Sales and Sales Management Blog

February 24, 2014

Looking to Grow Your Business? Learn How to Get Directly Introducted to Your Best Prospects

Whether you’re relatively new to sales or are a scarred, proven old pro, prospecting is a tough chore that we all must do otherwise we’ll quickly find ourselves out of business. 

And there are a great many ways to prospect, from cold calling to cold walking to networking to purchasing ads to social media to encouraging word of mouth referrals to the traditional asking for referrals from clients and friends.  Depending upon your industry and personality, some methods work better than others.

But in the end the object is to get in front of decision makers that are great prospects for you, that is, decision makers who need and can afford your product or service.

Like a great many sellers I was taught that after the sale I should ask my client for referrals to others they know that might be able to use my product or service.  And like a great many other sellers I discovered that asking for referrals in that manner simply didn’t produce much of value.  Sure, I’d get some names and phone numbers but most of the time they were either poor prospects or no prospects at all.

Over the years I’ve spoken to thousands of sellers who were taught the same referral generation process who have experienced the same disappointing results that I experienced.  Many continue to ask knowing that only a small portion of the names and phone numbers they get are of value, while many, many others have simply given up on referrals all together.

A few years ago I discovered a referral generation process that is far different than the traditional “do a good job and ask for referrals” process that most of us have been taught that produces so little return for so much time invested.  Rather than asking clients to do our prospecting for us, the process I discovered demands that we do the work for our client and instead of getting a name and phone number of someone who more than likely isn’t a real prospect for us, the process I use generates a direct introduction to my hand picked prospect. 

The process that I teach allows you to maintain complete control of the referral process, takes all the work off the client, doesn’t put the client in an awkward and uncomfortable position of feeling that they have to give a name and phone number, and gets you introduced directly to someone you know is a great prospect for you.

If you’d like to learn more about how to generate direct introductions to your hand picked prospects head over to LeadLifter as I just completed a 45 minute webinar for them that outlines the whole process.  You can listen to the webinar at your leisure and for free at the LeadLifter events page.

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February 25, 2013

Building Your Business on Referrals Pt 3: You Don’t Need Referrals, You Need Introductions

How often as a B2B seller have you been advised to ask your client for referrals?  If your experience is typical then you’ve heard that advice just about every time you turn around.

Most of us have had it pounded into our heads that we need to ask for referrals after the sale has been completed. We just need to do a good job for our client and then, after the sale, ask them if they know of anyone who could benefit from our products or services and we’ll easily and rapidly grow our business.

Depending upon the seller you ask, that referral question can take many different forms, such as:

“Ms. Client, who do you know that could use my products or services?”

“Mr. Client, who do you know that I should be talking to?”

“Mr. Client, who else do you know that I could help?”

“Ms. Client, if you happen to run across anyone else that I might be able to help, would you give them one of my cards?”

But no matter the specific language of the question we’ve been taught to ask, almost all of them have the same root problem that results in our receiving few high quality referrals: all of the questions most of us have been taught to ask require our client to do our work for us.

In virtually every case we are asking our client to come up with the name of someone they know who they believe could use our services—even though our client really doesn’t know who is a really strong prospect for us; even though our client doesn’t know all of our capabilities; and we’ve put them on the spot asking them to come up with a great referral for us with only a few seconds to think about it.

Not surprisingly most of the “referrals” we get—usually nothing more than the name and phone number—prove to be no more qualified than if we had thrown darts at the phonebook and are, thus, nothing more than time wasters.  Certainly one here and there turns into a client—but for most of us the pickings are pretty slim.

So if asking your client for a referral to someone they know who might need your products or services doesn’t work very well, is it possible to get a large number of high quality referrals from clients?

Yes, absolutely it is.

But instead of asking a weak question like “who do you know that might be able to use my products or services,” it makes far more sense for us to do the hard work of finding out who our client can refer by figuring out who our client knows that we know is a great prospect for us and then asking for a direct introduction to that person.

This method demands more than simply popping off a question at the end of the sale trying to get your client to do your work, but it is powerful because:

  • You are making it so easy for your client to give a great referral that all they have to do is say “yes”
  • You have relieved your client of an uncomfortable and often unwanted burden
  • You are far more likely to get a positive response from your client because instead of asking them to rummage around their mental file cabinet trying to figure out who to refer, you’re asking for a specific and easy to fulfill action—an introduction to someone they know
  • The introduction you get will be to a quality prospect because it will be to a prospect that you pick and that you know you want to be introduced to
  • You will have a much greater chance of setting an appointment with the prospect by being personally introduced by your client than if you just get their name and phone number and call them out of the blue
  • Over time, you can get multiple high quality introductions from each client. They become a never ending source of quality referrals by simply asking for additional specific introductions as you earn them

By investing the time and effort to do the detective work necessary to discover who your client knows that you know you want to be referred to you are not only taking the burden off your client, you’re making it so easy for your client to give you a great referral that the only thing they have to do is say “yes” when you ask.

Instead of relying on your client to come up with a top referral you’re insuring that the introduction you receive is one that you want to receive.

The primary issue now becomes how to discover who your client knows that you know you want to be referred to.  That issue demands developing some detective talents such as keen observation, listening, and analytical skills—skills that will be covered in part 4 of this series on referrals.

In addition to being able to uncover great introductions that your client can give you, the question you ask naturally changes.  Instead of asking your client to come up with a name and phone number, your question will now be geared toward confirming that the client knows your intended prospect and then moves on to asking for the introduction.

Depending upon the circumstances the request could look very much like this:

You: “Don, I’ve been trying to reach Janet Smith over at XYZ Company for some time and haven’t been able to connect and it occurred to me that you might know her.  Do you know Janet?”  (Of course since you’ve done your homework you have good reason to believe he knows her.)

