The average person knows about 250 people. So every time you meet a new person and develop a genuine relationship with them, there is the potential that they can link you with a range of new prospects. But how do you go about developing a referral network that will convert into actual new business? In this month’s article, we look at how to build referrals, maintain your referral network to encourage repeat business, and reward your referrers for their efforts.
How to build referrals
At the core of every successful business relationship, whether it is with employees, suppliers, clients or potential clients, is trust. Don’t expect every potential referral source you meet to willingly hand over their contact list to you – names, phone numbers and all. You must first establish a relationship based upon how you can help your new contact, not the other way around. Asking a few ‘feel good’ questions is the perfect way to build rapport with a potential referral source, for example:
1. How did you get started in the XYZ business?
2. What do you enjoy most about what you do?
You can see that these questions will not only show your new contact that you have an interest in what they do, but will give you an insight into how (if at all) you can potentially cultivate a successful referral relationship. You will also stand out as being different to all of the other people who are only interested in talking about their own business in the hope that they will receive an instant referral (good luck to them!).
Once you have got into the rhythm of things and feel that the timing is right, I recommend asking one key questions as the next step. That is:
“How can I know if someone I am speaking with is a good prospect for you?”
Again, this builds trust and credibility and establishes you as someone who is genuinely interested in helping your contact to develop his or her business. Plus, it has the added bonus of opening up the channels of communication between you and your contact, which often leads to a reciprocal, mutually beneficial referral relationship.
Whilst this all may seem a little contrived, the point is not about sticking to a particular script or formula, but rather building relationships with potential referral sources that are based on trust and a genuine desire to help them first.
Keeping it going
It’s no secret that building a network of high-quality referrals isn’t easy. It takes time and effort to meet new people, think of how you can work with them, and put them in touch with potential clients. So don’t waste all of your hard work by neglecting to maintain the relationship through regular, appropriate contact. Call your contact to see whether your referral turned into business, invite them to a business event of interest to them, or think of other ways that you can keep the relationship going (as long as it’s worthwhile). Your efforts will be recognised, appreciated and rewarded with a list of high-quality prospects for your own business.
Encouraging repeat referrals
Once you’ve got that first referral, don’t forget to thank you referrer for the business! And if it’s suited to your corporate brand and appropriate to your relationship, don’t be afraid to be creative by giving a ‘thank you’ that is a little different. If that’s too adventurous for you or would be considered inappropriate, a phone call, hand written note on quality stationery, a nice bottle of wine or tickets to a show or sporting match are all legitimate ways to show your contact that you genuinely appreciate their referral. Some businesses also establish referral programs that reward existing clients or customers for ‘word of mouth’ referrals through giving them gift vouchers, discounts or other rewards – consider whether this may work for your business.
If you would like further information or help with establishing your referral network, please contact me on 07 3899 8335 or email megan@marketsavvvy.com.au .
Best wishes – Megan.