[powerpress]
“I have a huge customer base…and haven’t asked for referrals, but they love the product, what does our transition sound like before we go into the referral conversation.”
Thanks to listener Keri for this great question. Let’s dig in.
So let’s talk about referral strategy. We haven’t talked about this in a long time. And why is that? Well, it’s just not something that gets talked about. Many people ask me about how to do well in booths, or approach a stranger, or schedule with a neighbor. I don’t understand why people don’t talk about actively pursuing referrals.
While network marketers are running around like crazy always trying to find new prospects, the Cutco people are super chill thinking, oh shoot, which ones should I call since I have so many?
Let me tell you a story about college. I started selling Cutco between my junior and senior year of college. I lived in Orange County, and went to college in San Diego. I was not going to drive up to Orange County just to work, so I needed to operate in San Diego. Here is what I did. Every appointment I had, I would ask for referrals. Once they would give me the 10 or so names (no, I’m not kidding), I would specifically ask for a few more, that lived in San Diego. I don’t remember getting that many, but I was able to get one appointment my first week back at school. That one appointment gave me 15 names. Which led to 4 appointments. Which led to 60 names. By the time I graduated I literally had hundreds of people I would never call.
I cover exactly what to say regarding referrals back in episode 14, and in my program, Your Direct Sales Foundation.
I even share that And as Dale Carnegie has noted, 91 percent of customers said they’d give referrals when prompted to do so, yet only 11 percent of salespeople ask for them.
But what are the real benefits of getting a tons of referrals?
1. They are free- instead of paying for leads you could just spend an extra 2 minutes and ask for some referrals.
2. They convert higher, especially with a testimonial. Here is a pro tip: get written testimonials from as many customers as you can. Once they give you referrals, you can read the testimonial from the person they know and watch your closing percentage and average order skyrocket.
3. Once you master this, you will be able to teach your team. I guarantee you will have someone who wants to do this business but is very resistant to selling to people they know, or might be new to the area. Referrals are the key to retaining this person.
Back to the question, what does the transition look like for customers you already have?
Your approach will be built on a couple of things. First, all of your customers are sitting on referrals but they are busy and it’s not their job to seek you out. Second, your customers don’t know exactly what you are looking for, or what you will do so you must spell it out for them.
There are five keys in approaching your customers for referrals after the fact. And this is a little different (although not much) then asking for the first time once the sale is made.
1. Acknowledge you are calling out of the blue if that’s the case.
This states the obvious and makes them more comfortable and interested in what you have to say. You can also apologize profusely for not offering your support to their friends and family from the very beginning and that you are trying to make it right. It’s true, you should be sorry. 😉
2. Let them know that you just created a new program for them to earn free product.
This will get their attention and it’s a clear what’s in it for them. Have a plan before you go in. If you are just starting with this, I recommend something simple like giving them a free thing that costs you $5 (but the value for them feels amazing) for 5 referrals.
3. Create an “everyone’s doing it” atmosphere since this increases trust.
Everyone is sitting on referrals. You can explain that the reason you created this program is that you realized that everyone has people where it’s come up in conversation and they need help. But the customers don’t have the tools to help. It also helps to ask for a specific number.
4. Remove pressure
Let them know exactly what you will do with the name. That is what they are worried about, right? Tell them you will reach out to them, offer to help them navigate their situation and the products. If they see something they like, great, if not, no worries. Tell your customer that you will reach out a few times and if they don’t want to chat further, you won’t pursue it further.
5. Ask directly for the contact info
No guts no glory. Just like you have to ask for the order to get the sale, you have to ask for the contact info to get it. Simply ask, “what is the best way to reach this person?” and wait.
Want to hear it all together?
Hi Batgirl, I know I’m calling out of the blue. How the heck are you? Great! I wanted to make sure you were one of the first to know about this cool little incentive program I have for you where you can earn free (whatever) and it doesn’t require you to have a minimum order or anything like that. Would you like to hear about it? Great! One thing that I have recently realized is that almost all of my customers know people that need to learn more about the products but they aren’t really equipped to explain them. And they are busy so they aren’t always reaching out. I don’t know if you know this, but I only meet with people I know, or people who have been referred to me. And I’m always working hard to get the word out, whether they buy or not. My ideal person is someone who… (describe 2-3 characteristics to help). Who like that comes to mind? Or people where it’s come up in conversation and you know they would appreciate learning more? Only 5 will get you that free _______. (then be quiet and wait) Ok great, who else? Who else? I’ll reach out to them real quick and see if they would like to chat. If they don’t I won’t call again, I’m not a glutton for punishment. What is the best way to reach them? Thank you so much! I’ll definitely let you know how it goes and be sure to get that free thing in the mail asap. How else are things going for you and your family?
That should do it. When you are measuring success make sure you hit all five points I mentioned today and shoot for about half of the people you speak with to give you some referrals. The more you do this, the more confident you will be which will also make your results better. I also recommend to teach this to your team so they don’t run out of people to contact either.
That’s it for this week. If you like this podcast, be sure to subscribe via iTunes or Stitcher and share with a friend. Talk to you next week!