Client: “Sure, I know Janet. Why?”

You:  “Great.  Would you be comfortable introducing me to her?”

If you have done your job well and earned your client’s trust and respect, there is an extremely high probability your client will readily agree to introduce you to Janet.  Instead of asking your client to do your work for you all he has had to do was say “yes.”

Although this process is most easily implemented by B2B sellers, it also works well for B2C sellers in situations where the seller has the opportunity to know their client very well.

Rather than asking your client to rack their brain and do your prospecting for you—something they are ill prepared to do—take the time and put in the effort to do the work for your client and you’ll turn introductions from clients into a major source of your new business.

Referrals—rather direct introductions–can be the cornerstone of your sales business if you learn to do a little detective work and make it easy for your clients to give the great referrals you’ve always wanted.

February 21, 2013

Building Your Business on Referrals Pt. 2: Asking for Referrals is Bad Practice

OK, I know, you’ve been told your entire life as a salesperson that you have to ask for referrals and that if you don’t you’ll fail.  But if you’re like most sellers you’ve asked and on occasion get a name and phone number of someone that turns into a new client, but most of the time the names and numbers you get are about as targeted as taking a dart and throwing blindly at the phone book.

The above situation is so common that a great many sellers simply stop asking, thinking that referrals are nothing more than sales mythology, while others, thinking they are the cause of the failure to generate significant numbers of quality referrals, continue to ask with little success and a growing sense of frustration and failure.

The reality isn’t that generating quality referrals are nothing more than a myth or that the seller himself is the root cause of referral generation failure.

Referral generation fails primarily because of the way most sellers have been taught to seek referrals.  The seller isn’t the problem; the strategy they’ve been taught is at fault.

How have most of us been taught to get referrals? 

For the most part out referral training consists of nothing more than “do a good job for your client and ask for referrals with a question such as, ‘Mr. Prospect, do you know anyone else who I might be able to help as I’ve helped you,’ or ‘Ms. Prospect, do you know of anyone who might benefit from my products or services?’

Certainly on occasion the training may be a bit more in-depth—one trainer might encourage sellers to ask the question early in the sale while another stresses the need to ask only after the sale has been completed, or one trainer might use slightly different phraseology or might encourage the seller to ask for a specific number of referrals, but the essence of the training is the same—do a good job and ask for referrals.

The problem is the process taught causes more problems than it solves.

First, the good news—the traditional referral training solves a major problem—it encourages the seller to seek referrals.  Although the success ratio is typically very low, it does produce the occasional prospect that turns into a client. 

Now the bad news—it fritters away one of the most valuable business generation resources a seller has—the potential quality referrals from a satisfied client.

Let’s take a look at the primary problems the traditional referral “method” creates:

  • The Referral Question Comes Out of the Blue:  Most clients are not comfortable when put on the spot to give referrals.  When we ask for a referral we may be thinking that we’re asking a small favor but most clients take the request far more seriously.  When a client gives a referral they believe they are putting their reputation on the line, something most don’t do lightly.  Clients need time to become comfortable with the idea of giving referrals.  If we really want quality referrals, we have to allow our client the time to become comfortable with the idea of giving us referrals before we ask.
  • We Don’t Give Our Client the Opportunity to Give Quality Referrals:  When we follow the traditional training of “do a good job and ask for referrals” we literally stand in front of our client (or are holding on the phone) expecting them to pop off the names of great prospects for us.  We are asking them to go through their mental file cabinet and come up with great referrals in the course of 10 or 15 seconds.  That is simply an unrealistic expectation on our part and we usually get what we deserve when we put a client in that position—little to nothing of value.
  • Our Client Doesn’t Know Who a Great Prospect for Us Is:  Not only do we expect our client to be able to give great referrals just off the top of their head, we expect them to know exactly who we can help when much of the time our client hasn’t had the opportunity to fully appreciate what we’ve done for them, much less know what all of our capabilities are and who is really a top prospect for us.  We’re asking our client to do the impossible—know our business as well as we know it.
  • It Ignores Human Nature:  The traditional referral request is one-sided and offers the client no reason to give referrals.  There are, obviously, clients who will give referrals even when there is nothing in it for them, but human nature being what it is, the referral request can be far more successful if it can be shown that it benefits the client as well as the seller.
  • It Makes the Client do the Work:  Rather than making it easy for our clients to give us great referrals, we make it as difficult as possible by asking them to do something they are ill prepared–and often not inclined–to do.  Giving high quality referrals should be so easy for our client that literally all they have to do is say “yes.”

Although referral generation as traditionally taught is laden with self-defeating issues, referral generation when practiced properly can be a highly successful business generation tool—one that can literally be the cornerstone of a successful business.

July 16, 2011

Yes, Virginia, There Is a Secret to Sales Success

A little over one hundred years ago the father of a young 8 year old girl named Virginia O’Hanlon encouraged her to write to a then leading New York newspaper, The Sun, and ask the question she’d just asked him—if there were in fact a Santa Claus, for all of her friends were telling her that he really didn’t exist and she wanted to know if they were correct.

The Sun answered Virginia in one of the most famous editorials ever published—Yes, Virginia, There Is a Santa Claus.  The reply was a resounding YES, there is a Santa Claus and the writer of the editorial laid out his proof.

Unfortunately, today all too many deny there is a real secret to sales success also.  Like Virginia’s friends, the claim is made that there really isn’t one single thing that if done can guarantee success in sales.  No, they say, you must become a master of every aspect of selling and then you’ll be prepared to become successful.  Oh, sure, they’ll admit, a few here and there appear to succeed by blind luck, but they’re the exception, not the rule.  Forget your silly search for the magic bullet of selling and resign yourself to learning the minutia of sales before seriously turning your eye to becoming truly successful.

