In an interesting article I read this week, Steli Efti asserts that the most valuable sales leads for any business are always right in front of you: your existing customers.
Referral selling is “simply asking your current customers to refer your product to another company.” Resisting the image of the traditional “sleezy” salesperson is vital for referral sales, because the referral is placed firmly upon the trust and customer service built by the salesperson and their existing customer. Without excellent salesperson-customer relations, customers would feel no desire to refer fellow customers to the salesperson.
The author argues that referral leads are the best leads for several reasons. First, your current customers will have a great knowledge of their field of business and will therefore provide the best leads for other businesses. Second, since the business transaction is initiated though a referral, the business deal is founded entirely on trust – trust between the salesperson and their return customer, and the return customer and the new customer. Trust is the most important thing in sales, so this is a great foot to start on.
The author also mentions that most salespeople are scared to ask for referrals because they don’t want to jeopardize the deal. Yet, the author believes the best time to ask for referrals is right after the deal is closed. In addition, the author recommends that the salesperson encourage the new client to thank the client who referred them, which could lead to more referrals.
In general, referrals are, in the author’s opinion, the very best way to get new business, and the process for doing so is easier and more productive than previously imagined.
BoweryJE22