Client referrals are a powerful business growth strategy. I mean, all you got to do
is ask your clients to recommend you to people they know.
How hard could it be?
Well, hard. In fact, really, really hard.
So if the idea of asking for a client referral scares
you even just a little bit, you're not alone.
But don't worry, I got you covered.
In this video, I'm going to share a step by step guide
to ask your clients for a referral and get them to say yes. So sit tight.
I'll be right back.
Welcome back, Heroes.
Thank you for joining me.
I'm Warwick Brown, founder at Account Manager Tips, host at The KAM Club
and on a mission to help busy key account managers get results.
Now, this video, was suggested by Savannah Caulfield,
who wanted a deep dive on client referrals.
So, you know, make sure that you leave a comment below
and add to the conversation, because you never know
when it might inspire a video and hey, thanks Savannah.
Why are client referrals important?
Well, if you're not asking
your clients for referrals, you're missing out on a huge opportunity.
Getting clients to recommend you
is a cheap way to attract qualified leads that are a great fit for your business.
And instead of, you know, you telling prospects how great you are,
it's your clients waxing lyrical about how reliable you are,
how trustworthy you are, the excellent service you provide.
Don't . Stop. You're embarrassing me.
Need some convincing? Well, here are some stats.
84 percent of B2B decision makers start the buying process with
a referral. Referral
leads convert 30 percent better than other leads.
Sixty one percent of customers make at least one referral and referred
customers have a 16 percent higher lifetime value.
Now, B2C companies may have formal referral programs
in place and sharing tools to incentivize word of mouth.
So think of those tell a friend and you'll both get a discount
on your next purchase type things. You see them all the time.
But for B2B companies, well, it falls to sales
and key account managers just like us. And guess what?
Most of us are terrified.
Now, fear of asking for referrals is common.
Despite their effectiveness at lead generation.
We just don't like to ask for referrals.
Sales Insights Lab surveyed 400 salespeople and found out around
60 percent of respondents asked for less than one referral per month.
On average, around 40 per cent rarely, if ever, asked for a referral.
And under 20 percent asked every person that they were in front of.
So why is that? Well, it's complicated.
Think about the last time you asked for a referral.
Did you feel shy or, you know, unconfident?
Did you not want to feel obligated?
Maybe it felt, you know, salesy or cheezy.
Maybe you felt like you were begging or you didn't want to ask for help.
Maybe you felt like you're being a pest or you're intimidated by the person
that you were asking or you just felt out of your depth,
your comfort zone or your level of expertize?
So, yeah, you know, when your boss says, hey, just go ask around for some referrals
it's not as simple as just saying, hey, can you think of anybody, you know?
And most of us haven't had much training on how to ask either.
So if you feel even
the slightest twinge of anxiety about asking for a referral, it's OK.
In fact, it's normal.
So let's improve your confidence
and increase your chances of a successful referral. Sound good?
Step one, decide who you ask for a referral.
Now, who do you have good customer relationships with?
Because happy customers will be happy to refer you.
So make a shortlist of those you know, who've had a positive experience.
But be selective.
Because when you ask, it's not just going to be for a name,
it'll be for an introduction and maybe even a recommendation.
So to find the people most likely to give you a referral, create
a target list of names with these qualities in common. Value.
Those people that you've demonstrated you can improve their situation. Trust.
Those people that believe
you're reliable and capable of delivering on your promises.
Authority. People that have the relationships and influence
you need to gain an introduction. Target market.
You know, those people
that know who you serve and the problems that you solve. Solution.
People who understand how your products and services work. Reputation.
Those are people that believe you're a market leader,
now it doesn't have to be size, but it could be quality or innovation
or some other quality or factor that makes you credible.
Reciprocity. You've recommended them to other people in your network. And life.
You know, maybe there are some personal or professional factors
from which your client can benefit?
Next, who on that list can introduce you to promising leads?
And there's going to be two types. Internal referrals.
So scan your client's organization chart for influential people and decision makers
and see how they might be connected through reporting lines.
But remember, reporting lines don't tell the whole story.
It might surprise you to see the influence that some people have
despite their titles.
So consider those informal networks as well.
And then there'll be external networks.
So search your contacts LinkedIn first level connections
for potential leads, because, you know, if they don't know them on LinkedIn,
they certainly won't know them well enough to make an introduction. Step 2.
Ask your client for a referral.
You know who to ask, let's discuss how.
Make sure that you ask in person.
A verbal request leads to referrals 32 percent of the time.
But email is successful only 17 percent of the time.
Now, remember, you're asking for a favor and your client may take some convincing.
So it's best to ask in person (phone,meeting, Zoom)
where it's going to be easier to do some persuading. Now be direct.
Don't beat around the bush.
Now, when you ask, make it clear and specific and get to the point.
I'm not saying be blunt. You know, tell me who you know.
But certainly don't be wishy washy either like um or
I may be., if you could look at this, would you maybe try and no.
Use open ended questions.
Tell them that, yes,
they do know somebody and you just need to figure out together who it is.
Solve problems or improve results.
Now, you want to talk about the issues that you solve or the results
that you're going to get for the person they referring to. So.
Who do you know that would like to get X results by doing Y, just like you did?
Make your connection look good.
Framed the request in a way that's going to create mutual value.
Show them what's in it for them.
Consider the power dynamics.
Now, asking for a referral is like borrowed trust.
Your contact is going out on a limb for you.
So make sure they know it's OK to say no.
Follow up by email after your client agrees to make a referral.
Follow up with an email introduction that they can just forward on your behalf
or copy and paste into an email.
Don't let them write it for you if they don't have to.
Share useful resources.
Have a library of value centered resources and email templates ready to send.