Many, many others are all too eager to promote the idea of the sales secret—and to let you know that they are the sole keepers of the great secret that so few have known.  Better yet, they tell you, they’ll be happy to share the secret with you, but since it is such a valuable thing and should only be shared with those who are truly deserving of knowing, they must make sure you are worthy.  But since they really don’t have any other way of discerning who is and who isn’t worthy, they must charge an exorbitant fee to keep the riff-raff and undeserving from attaining it–and since you have the money to acquire it, you must be worthy and deserving of being given the great secret (as soon as your check clears, of course)..

Lucky for you I know this great secret and I’ll give it to you—and it won’t cost you $1,995.  Won’t even cost $995.  Heck, I’m not even going to charge you $9.95.  I’m simply going to give it to you—no charge.

Why in the world would I give such a tremendous secret away for nothing?  Because I know that once learned, the vast majority won’t put it into practice.  You see, the secret is simple, but it is far from easy.

Anyone can take this secret and become a successful seller—just how successful will depend on their commitment to implementing it.

So what is this secret?

Is it a super-duper sales process?  No.

Maybe a super special leads list?  Nope, not that.

How about some special words that will immediately connect with prospects?  Not that either.

Could it be a special super power like a super hero has?   Now we’re getting warm.

The secret is a super power of sorts–one that few are capable of acquiring.

This super power is tough-mindedness.  It’s the ability to out work and out prospect your competitors.  It’s the ability to take the rejection, the ‘no’s’, the frustration of making calls and not reaching anyone, of being stopped dead by a gatekeeper, by having the phone slammed down in your ear, of networking until you feel like you can’t network anymore–and to then do it again and again and again until you’ve reached your goals.

The secret is simple—if you have the determination and commitment to prospect longer and harder than anyone else, you will become successful.

I’ve seen this truth worked out time after time as new sellers enter the field and out work and outperform even the top sellers in their office. They know nothing–but work their tails off and sell like crazy. Unfortunately, many times after they “learn” that they’re not supposed to be having the success that they’re having their production craters. They’ve “learned” how to be average. Sometimes we simply learn the wrong things–such as there isn’t a secret to sales success.

This isn’t to say that all the other things in sales aren’t important.  They are.  You need a great sales process; you need to know how to probe and discover needs and wants; you need to know how to solve issues.  There is a great deal that every professional seller must learn.

But there is still one key to being successful in sales above all others—prospecting.

The better you become at qualifying suspects; the better you become at finding and solving real needs; the better you become at finding and connecting with your quality prospects; the easier success will be and the less time you’ll have to spend prospecting.

That being said, even if you know nothing about sales, have the world’s worst close ratio, have no discretion in who you spend time talking to. and haven’t the slightest idea of the difference between a closed-end and open-end question, if you outwork your competition in prospecting, you will reach a measure of success.

Don’t let anyone tell you there isn’t a simple secret to success in selling that alone can make you successful because there is.  It certainly isn’t complicated—but it is hard.  And it can be claimed and implemented by anyone. 

By all means, acquire a great sales process, learn the most sophisticated and effective prospecting strategies you can, learn to become great at identifying and solving prospect issues, learn all you can to make selling easier, but if you aren’t having the success you want, take heart—you now have the secret.

Take it, claim it as yours, implement it, and enjoy the rewards.

And know that even if your competitors know it too, few, if any, will claim it as their own because it simply costs too much for most.

June 11, 2011

Understand the Four Pillars of a Referral and You’ll Get More and Better Referrals

At first glance, a referral is a pretty simple thing.  For most salespeople, managers, and trainers, a referral is just a name and phone number that a client has given the salesperson once the salesperson has completed the sale and has done a good job for the client.

Once a salesperson has received a referral, contacting the referred party is just as simple.  The salesperson either will call the referred party mentioning to him or her that the client, which they know, referred the salesperson to them, or will ask the client to write a referral letter to the prospect and then the salesperson will call the prospect after they have received the letter.  A very simple, straightforward process.

Unfortunately, this process is totally and completely wrong, and has been proven by millions of salespeople to not work worth a darn. Nevertheless, this is what is taught in almost every sales course in the world.  And not only is it a waste of time and effort, it deceives the salespeople who don’t succeed with it into believing that the fault lies with them, not with a “system” that doesn’t work.

Generating a large number of high quality referrals requires far more than “doing a good job and asking for referrals.”  It requires a systematic process of planting referral seeds, watering them at every chance, weeding out problems and issues, and then reaping the rewards. 

If you want to generate a large number of high quality referrals from your clients, you must understand what a referral is based on.

A Referral is Based on a Foundation with Four Pillars-and you can control 3 of them:

The relationship between you and your client:  you can control this pillar of the foundation.  By instituting the full client relationship building process in detailed in Creating a Million Dollar a Year Sales Income: Sales Success through Client Referrals (John Wiley and Sons, 2007), you can create a strong relationship with your client built on mutual trust.  Clients don’t give referrals because they like you or even because you did a good job.  Clients hate to give referrals and unless they have a deep trust that you will not embarrass them and that you’ll deal honestly with the prospect they refer, they won’t be willing to give quality referrals.

Your client’s purchasing experience: you can control this pillar of the foundation.  You must discover exactly what your client’s expectations and priorities are, then meet-, and hopefully exceed them.  You cannot afford to guess or “think” you know what these are-you must know exactly and you can only do that by discussing them with your client and then making sure you meet them or exceed them-nothing less will do.

