About Me
- Chris Ripley
- Title Marketing That Works, a division of the Strategic Marketing Group. 11668 Cygnet Drive Waldorf, MD 20601 301-638-4755 cripley@smg2.com www.smg2.com
Go Sox!
Chris Ripley in Ft. Meyers...
Monday, November 09, 2009
5 Reasons You're Not Getting The Referrals You Want
Virtually every professional has learned that generating referrals from clients and prospects is a key to success, yet surveys indicate that less than 15% of all salespeople and professionals generate enough referrals to impact their business. Traditional trainers have taught us to "do a good job and ask for referrals."
But by using the traditional approach, the typical professional services business will only get an occasional "referral" or two, and these tend to be just names and phone numbers, rather than qualified prospects. Even worse, this "do a good job and ask for referrals" approach creates five problems:
1. The Client Is Not Prepared To Give Referrals
By waiting until the service is complete and then asking for referrals, your client has not had an opportunity to prepare for your request. To the client, the request comes from out of the blue. When you approach your client with your request without giving him an opportunity to think about it, you put him on the spot. You are giving him only a few seconds to go through his mental file cabinet.
2. The Client Does Not Know What You Need
It may seem obvious to you, but your client has little idea of what makes a good referral for you, even if she takes a few seconds to think about it. You assume that because your practice involves a number of services for small to mid-size businesses, from management consulting, to tax preparation, to financial analysis, your client is immediately going to think, "What other companies do I know or do I do business with that might need Toms' advice and expertise?" Wrong assumption. What she actually thinks is "what does this person want from me?"
3. Your Client Does Not Have A Reason To Give Referrals
We assume that if we have done a good job, the client will like and respect us and be willing to give us referrals. Again, this is far from the case. Most clients will not give quality referrals just because they like you or because you have done a good job for them. They need a reason to give you referrals. They need to understand why it is in their best interest to give you referrals.
Clients assume that whomever they refer you to will be more demanding and critical they have been. When a client gives a referral, he is putting his reputation and image on the line with the person to whom he is referring to you. He is concerned about what his friend or acquaintance is going to think of his and his judgment, particularly if you mess up.
4. The Client Doesn't Have An Objective Standard To Measure Your Performance
The traditional referral generation method does not give the client an objective standard by which to measure the quality of your performance. You and your client may "feel" you have done a good job, but when you ask for referrals, they begin to think back over the process more critically and question whether you have really performed up to standards they believe others would find acceptable.
If the two of you agree up-front on exactly what you need to do in order to "do a good job," the client will have an objective basis to decide if she trusts you enough and if you have performed well enough to earn the right to be sent to people she really knows well and respects.
5. Most People Don't Ask For Referrals
Finally, from tracking the responses of the attendees of my seminars, it appears a majority of professionals do not ask for referrals--rather they suggest them.
Instead of asking a direct question seeking referrals such as, "John, what other business owners do you know that I may be able help solve some crucial issues?" the typical professional will make a weak suggestion such as, "John, if you happen to know someone I can help would you mind letting me know?" Or, "John, if you run across someone, who could use my services, would mind giving them my card?" Rather than a request for referrals, these are throwaway sentences, quickly forgotten by most clients.
Traditional referral training is inherently unfair to you and your client. It does not give you the tools needed to successfully work with your client to generate quality referrals, and it gives your client neither a reason to give referrals, nor a chance to become comfortable referring you to people they know and respect.
Generate The Referrals You Want
Yet, it is possible to generate a very large number of high quality referrals from your clients. You need to have a referral generation process that:
• Informs your client ahead of time that you will ask for referrals
• Lets the client know what your definition of a referral
• Educates your client on why providing referrals is in their best interests
• Provides an agreed upon objective criteria to determine your performance
By forming a process where you eliminate the problems associated with the traditional referral generating method, you will increase not only the number of referrals you receive from your clients, but also the quality of each referral.
