The following blog contribution is from Darren Bosch at DeliberateU.
E
very company will benefit from more referrals to grow its business sustainably. Why? Because referrals create ideal prospects who convert better, close faster, are more profitable, have higher lifetime value… and refer others just like them.
But how do we operationalize an effective Referral Program that serves our clients well while delivering results?
Previously we outlined the critical elements and successful steps for your Formalized Referral Program. It also included an easy, free Tool to help you execute.
Feedback we received included two main inquiries:
- Who should be asking for referrals in our business?
- What does this look like in a B2B organization (business-to-business), rather than a B2C (business-to-customer)?
WHO DOES IT?
Who is best positioned in your business to ask for the referral? We’ve seen many clients try to execute on the Referral Program only to deliver sub-par results. Why? Because all too often they are trying to maneuver the most efficient way versus the most effective way.
Always follow the closest, most trusted relationship. That means, have the person who has the best rapport and relationship with your client execute on your Referral Program… preferably face-to-face. Typically that is the person who’s had the longest relationship in your sales and services-rendered process. Why?
People are glad to refer those whom they love & trust because:
- They trust you personally
- You’ve made a connection with them that triggers a positive emotion
- You've reduced their risk, providing them ease, confidence and security
- You've made it easy for them to act on that emotion
It all hinges on a trusting relationship – where you’ve consistently delivered a remarkable experience.
Further, this isn’t something you just pass off to someone on your team without proper training, hoping they will figure it out. This is a trained and rehearsed process that you implement with every customer who buys from you.
SOURCE: EDELMAN TRUST BAROMETER
HOW DO B2B BUSINESSES DO IT?
In our last blog we looked at 4 different Referral approaches, primarily for B2C organizations. Now let’s look at how this applies in a B2B type business, as the landscape has clear differences.
What makes a B2B Referral Program different than a B2C?
- Lifetime value of the customer: the right B2B customer can be highly valuable and may purchase from you in high volume for years to come. It is worth taking the time to calculate their lifetime value
- Multi-level organizational structures: it can be hard to find the right person, never mind get a meaningful conversation with them. So a common hurdle is to get past a gatekeeper, because their job is to shield the decision-maker from pesky sales people
SOURCE: EDELMAN TRUST BAROMETER
KEYS TO B2B REFERRALS
1. Be a Problem Solver
- You’re positioning yourself as a problem solver, not a seller
- Ask for a warm introduction to someone who may share a similar pain – in order to share your value-added solution to a specific problem that is high-value for them
- Upon contact, you’re simply looking for the next small advance. (e.g. next conversation/next step). Bring them:
- a remedy to a problem you know they have
- proof with a Success Story (e.g. Video Case Study) they can relate to and then envision
2. Have a Door-Opener
- Look for a first sale with a small, high-value service / product that removes a pain and saves them money. It needs to be priced competitively and be a low-risk, low-investment for them. In return you get a chance to have them experience your service and build credibility and trust
- Once you have a foot in the door and have successfully delivered the first solution, you can have an opportunity to introduce your other services
3. Community:
- Do your customers exist together only on a spreadsheet, or do you foster an environment in which they can learn, collaborate and make the coordination of “asks” and referrals easier?
A Spirit-guided, Christ-following Sales leader knows their purpose is to serve and add value to the lives of those who buy from them. They know it is not about getting people to do something they do not want to do.
I once was counselled, “I am not in sales, I am in life… if I can make your life better, let’s talk.” Just another reason why Sales is so beautiful! Jesus speaks clearly about our core mindset in Mark 10:45. I suggest that this mindset is the same for you and I as we look to selling smarter and with more integrity in our businesses.