The relationship between your client and the prospect: you have no control over this pillar.  Clients will refer you to people they have very strong, positive relationships with and people they have very negative relationships with.  If the prospect trusts and respects our client, some that trust and respect will be automatically imbued to you.  On the other hand, if the prospect distrusts or doesn’t respect your client, some of that distrust or disrespect will also be imbued to you.  Your job is to find out exactly what the relationship between client and prospect is and then plan you approach accordingly.

Your initial contact with the prospect: you control this pillar also.  If you have built your relationship with the client properly, your client will be happy to contact the prospect in whatever method you desire.  As outlined in Creating a Million Dollar a Year Sales Income, there are a number of methods of contacting clients, each with their own pros and cons, depending on the strength or weakness of the client/prospect relationship.

As seen above, you have control of the majority of the pillars upon which a referral is based.  If any of the above is weak, your likelihood of generating quality referrals will decline and the weakness must be made up elsewhere.  In actuality, if one of the first two segments is weak, you will not be getting quality referrals-period.  However, you can mitigate the affects of the last two.

If the relationship between client and prospect is weak, use a stronger contact method.  Moreover, if the contact method is weak, convert the method into a stronger one.  For example, if your contact method is a phone call to a prospect who has a weak relationship with your client, try to bring in one or two other clients the prospect may know by reputation to build additional credibility.  Better yet, try to arrange a conference call between the prospect and your client.

Generating a large number of quality sales isn’t done by chance or luck, and neither is generating a large number of high quality referrals. Just as you need a well thought out process to consistently sell, you need a well thought out process to generate quality referrals.   You can significantly increase the volume and the success of your referrals if you understand the dynamics that generate quality referrals and then control those dynamics.

May 10, 2011

Bust Your Slump: Fast Track Referrals to Fill Your Pipeline in 30 Days

This is one of the twelve strategies presented in my newest book, Bust Your Slump: A Dozen Slump Busting Strategies to Fill Your Pipeline in 40 Days, available at Amazon, Barnes and Noble, or any fine bookseller.

 

Referrals are difficult for most salespeople to generate. Certainly, many will manage to get a name and phone number here and there. However, most of those names and phone numbers are little better than taking out the phonebook and pointing at a name at random.

It need not be that way.

By learning a disciplined, effective, proven process for generating a large number of high quality referrals from each of your clients and even your prospects, referral selling can become a reality. It is for many of the top producers in every industry.

Yet of course, you can’t possibly learn and implement a systematic process of referral generation and expect to see significant results in only 30 days.

The good news, however, is that you can still generate a substantial flow of business in only 30 days if you learn to turbo charge your client’s ability to give you a large number of quality referrals in a very short period of time–virtually overnight.

To Whom Do You Want To Be Referred?

If you expect to use referrals as an igniter of your pipeline in short order, you’ll have to do all of the work for your clients. Asking your database of clients for referrals will generate referrals if done correctly. However, the fruits of that request won’t be seen quickly.

You, of course, don’t have the luxury of waiting. You need business NOW.

You’re going to make giving referrals super easy for your client.

Sit down right now and draw up a list of 100 individuals or companies YOU KNOW you want to be referred to. Be specific. List the name, the phone number and the address of each individual or the name, phone number, address, and the specific person within the company for each company you wish to be referred to.

You may have to do some serious research. Nevertheless, your list is the critical part of this strategy.

Don’t stop at 50, or 70, or 90. List a minimum of 100 individuals or companies. Remember, you’re going to make it easy for your client to refer you. Someone must do the work, and that’s you.

When making your list, leave room on the right side of the sheet beside each name to put the name of the person who is going to refer you to that person or company.

Who Is Going To Refer You?

Great. You know 100 individuals or companies you want to be referred to.

So, how are you going to get referred to them? By your clients, of course.

Now, take your database of clients and examine each one. Which client do you have reason to believe can refer you to the first person on your list? The second? The third?

The more you know about each of your clients, the easier this part of the task will be. Hopefully, you’ve come to know the majority of your clients well.

Beside each prospect list the client–and their phone number–that you believe can refer you to that prospect.

If you have a list of 100 people or companies you know you want to be referred to, you’ll probably be able to identify 70 or so that you have reason to believe one of your clients may know and can refer you to.

If you have 70 prospects your clients may know, you’ll probably find they can actually refer you to about 45 to 50 of them.

If you are referred to 45 to 50, you’ll probably set appoints with about 30 to 35.

If you set appointments with 35, multiply 35 by your average close ratio, which is what you can expect to close. If your close ratio is 40%, you should have in your hand 14 short-term sales.

Get the Referrals

Now the question is: how do you turn your list into referrals?

Naturally, you are going to go back to each of the clients that you have identified as a potential referrer to someone on your list.

Start with the clients you have the strongest relationship with first. Better to get some positive reinforcement from your best relationship clients before you approach those you have a weaker relationship with.

However, before you approach anyone, you need to get comfortable with what you.re going to say. You don’t want to stumble and stammer. You want to come across to your client as comfortable, confident, and in control.

Referrals can be tricky. They are hard to generate if your client doesn’t believe you expect them and that you have earned them. If you doubt, that doubt will be picked up by your client, who will be less likely to agree to give them. After all, if you don’t believe what you.re saying, why should your client?

Get your act together before you make your call to your first client.

Don’t ask for referrals via a letter or email. You will be far more successful if you ask in person. Short of that, you must make a personal phone call. Generating referrals is a relationship action, not an impersonal request. You must deal with your client on a one-on-one, personal level.

When you call, before bringing up the referrals you seek, find out if your client has ANY needs, concerns, or requests regarding your product or service. In other words, make sure you still have a happy and fully satisfied client. If you don’t, you cannot expect referrals. If the client is dissatisfied for any reason, instead of referrals to get, you have customer service work to perform.