Virtually every professional has learned that generating referrals from clients and prospects is a key to success, yet surveys indicate that less than 15% of all salespeople and professionals generate enough referrals to impact their business. Traditional trainers have taught us to "do a good job and ask for referrals."
But by using the traditional approach, the typical professional services business will only get an occasional "referral" or two, and these tend to be just names and phone numbers, rather than qualified prospects. Even worse, this "do a good job and ask for referrals" approach creates five problems:
1. The Client Is Not Prepared To Give Referrals
By waiting until the service is complete and then asking for referrals, your client has not had an opportunity to prepare for your request. To the client, the request comes from out of the blue. When you approach your client with your request without giving him an opportunity to think about it, you put him on the spot. You are giving him only a few seconds to go through his mental file cabinet.
2. The Client Does Not Know What You Need
It may seem obvious to you, but your client has little idea of what makes a good referral for you, even if she takes a few seconds to think about it. You assume that because your practice involves a number of services for small to mid-size businesses, from management consulting, to tax preparation, to financial analysis, your client is immediately going to think, "What other companies do I know or do I do business with that might need Toms' advice and expertise?" Wrong assumption. What she actually thinks is "what does this person want from me?"
3. Your Client Does Not Have A Reason To Give Referrals
We assume that if we have done a good job, the client will like and respect us and be willing to give us referrals. Again, this is far from the case. Most clients will not give quality referrals just because they like you or because you have done a good job for them. They need a reason to give you referrals. They need to understand why it is in their best interest to give you referrals.
Clients assume that whomever they refer you to will be more demanding and critical they have been. When a client gives a referral, he is putting his reputation and image on the line with the person to whom he is referring to you. He is concerned about what his friend or acquaintance is going to think of his and his judgment, particularly if you mess up.
4. The Client Doesn't Have An Objective Standard To Measure Your Performance
The traditional referral generation method does not give the client an objective standard by which to measure the quality of your performance. You and your client may "feel" you have done a good job, but when you ask for referrals, they begin to think back over the process more critically and question whether you have really performed up to standards they believe others would find acceptable.
If the two of you agree up-front on exactly what you need to do in order to "do a good job," the client will have an objective basis to decide if she trusts you enough and if you have performed well enough to earn the right to be sent to people she really knows well and respects.
5. Most People Don't Ask For Referrals
Finally, from tracking the responses of the attendees of my seminars, it appears a majority of professionals do not ask for referrals--rather they suggest them.
Instead of asking a direct question seeking referrals such as, "John, what other business owners do you know that I may be able help solve some crucial issues?" the typical professional will make a weak suggestion such as, "John, if you happen to know someone I can help would you mind letting me know?" Or, "John, if you run across someone, who could use my services, would mind giving them my card?" Rather than a request for referrals, these are throwaway sentences, quickly forgotten by most clients.
Traditional referral training is inherently unfair to you and your client. It does not give you the tools needed to successfully work with your client to generate quality referrals, and it gives your client neither a reason to give referrals, nor a chance to become comfortable referring you to people they know and respect.
Generate The Referrals You Want
Yet, it is possible to generate a very large number of high quality referrals from your clients. You need to have a referral generation process that:
• Informs your client ahead of time that you will ask for referrals
• Lets the client know what your definition of a referral
• Educates your client on why providing referrals is in their best interests
• Provides an agreed upon objective criteria to determine your performance
By forming a process where you eliminate the problems associated with the traditional referral generating method, you will increase not only the number of referrals you receive from your clients, but also the quality of each referral.
Friday, November 06, 2009
The 2 Step Method for Generating Referrals
What is the number one reason you don’t get enough referrals from your clients and prospects?
You don’t ask!
It’s that simple. You need to have a plan in place to regularly ask your clients and prospects for referrals to people who may enjoy receiving the same great service you provide to your clients or could provide to your prospects.
When should you ask for a referral? Don’t ask right after they sent you their first deal. Spend a few months thanking them for their business and developing a strong relationship with them through courtesy, kindness, honesty, and keeping your commitments. As Stephen Covey says, make deposits in their “Emotional Bank Account” and when the time comes to ask for a referral, you can make a withdrawal from this same account. I would recommend you wait 4-6 months after the first deal, when they client knows they can depend on you and will feel comfortable recommending you to someone that trusts them.