You can drip this information to your newly acquired contacts
after the introduction has been made.
Don't let that referral go cold.
You've worked hard to get it just because you run out of things to say.
Now, I do have a bunch of examples scripts which you can check out of the companion
blog post, which is at amtip.co/referral or, you know, check out the links
in the description below.
Step three, avoid common mistakes when asking for referrals.
A lot of mistakes
you can make when asking for referrals that will end up in a no instead of a yes.
So let's run through a few. So you don't make them.
The number one biggest one that you can
make is to ask anybody who breathes if they'll give you a referral.
Qualify your referrers just like you would any other lead.
Only ask those people to whom you've delivered value, that trust you
and that believe in your solution. Making it sound like it's a favor.
Don't act like it's a big deal.
Asking for a referral is nothing to be ashamed of.
In fact, you're doing them a favor.
Remember, you're offering
to help people in their network get better results faster. That is all.
So don't be shy. Waiting too long.
You know, if you've completed a successful project,
if you've just closed out a great implementation,
if you've had a fantastic quarterly business
review - strike while the iron is hot.
If you delay asking for a referral, the moment may pass.
And all because you didn't want to seem too pushy. Asking once.
Now, people often do know somebody, but, you know, maybe they
they don't feel comfortable yet or they just plain forgot.
Things also changedthroughout the year too. Clients talk to their network.
They meet new people all the time. Don't miss opportunities for referrals.
Make it a habit to check in on a regular basis
with anybody who said no in the past.
In fact, while you're at it, check in with the people that said yes too.
Not practicing. Now, confidence comes with repetition and refinement.
Create those practice opportunities and develop your referral request toolkit.
Not explaining your value.
So describe what you do and how it can help in a way that captures attention.
You want your referrer to be able to repeat it
when somebody else is not around, because, you know, you're not their shadow.
You're not there 24/7.
Not adapting your language.
Now, are you using too many technical terms or maybe not enough?
Should your message be formal or informal?
Adapt your message and style depending on your audience,
so that they're not overwhelmed or confused.
This is a big one that happens a lot.
You don't believe in the product.
Now, if you don't believe it, your client sure won't So make sure
that you have complete confidence in your solution and the value it creates.
If you don't, well, you better get some confidence
and do some more research to develop those positive beliefs.
Asking only your top clients.
Expand your pool of reference to include more clients
if you're not getting traction.
In research by Amplitude, the top 10 per cent of customers
made up 54 percent of referrals and those led to six per cent of deals.
You let objections stop you.
You know, don't say, okay, when your client says I don't give referrals.
Instead, try to understand their reluctance.
Maybe they just had a bad experience before?
Now, speaking of objections, let's talk about how to deal with rejection.
So you put yourself out there, you asked your client for a referral.
Now the waiting game begins.
You're feeling very, very vulnerable and full of full of regrets.
And then the answer comes in and it's no. Awkward.
Well, look, here's how to get over it. Prepare.
Expect to hear the word no.
So it doesn't surprise you and throw you off.
So my grandma used to say, expect the worst and you're never disappointed.
Acknowledge. Don't get defensive.
They're allowed to say no. We've already established that.
Acknowledge and reassure your contact.
It's okay. Clarify. So seek feedback on why.
Is there more information
your client may need to be more comfortable making a referral?
Is there any constraints that you're not aware? Expand.
Is there anybody else you should include in conversation?
Maybe the referral isn't your contacts to make?
Maybe it belongs to somebody else.
Credibility. Show, don't tell.
Share client success stories
that prove you can deliver on any promises you make about results.
How about repositioning?
You know, take time out, revisit your introduction pitch.
It might need a few more tweaks to be more persuasive.
Resubmit either to the initial contact or somebody else.
And develop a referral mindset.
Get into the habit of asking for referrals.
Practice makes perfect.
And it's going to help you overcome any fears.
If you're a member of The KAM Club,
you can take the client referral readiness, self-assessment
and find out just how primed you are to ask for a client referral.
And if you're not a member of The KAM Club, what are you waiting for?
The KAM Club is the fastest growing global community of key account managers.
Inside, you're going to find tools, templates, guides, training, coaching
and a connected community all there to help you get results.
That's where I hang out. Learn more at amtip.co/kamclub.
If you want to dig even deeper, here are some fantastic books I recommend,
and I'll put links to all of these in the description below
if you want to check it out. Follow up and close the sale.
The fortune is in the follow up, and this book lays out a complete strategy
along with scripts to help you nurture your pipeline and close those deals.
Perfect phrases for sales referrals.
So if asking clients for a referral makes you sweat a little, this is a great book
with literally hundreds of example phrases you can use to help get new clients
and build relationships. Beyond referrals.
This is a really practical guide on how to leverage your relationships
with existing clients to get referrals and convert them into new clients.
Let's wrap this up, Heroes.
Your existing clients represent an outstanding opportunity
to grow your business through word of mouth.
But sometimes they need a little coaxing to share the good news.
The secret to securing a referral is to develop your own system, to identify
the right people, to ask.
Build a library of scripts and resources to help you engage with the referrer
and the referee.
Prepare in advance of asking for a referral
so you avoid common mistakes that end up in no.
Anticipate objections or rejections and how you'll respond to them.
Build your confidence
through practice and always remember that a referral is not asking
who you can sell to, but who you can help.
All right, Heroes,
let me know in the comments your advice on how to ask for a referral.
Any tips you have to share? I'd love to hear from you.
All the links to everything I discussed is in the description.
Don't forget to like share and subscribe. I mean, you're already here, right?
What have you got to lose?
And if you want to keep watching, I can recommend this video
on the right questions to ask your client to get to know them.
All right. Until next time. Bye for now.