Then, once you know your client is still on the team, explain that you have a favor to ask. You have two or three people you believe you can help but have not been successful in being able to meet through the normal course of business. These are people that you thought for whatever reason the client might know and are hoping that if they do know them, that they would be comfortable referring you to these prospects.

If you have done your research and matching of prospect to client well, your client will probably know one or two of the prospects you ask about.

Once they acknowledge they know them, find out how well. With a referral, you are hoping to build a relationship with the referred prospect based on their trust and respect for your client. If the prospect trusts and respects your client, some of that trust and respect is imbued to you, so you start your relationship with the prospect from a positive position.

However, the person you’re asking about may not trust and respect your client. If they are just casual acquaintances, their trust relationship is neutral, as will be your starting point. In addition, if the prospect distrusts and disrespects your client, your starting point will be from a negative position because some of the distrust for your client will also be imbued to you.

It is important that you know where you start–the stronger the relationship between client and prospect, the better your chances of getting an appointment and a sale.

If you have done your job for the client well, they should have no problems referring you into the prospects they know.

Work your way through your list of 100 prospects. You should have more than a month’s work ahead of you. Again, you will probably have about 45 to 50 prospects to contact and set appointments with.

Don’t Just Get Referred, Get Introduced

One of the biggest mistakes you can make with a referral is to simply get your client to agree to ?refer” you. That’s what the average salesperson does, and it doesn’t work well.

Instead of just getting a verbal referral, that is having your client say, “Sure, I’ll refer you to them,” get a direct introduction to the prospect.

Not only is a direct introduction more powerful than an agreement to use the client’s name, a direct introduction, if done correctly, almost guarantees a private meeting with the prospect.

Although there are a number of ways of getting a direct introduction, when under the time pressure of a 30-day explosion of production, you have 3 realistic options:

1. A Letter from Your Client Written by You for Your Client’s Signature. A letter of introduction will probably be your standard format for a direct introduction. Don’t ask your client to write the letter because they will not have the sense of urgency you need, nor will they write the letter you want written.

Instead, write the letter for your client, on your client’s stationary, in your client’s voice. Use a standard format: 1st paragraph informs the prospect of what you did for the client; the 2nd gives the prospect an idea of what you might be able to do for the them; the 3rd states an exact day and time the client has asked you to call the prospect; and the 4th has your client asking the prospect to call the client after your meeting with the prospect so the client can get the prospect’s opinion of you and your company (the reason the client requests this is because the client respects the prospect’s judgment).

A letter from your client might look like this:

Dear Dave,

Remember our conversation a couple of months ago where we discussed how difficult sales have been? I met a gentleman by the name of Paul McCord with McCord Training and Development who has shown our sales team some tremendous strategies to find and connect with really high quality prospects. His work is already paying off with the sales team.

Paul’s strategies are really effective and would work perfectly for your company. I really believe it would be beneficial for you to spend a few minutes speaking with Paul and seeing how he can help your sales team as he has mine.

I’ve asked Paul to give you a call Monday morning at 9:30 at your office.

Dave, I really respect your opinion, so once you’ve met with Paul, I’d like to hear what you think about him and his company.

See ya Monday at Lions,

Ron

Have your client sign the letter and then mail it to the prospect. A day or two after the letter should have arrived, call the prospect. Assume the prospect has not read the letter. When you reach the prospect, immediately refer to your client and the letter, not to yourself. If you introduce yourself first, the prospect may determine you are nothing but another tele-marketer before you have the opportunity to mention your client’s name and they may mentally block you out. Don’t give them the chance. Gain their interest with your client’s name first.

So instead of saying something like: “Mr. Thomas, my name is Paul McCord with McCord Training and Development; say ?Mr. Thomas, have you read the letter that Janet Smith sent you recently?”  After they respond, introduce yourself. For example, ?Great. I’m the person she was introducing, Paul McCord of McCord Training and Development.” If he hasn’t read the letter, say something like: “I understand you’re busy. Janet asked me to connect with you and sent the letter to let you know she had asked me to call you. I’m Paul McCord with McCord Training and Development.”

Some salespeople think they can get around the letter by simply acting as if a letter has been sent. Bad move. Some prospects, after getting off the phone will look for the letter. If it isn’t there, only one of two things could have happened: the letter was lost in the mail or the salesperson lied. Guess which one they’ll assume?

2. A Phone Call to the Prospect from Your Client While You’re in the Client’s Office. This is, of course, a more powerful introduction than a letter. Don’t let your client call without you being present. You want a direct introduction and you want to know everything that is said during the conversation.

Although powerful, this format has some drawbacks. This method is powerful because it is unusual and because it allows the prospect to ask direct questions about you, your product and the client’s purchasing experience. This format can backfire if there are questions you’d rather the prospect not ask. If there are weak areas in your client’s purchase, this may not be your best choice.

However, this format almost guarantees a meeting with the prospect since it is difficult for the prospect to decline a meeting request when the client is also on the line.

3. A Lunch Meeting with Your Client, the Prospect and Yourself.  This is, by far, the most powerful introduction format you can use in this circumstance. A lunch format allows you to get to know the prospect as a friend prior to getting to know them as a prospect or client. In addition, in this format, your client acts as your salesperson; during the lunch, you.re there as the consultant. As with the phone call format, it is very difficult for the prospect to decline a meeting request in front of the client. Furthermore, since the meeting format is informal, you’ll have the opportunity to learn a great deal about the prospect and their business long before you begin discussing business. If you pay attention, you should have a great deal of ammunition before the subject of business comes up.

Execution

Developing referrals from your clients can take some time. You must develop your list of prospects you want to be referred to; you have to match those prospects to individual clients in your database; you must contact each individual client for the referrals; write the letters or arrange the calls or lunches; and then have the actual contact with the prospect. All of this before you even has the individual meeting with the prospect.

