherever it’s reasonable to do so. Think about your email footers, your home page, the P.S. on your postal letters, your LinkedIn company page, your billing statements, your business cards—the options go on and on.
Ask nicely. Craft your message so that it’s clear, but not offensive. You want to make the ask in a way that motivates a response. One good approach to this is explaining why you are asking. Here’s a copy sample that might fit the bill: “Our business grows primarily through referrals from our satisfied customers. If you are happy with our work, please tell your friends and colleagues.”
Say thank you. If a customer does take you up on this request, respond quickly with a thank-you note. Should you give them a thank-you gift? This is a tough question, since many enterprises have strict controls on employee acceptance of gratuities. Generally, I advise against a gift. But a warmly worded personal note has enormous impact.
Follow up, and say thank you again. Don’t go into the referral-request business if you don’t have a solid lead management system in place. There’s nothing worse than incurring a favor and then squandering it. The prospect will need to be qualified and nurtured, as with any other lead. Once the business closes, be sure to let the referring party know, and express your thanks again.
So get out there and get your share of referral business. And if you have other ideas on how to get more value from referral marketing, please share!
Ruth P. Stevens consults on customer acquisition and retention, teaches marketing at Columbia Business School. She is a director of BIIA and a contributing editor on the subjects of B2B marketing and eMarketing Strategy. www.ruthstevens.com