Should I ask prospects for referrals? Sure, why not? If you have been doing a great job of communicating on a regular basis with this prospect there is nothing wrong with asking “While I know you’re happy with your current title company, would you know of anyone else who may be interested in our title services?”. Chances of receiving a referral from this prospect may be small but this very act does something else for you that often goes neglected. It positions you as a savvy marketer who does everything you can to generate business.
Positioning or posturing sets you up in a positive light with your prospect. I often receive referrals from title companies to real estate agents or mortgage lenders who are impressed with the way the title company is able to keep in touch with them on a regular basis using our sales automation system. These people know the value of keeping in touch with your prospects and clients on a regular basis and they want to emulate this title company. Your top prospects will be impressed with your efforts and may give you a referral as well as maybe send you’re their next deal due to your efforts.
In the attached exhibits you will find a good example of a letter you can use to ask your clients and prospects for a referral. When you feel it appropriate to send (in our sales automation system we usually send it after 3-4 months of thank you letters). Rarely will someone fax or mail you back a referral. But the secret to this is the follow-up phone call (as is the secret with most tactics in our industry, the phone call is where you have the connection - just like getting people to come to your seminar that we discussed in the May issue). About a week after you send the letter, follow-up with a phone call.
The script for this call is relatively simple. Start off with some small talk. Then pop the question. For current clients ask them “if the know of anyone else who would benefit from receive the great service you receive form our company”. For prospects it’s “while I know you haven’t had a chance to experience our great service, would you know of anyone else who might benefit from giving us a try”.
Whether or not they give you a referral be sure to thank them for their business or the opportunity to talk to them. If they do provide you with a referral be sure to follow-up with a thank you letter (see included exhibits). I’ve also included an introductory letter you can use to send to the prospects you have been referred to by your client or prospect.
So what is your next step? Create a list of clients you think may be able to provide you with a referral. If you feel you have a positive balance in Covey’s “Emotional Bank Account” send them the request for referral letter right away. If not, start thanking them regularly for their business. This could be with letters, phone calls, or personal meetings. Make some deposits in their “Emotional Bank Account”. After you feel you’ve made enough deposits to warrant a withdrawal go for it. Send them the letter and start the process.
I look forward to hearing from some of you on your results of this simple and easy process. The business rewards will be great!
What is the number one reason you don’t get enough referrals from your clients and prospects?
You don’t ask!
It’s that simple. You need to have a plan in place to regularly ask your clients and prospects for referrals to people who may enjoy receiving the same great service you provide to your clients or could provide to your prospects.
When should you ask for a referral? Don’t ask right after they sent you their first deal. Spend a few months thanking them for their business and developing a strong relationship with them through courtesy, kindness, honesty, and keeping your commitments. As Stephen Covey says, make deposits in their “Emotional Bank Account” and when the time comes to ask for a referral, you can make a withdrawal from this same account. I would recommend you wait 4-6 months after the first deal, when they client knows they can depend on you and will feel comfortable recommending you to someone that trusts them.
Should I ask prospects for referrals? Sure, why not? If you have been doing a great job of communicating on a regular basis with this prospect there is nothing wrong with asking “While I know you’re happy with your current title company, would you know of anyone else who may be interested in our title services?”. Chances of receiving a referral from this prospect may be small but this very act does something else for you that often goes neglected. It positions you as a savvy marketer who does everything you can to generate business.
Positioning or posturing sets you up in a positive light with your prospect. I often receive referrals from title companies to real estate agents or mortgage lenders who are impressed with the way the title company is able to keep in touch with them on a regular basis using our sales automation system. These people know the value of keeping in touch with your prospects and clients on a regular basis and they want to emulate this title company. Your top prospects will be impressed with your efforts and may give you a referral as well as maybe send you’re their next deal due to your efforts.