This method requires you to be disciplined, very well organized, and committed to working the process. You must have a sense of urgency or time will slip away and you won’t meet your 30-day goal.

Commit yourself to having your prospect list completed within 2 days. Keep in mind, developing this list may take some serious research. Then, once you have your prospect list, you should have matched prospects to clients by the end of day three. By the end of the fourth day, you should have contacted and received referrals from several clients.

As soon as you have referrals, start the introduction process. Don’t try to go through all 100 prospects prior to beginning getting introductions or you’ll run out of time.

Again, this format calls for good organizational and coordination skills. You’ll have to be gathering referrals while working referrals.

More than likely, you’ll find that you’ve filled your pipeline and still have more referrals to pursue. Good job! Not only will you have jumpstarted your sales again, you’ll carry that momentum into the coming months as well.

Does It Work?

Linda Hollander knows very well how well this strategy works. Linda is a mortgage loan officer. Like most in the mortgage business, Linda has had some rough times over the past couple of years.

Linda began by listing as many specific people as she could that she knew she wanted to be referred to. She didn’t hit 100. She only came up with a little over 70 names.

She matched 57 names on her list to clients in her database.

She immediately began asking clients for referrals. She is still working on her original list even after 90 days.

During her first 30 days, Linda received 23 referrals; met with 16 prospects; initiated 5 loans, all refinance loans. During her second month she met with an additional 19 prospects (including some referrals from her newly referred clients) and closed an additional 7 loans (3 of which were referrals from her referred prospects).

In her first 60 days she closed 11 loans from referrals (one loan failed to close). Her previous average was closing slightly less than 4 loans a month. During the 2 month period her average loan closing went from 4 to 7, almost doubling her production. And she still has referrals to work, not to mention the long-term potential based on the new contacts she has made.

April 11, 2011

Results of the 2011 Richardson/McCord Training Social Media in Marketing and Sales Survey

It has taken a bit of time and a lot of effort, but we finally have the 2011 Richardson/McCord Training Social Media in Marketing and Sales Survey results.

Some will be surprised, some won’t like the findings, and others will find they confirm what they suspected.

Two things stick out for me:

1.  Both salespeople and companies, whether they currently use social media or not, are struggling to figure out how to use it effectively. In fact, few—even those with sophisticated marketing departments investing time and effort into the process—have any real social media strategy.  Undoubtedly, this will be true for quite some time to come–and, of course, that means there are and will be thousands out looking to take your money to help you learn the hows of making Social Media work.  The lesson here: be extremely careful as there are many who know little more than how to construct a tweet who are anxious to take your money.

2.  To date, social media has been pretty useless in generating actual sales.  By far the most use salespeople and companies are getting from social media is in the area of prospecting–finding new prospects to contact using traditional means, not in making sales.  Again, this will probably be the case for a long, long time–it may always be the case.  Except for web-based sellers, few are realizing any real sales volume from their social media activities.  The lesson?  If you’re thinking you’re going to make easy money by spending time on social media and not having to do the hard work of prospecting, well, good luck with that thought.  On the other hand, if you’re not using social media to help identify and research prospects, you’re probably wasting a heck of a lot of time elsewhere.

Find out what else we discovered–it’s all in the survey.

I’ve decided to divert from the typical approach of requiring you to register to receive a sales oriented White Paper or making you subscribe to our newsletter.  Instead, I’m offering the report as a simple PDF download with the download link below.  I would encourage you, though, to either subscribe to the SELLING POWER Newsletter by simply shooting me an email at pmccord@mccordandassociates.com with the subject line “subscribe,” or clicking on the “Sign Me Up” button at the top of the sidebar to the right and subscribe to receive notification of new blog posts.  Subscription appreciated, not required.

If you have questions or anything needs a little more light put upon it, by all means, don’t hesitate to contact me.

Download social media survey

March 22, 2011

Using Social Media to Help You Generate Referrals from Clients

Referrals.

We all want them.

Yet most of us don’t get very many quality referrals. 

Instead we get the occasional name and phone number that we call a “referral” to someone who either has no need or want for our product or service, or couldn’t afford it even if they did want it.

What seems to be the problem with us sellers that prevents us from getting more than just a mere handful of quality referrals?

The good news is the problem isn’t with us.  We’re just fine.

The problem is the way we’ve been taught to get referrals.  It doesn’t work very well.

Most sales trainers and managers teach sellers that getting referrals is easy—just “do a good job” and then ask for referrals.  All you have to do to get referrals, they teach, is satisfy your client and then ask a question such as, “Ms. Client, who do you know that could benefit from my products or services?”

Simple, huh?

Yep.  So simple in fact that it’s just another piece of traditional sales training crap that isn’t worth the 45 seconds it takes to teach it.

The problem is the very concept of asking your client to do your prospecting for you is totally wrong.

Asking is passive.  When you ask your client to come up with a referral prospect for you, you’re asking them to do something they aren’t capable of doing.  You’re asking them to figure out who would be a good prospect for you—as though they knew your business.  As though they knew what constitutes a good prospect for you.  Unless they are your competitor, they don’t know.  It isn’t their job to know—it’s your job.  When you ask your client that silly referral question, you’re taking the future of your sales business out of your hands and putting it in their hands.

Asking is unfair.  When you ask your client for a referral you’re putting them on the spot.  Would you want someone to put you on the spot where you felt pressured to do something even if you didn’t want to? 

Asking is a waste of time.  Most of the time when we ask for a referral we are literally standing in front of or are on the phone expecting them to give us an immediate  answer.  We are giving our client 10 or 15 seconds to go through their mental file cabinet to come up with a great referral for us.  And then we’re surprised when they can’t.

So if asking doesn’t work, what does?

