Referrals and Word of Mouth Marketing

Greetings!

Did you see my ad during the Super Bowl? You didn't! That's OK. I didn't run one. 

Instead I decided to invest my promotional efforts much more wisely this week: referral and word-of-mouth marketing. We'll look at how we ALL can get more business from this powerful, and incredibly low-investment/high return strategy. 

I was watching CNN clips of the presidential candidates campaigning in New Hampshire, and saw George W. Bush shake the hand of a supporter, saying, "I'll appreciate your vote, and please bring along a friend to vote for me too." 

It's a successfully proven concept: asking for referrals. Makes sense, doesn't it? Yet, how many of us do it as often as we should? I don't see too many arms going up out there. 

In my book, "How to Sell More in Less Time, With No Rejection, Using Common Sense Telephone Techniques, Volume 1," I cite a study done by the Securities Industry Association showing that 86% of surveyed customers would refer their broker to their friends, yet only 12% had ever been ASKED. Another study found that a referral is up to 15 times more likely to do business with you than a cold prospect. 

There are a variety of ways to use referral marketing and selling. For example,

• Get a name from someone else and you contact them.

• Have someone else contact a prospect and let them know you will call.

• Have someone else refer prospects to you every time they encounter a person who could use what you sell.

• The Ideal: Have someone else contact a prospect and sell for you. Also referred to as "word of mouth" marketing and selling, it's usually the least expensive and most productive form of lead and new business acquisition you can get.

ASK THE RIGHT PEOPLE, AT THE RIGHT TIME

A life insurance sales rep called me, gave a horrible opening ("I'm with ____ insurance, and would like to schedule a time to get together with you to discuss your life insurance. Would two or four o'clock be better on Tuesday?") After telling him I wasn't interested, he said, "I see. Do you have any friends I could contact?" 

I answered that with about the same enthusiasm as I would an IRS agent saying, "So, do you have any friends I can audit?" 

So who IS the right person, and when is the right time? Common sense--and experience--tells me it's someone who just bought from you, or complimented you on your products or services. They're in a frame of mind where they're thinking about how good you are, and how they gained from what you provide. Be on the lookout for, and seize the opportunities you might encounter every day. 

ASK THE RIGHT WAY

Far too many reps say, "Do you know anyone else I could contact?" Instead, tie your request into the problem you just solved, the pain you eased, or the result you helped them achieve. For example, "Pat, I'm glad you were able to cut down on wasted interest expense by using our system. By the way, who else do you know, who also is experiencing a similar problem, that might be able to also benefit from a system like this?" Now you're putting them in the position of HELPING a friend, instead of sending a salesperson after them. 

REMIND THEM OF POSSIBLE PROSPECTS

If they're coming up empty, give suggestions, "... someone in your trade group, country club, perhaps a similar business you don't compete with...?" 

USE REVERSE REFERRALS

Often you have highly-coveted prospects that you would love to soften up before contacting. Comb your customer base and ask them if they know the prospects, and if so, if they could help you. For example, "By the way, I've identified several members of your condo association as people we could likely help in much the same way we helped you. Would you happen to know Joe Jones or Karen Holden?" 

ASK WHY THEY'RE A GOOD PROSPECT

Say to your source, "Tell me about them," after they've given you the referral. They'll give you great info, and sell YOU on why the prospect should buy from you. 

MAKE IT EASY FOR PEOPLE TO SEND YOU REFERRALS

Send out stacks of your cards to your sources. Ask them to put you in their contact management program. Instead of your company name, just have them put the description of what you do into their program or Rolodex... under "Loan Acceleration," for example, so they can just type that in and your name will come up when they're looking for it.

ASK OTHERS TO SELL FOR YOU

Any time someone volunteers, "I know of someone who could really use you...", don't just get the prospect's name and number. Ask the source to contact them for you. After all, they felt strongly enough about what you do to think of the prospect, why not ask them to take it a step further? 

Small business expert Mark LeBlanc, author of "Growing Your Business: What You Need to Know, What You Need to Do," suggests formalizing this process. He says you should brainstorm a list of the 25 people in your life who are in a position to make the greatest impact on your business or sales. Never be out of contact with these advocates more than 30 days at a time. Call, email, mail, fax, send trinkets, articles, newsletters ... anything of value to keep your name in front of them, and to keep them referring you to others.

BE CREATIVE, THINK BIG

If the 80/20 rule applies, and it usually does (80% of your business coming from 20% of your customers), it makes sense that you want to get more customers just like your most profitable ones. So target them for referrals. While the sales rep in the cubicle next door is banging his head against his computer monitor, hearing no after no from the icy cold, stale reader response cards he's working, you could be mining gold from a directory list of fellow members of the association your best customer belongs to, and they're expecting your call! Ask your best customer if she would mind drafting a testimonial letter singing your praises, mentioning how your company helped her, and how she highly recommends they also work with you. (Even offer to write the letter to make it easier for her.) Does it work? Like a charm, every day for those with the desire and big-mindedness to try. 

THANK YOUR SOURCE

As the saying goes, what gets rewarded, gets repeated. You don't want your referral source to dry up on you, you want them sending you business EVERY TIME a situation arises that would be good for you, and the person they are thinking of. Therefore, reward your source for a referral. It can be as inexpensive as a thank you note, or something material. 

OK, here's what we're looking for this week.

I challenge you to ask for, get and work as many referrals as you can this week. Use these ideas, invest in some referral resources... just be sure you do SOMETHING.

QUOTE OF THE WEEK

"Learn as if you were going to live forever. Live as if you were going to die tomorrow." Unknown

Go and have your best, most referralest (save your e-mails; I know that's not a word) week ever!

Art

Reprinted with permission from Art Sobczak's "TelE-Sales Hot Tips of the Week."
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