In the attached exhibits you will find a good example of a letter you can use to ask your clients and prospects for a referral. When you feel it appropriate to send (in our sales automation system we usually send it after 3-4 months of thank you letters). Rarely will someone fax or mail you back a referral. But the secret to this is the follow-up phone call (as is the secret with most tactics in our industry, the phone call is where you have the connection - just like getting people to come to your seminar that we discussed in the May issue). About a week after you send the letter, follow-up with a phone call.
The script for this call is relatively simple. Start off with some small talk. Then pop the question. For current clients ask them “if the know of anyone else who would benefit from receive the great service you receive form our company”. For prospects it’s “while I know you haven’t had a chance to experience our great service, would you know of anyone else who might benefit from giving us a try”.
Whether or not they give you a referral be sure to thank them for their business or the opportunity to talk to them. If they do provide you with a referral be sure to follow-up with a thank you letter (see included exhibits). I’ve also included an introductory letter you can use to send to the prospects you have been referred to by your client or prospect.
So what is your next step? Create a list of clients you think may be able to provide you with a referral. If you feel you have a positive balance in Covey’s “Emotional Bank Account” send them the request for referral letter right away. If not, start thanking them regularly for their business. This could be with letters, phone calls, or personal meetings. Make some deposits in their “Emotional Bank Account”. After you feel you’ve made enough deposits to warrant a withdrawal go for it. Send them the letter and start the process.
I look forward to hearing from some of you on your results of this simple and easy process. The business rewards will be great!
Tuesday, November 03, 2009
Referrals and Testimonials - What Do Your Clients Really Think?
Do you have a healthy mix of referral business and self-generated business?
A little over four years ago I was completing my master’s degree. My master’s thesis was titled “Successful Real Estate Marketing Strategies and Tactics”. Since I was working with clients in the title industry, I thought it was important I thoroughly understood one of their main target markets. (if you would like a copy of my master’s thesis, just drop me an email and I’d be glad to send it to you. I also do a seminar for agents based on the thesis. I’ve presented to real estate agents and used the presentation as a lead generation tactic for title companies. Please feel free to contact me about doing the seminar for your prospects) I had had many one-on-one conversations with agents regarding their interactions with title companies; but I never had asked them about their marketing strategies and tactics. One of the most important things I learned during the research for the thesis (and confirmed by other research) was real estate agents receive 3/4 of their business from referrals. I’m sure this is no real news to you.
I’m sure if you have a successful title business you get a large majority of your business from referrals. In our recent survey of title company marketing strategies and tactics, title companies say they get over 80% of their business from referrals. This issue of our newsletter is devoted to maximizing the number of referrals you earn and how to use testimonial to help you with your marketing efforts.
Over the next few weeks in this blog I will highlight some referral strategies. Stay tuned.
Do you have a healthy mix of referral business and self-generated business?
A little over four years ago I was completing my master’s degree. My master’s thesis was titled “Successful Real Estate Marketing Strategies and Tactics”. Since I was working with clients in the title industry, I thought it was important I thoroughly understood one of their main target markets. (if you would like a copy of my master’s thesis, just drop me an email and I’d be glad to send it to you. I also do a seminar for agents based on the thesis. I’ve presented to real estate agents and used the presentation as a lead generation tactic for title companies. Please feel free to contact me about doing the seminar for your prospects) I had had many one-on-one conversations with agents regarding their interactions with title companies; but I never had asked them about their marketing strategies and tactics. One of the most important things I learned during the research for the thesis (and confirmed by other research) was real estate agents receive 3/4 of their business from referrals. I’m sure this is no real news to you.
I’m sure if you have a successful title business you get a large majority of your business from referrals. In our recent survey of title company marketing strategies and tactics, title companies say they get over 80% of their business from referrals. This issue of our newsletter is devoted to maximizing the number of referrals you earn and how to use testimonial to help you with your marketing efforts.
Over the next few weeks in this blog I will highlight some referral strategies. Stay tuned.
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