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(The Baum Group takes great pleasure in introducing Gary Lockwood, the most inspiring business coach we have had more fun with. Please welcome Gary and his article "Got Referrals?")
Ho-Hum. Another day at the office, waiting for a potential customer to call or come in.
What would your business be like if your current customers were enthusiastically rounding up prospective customers for you? Imagine the excitement of talking to people who already know about you and know about your products and services. How difficult would it be to close those sales?
Of course! Selling to those people would be a piece of cake. So why aren't your current customers bringing you referrals? Perhaps it's because you have not instructed them, motivated them, made it easy for them, asked them or initiated the process.
Like most worthwhile endeavors, getting referrals requires planning and preparation.
Next, scan the list for the handful of your best current referrers. Chances are, you have a few people who routinely recommend prospective customers to you. Perhaps you also send referrals to them. Start with these potential "Referral Partners". Almost always, you'll have better results by developing stronger relationships with a few referral sources rather than shallow relationships with lots of sources.
In order to help your Referral Partners give you good, qualified referrals, you need to get crystal-clear about what you are looking for. What types of people/organizations make the best customers for you? Are there any geographic limitations? How about size or volume requirements?
What problems do your products and services solve? Your Referral Partner will have an easier time of spotting potential clients for you if they (and you) are clear about what symptoms to look for. This also makes it very natural for your Referral Partner to suggest your firm as a way for their colleague to solve a problem.
Don't overlook the desired personal characteristics of potential customers. As you know, the chemistry you have with a customer is a crucial factor in establishing a long-term business relationship. Have you ever noticed that some people make you feel good just to be around them? These are the people who give you energy when they are near you.
On the other hand, there are probably others you can think of who just drain all the life out of you. Which would you rather have as clients? You can surround yourself with people who are pleasant, easy to deal with, interesting and, oh yes, profitable.
When you are clear about describing the recommendations you want, you make it easier for your Referral Partners to identify prospective customers for you.
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