Instead of asking for a referral from your client, generate a referral for your client to give you.

Referral generation is proactive.  When you generate a referral for your client to give you, you are doing all the work for your client.  You’re making it easy for them to give you great referrals.  You’re taking the load off them so they don’t have to come up with a referral—all they have to do is utter one simple little word—“yes.”

Referral generation takes work.  Where asking is easy, referral generation takes work.  Like most things in life, getting high quality referrals takes work.  Although asking for referrals is easy, the result is what most easy things in life bring—little to nothing.  In order to generate a referral for your client to give you, you have to figure out who your client knows that you know you want to be referred to.  That means you have to become a bit of a detective.

Referral generation guarantees you get great referrals.  When you generate a referral for your client to give, you insure you get a great referral because it is a referral to someone you know you want to be referred to.  How would you like to get one or two or three referrals from every one of your clients, all to prospects that you know are great prospects for you?  It would change your business overnight.

The process of referral generation is really pretty simple.  You figure out who your client knows that you know you want to be referred to.  Then when it comes time to ask for a referral, you ask your client if they know the person you want to be referred to.  If you’ve done your homework well, they’ll say they know them.  Then you ask for the introduction.

The conversation goes something like this:

You:  “John, I’ve been trying to connect with Don Jones at XYZ Corporation for quite some time and just haven’t been able to make the connection.  It dawned on me that you just might know Don.  Do you know him?”  If you’ve done your homework well, you know the answer will be yes—or at least you have good reason to believe it will be yes.

John:  “Sure, I’ve known Don for about four years, why?”

You:  “Great.  Would you be comfortable introducing me to him?”  If you’ve done your job well and have a very satisfied client who trusts you, he’ll agree to give the introduction.

John didn’t have to come up with a name.  He didn’t have to fret over who to refer or what it was you really wanted.  He didn’t have to invest time or effort.  All he had to do was say “yes.”

You get an introduction to a great prospect and all your client had to do way say one little word.

Super easy—for your client.  And really not very hard for you, either.

But how do you find out who your client knows?

That may seem like the hard part, but with practice, it’s really pretty easy and doesn’t take a great deal of time.

Learning to really listen to your client is one key.  In the course of getting to know your client you can pick up a great many ideas about who they know—references to friends, family, and co-workers.  References to employers, past employers, organizations and associations, or places of worship or recreation they belong to.  All of these are fruitful areas to figure out who your client knows or likely knows.  Small talk can become one of the most informative areas of helping you generate referrals.

Becoming highly observant is also key.  If you meet in your client’s office or home, you can pick up all kinds of clues: what awards or certifications do they have on the wall?  Are their pictures with potential prospects?  Who are their vendors and suppliers?  What association or organization directories are in the bookcase?

Today social media can be a quick way to discover who your client knows that you know you want to be referred to. 

Does your client have a LinkedIn, Twitter, or Facebook account? 

If they do, search through their connections, followers, and/or friends to find great referral prospects for you.  Once you’ve identified a few, try to figure out which ones your client knows best and concentrate on using them as your generated referral.

What groups does your client belong to on LinkedIn and Facebook?  These not only tell you what their interests are, but can also help identify prospects that your client knows.

Does your client have a blog?  If so spend some time reading it.  It is a great way to get to know your client—and who they know.  Do they talk about specific people or companies they know or deal with?  Are there certain people that comment frequently on their posts?

Do a Google search on your client.  You might find other social media sites your client belongs to or possibly comments he or she has made on blogs or various media sites.

Social media is proving to be a tremendous help in a number of business applications.  Referral generation is one—and one that you should be taking advantage of. 

Don’t waste your time asking for referrals.  Learn to make giving you high quality referrals so easy your clients will love saying yes.

March 7, 2011

Bust Your Slump–The Benefits of Digital Media

Isn’t the digital world grand?  No waiting days or weeks for stuff to be delivered.  And the discounts companies can offer are amazing!

Now, thanks to digital media, if you aren’t bringing in the sales you want or you’re in an honest to goodness sales slump, you can get real help in getting your pipeline filled quickly—for next to nothing.

My newest book, Bust Your Slump: A Dozen Slump Busting Strategies to Fill Your Pipeline in 30 Days has received a great amount of praise and recognition—from being one of the 10 finalists for book of the year at Top Sales Awards to being named one of the top sales books of 2010 by RainToday.com to being nominated for the Chally Sales Book of the Year award.  But more importantly, it has received praise from sellers who have actually used it to quickly and radically increase their sales.

The paperback sells for $14.95 and the Kindle has sold for $9.99.

For a limited time you can purchase the Kindle version or the E-book for only $2.99.  That’s an incredible 70% off the original Kindle price and a full 80% off the paperback price.  Because of production costs, I can’t make this offer on the paperback version, but because of the immense savings that digital media affords the publishing industry; you can get every word of the paperback book via Kindle or E-book for only $2.99.

Bust Your Slump is designed for sellers who want to increase their sales quickly.  Not all of the 12 strategies will be right for you and your market, but no matter whether you sell B2B or B2C, if your sales cycle is long or a one-time close, whether you sell locally, regionally, nationally, or internationally, there are strategies that will help you create business quickly.

These dozen strategies are designed to do one thing—bring in business quickly.  But they are not designed to be long-term strategies.  Most will create a big burst of business but because of the very nature of the strategy, it can’t be relied on long-term (just how many orphan files can you find in your office?).

The first chapter of the book outlines a four step process for filling your pipeline now and guaranteeing that you never again face a sales slump.

Grab your copy of the book at Amazon Kindle or the E-book while at this incredible price and get your pipeline filled NOW!

November 6, 2010

How to Guarantee You Get Great Referrals

At first glance, a referral is a pretty simple thing.  For most sellers, managers, and trainers, a referral is just a name and phone number that a client has given once the seller has completed the sale, has done a good job for the client, and then asks a general question such as, “do you know of anyone else that I might be able to help?,” or, “do you know of anyone else that might benefit from my products and services?”.

Once a seller has received a referral, contacting the referred party is just as simple.  The seller will call the referred party mentioning to him or her that the client, which the prospect knows, referred the seller to them, or on occasion they will ask the client to write a referral letter to the prospect and then the seller will call the prospect after they have received the letter.  A very simple, straightforward process.

Unfortunately, this “do a good job and ask for a referral” process is totally and completely wrong, and has been proven by millions of sellers to not work worth a darn. Nevertheless, this is what is taught in almost every sales course that mentions referrals.  And not only is it a waste of time and effort, it deceives the seller who don’t succeed when using it into believing that the fault lies with him or her, not with a “system” that doesn’t work.

Generating a large number of high quality referrals requires far more than “doing a good job and asking for a referral.” 

If you want to generate a large number of high quality referrals from your clients, you must understand what creates a quality referral.

A high quality referral is built on a foundation that has four solid pillars—and as the seller; you have control over three of them:

  1. Your relationship with your client:  Most clients don’t give referrals because they like you or even because you did a good job.  Certainly there are a few clients that will give referrals at the drop of a hat, but most clients hate to give referrals and unless they have a deep trust that you will not embarrass them and that you’ll deal honestly and competently with the prospect they refer, they won’t be willing to give quality referrals. 

    Most clients believe that when they give a referral they’re not just suggesting that someone they know speak to the person they are referring, they believe that they are endorsing the seller, in essence telling the person they refer to the seller that they don’t need to do any research because the referrer has already done it and this person they’re referring is the best choice.  To get clients to take this step doesn’t come without having built a strong bond of trust.

  2. Your client’s purchasing experience:  Discover what your client’s purchasing expectations and priorities are, then meet and, hopefully, exceed them. 

    Few sellers ever exceed their client’s expectations because even though they think they know what the client’s expectations are, they never really try to find out, they never ask.  You cannot afford to guess or “think” you know what your client’s expectations are–you must know exactly, and you can only do that by discussing them with your client and then making sure you meet or exceed them–nothing less will do. 

    If you don’t specifically ask your client what their expectations are, the best you can do is meet or exceed what you think your client’s expectations should be.

    Clients assume that the purchasing experience anyone they refer you  to will have a similar or WORSE experience than they had.  The further away from their desired purchasing experience they have, the less likely they will be to give a quality referral.

  3. The relationship between your client and the prospect:  This is the one pillar you have no control over.  Clients will refer you to people they have very strong, positive relationships with–and people they have very negative relationships with. 

    If the prospect trusts and respects your client, some of that trust and respect will be automatically imbued to you and you start your relationship with them from a position of strength.  On the other hand, if the prospect distrusts or doesn’t respect your client, some of that distrust or disrespect will also be imbued to you and you will start your relationship with them from a position of weakness.  Your job is to find out exactly what the relationship between client and prospect is and then plan you introduction approach to them accordingly.

  4. Your initial contact with the prospect:  To this point you’ve invested a great deal time and effort in establishing your relationship with your client, making sure they have exactly the purchasing experience they want, and finding out what the relationship is between your client and the prospect they are referring.  After investing so much time and attention to get this far, the last thing you want is just a name and phone number.

    Instead of getting a traditional “referral” consisting of the name and phone of the prospect and permission to use your client’s name, get a direct introduction from your client to the prospect. 

    There are three primary methods of getting a direct introduction:

    Letter of introduction from your client to the prospect:  Ask your client to write a letter introducing you to the prospect.  However, once you’ve asked your client to write the letter, let them know that you know how busy they are.  Offer to take the burden off of them by writing the letter for their signature.  If you allow them to write the letter it won’t communicate a reason for the prospect to meet with you and it will be written on their schedule—which could be never.

    The letter you write should give a brief overview of what you’ve done for your client and why the client believes it would be beneficial for the prospect to meet with you, as well as the time and date to expect a call from you.  Have your client sign it.  Phone the prospect at the exact time your client indicated you’d be calling.

    Introductory phone call from your client to the prospect:  An even stronger introduction is a phone call from your client to the prospect to introduce you.  This method puts additional pressure on the prospect to agree to set an appointment with you as it is difficult for the prospect to say “no” to your meeting request when they know that their friend, co-worker, or associate is standing next to you when you ask.

    The downside to a phone call is it gives the prospect the opportunity to ask questions of your client.  If there were aspects to the sale that didn’t go well there is a good chance they will surface during the phone call.

    Lunch meeting with your client, the prospect, and yourself:  A tremendously strong introduction method.  Have your client invite the prospect to lunch or coffee with the three of you.  Encourage your client to let the prospect know this is NOT a sales meeting, just an opportunity for the two of you to meet one another. 

    One of the strange things that often happens during the meeting is the client ends up being your salesperson and you are there simply as the consultant.  And, again, it is very difficult for the prospect to say “no” when you request a meeting.

As seen above, you have control of the majority of the pillars upon which a referral is based.  If any of the above is weak, your likelihood of generating quality referrals will decline and the weakness must be made up elsewhere.  In actuality, if one of the first two segments is weak, you will not be getting quality referrals–period.  However, you can mitigate the third one by using a strong method of introduction.

Generating a large number of quality sales isn’t done by chance or luck, and neither is generating a large number of high quality referrals. Just as you need a well thought out process to consistently sell, you need a well thought out process to generate quality referrals.   You can significantly increase the volume and the success of your referrals if you understand the dynamics that generate quality referrals and then control those dynamics.

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