1 of 4 pages
How to Overcome Client Reluctance to Give Referrals
0 Comments on this document
Document Transcript:
How to Overcome Client Reluctance to Give Referrals
by Paul McCord
Virtually every professional has been taught that generating referrals
from clients and prospects are the way to success, but studies show that
less than 15% of all professionals generate enough referrals to significantly
affect their business. Traditional referral training has been to "do a good job
and ask for referrals." Using the traditional approach, the typical advisor will
get an occasional "referral" or two from their clients, but these tend to be
just names and phone numbers, rather than qualified prospects.
Traditional referral gathering methods do not work
The failure to generate a large number of high quality referrals lies in the
traditional method's approach to the client. The traditional "do a good job
and ask for referrals" approach creates several roadblocks to getting
referrals.
The client is not prepared to give referrals
By waiting until the service is complete and then asking for referrals,
your client has not had an opportunity to prepare for your request. To the
client, the request comes from out of the blue. When you approach your
client with your request without giving them an opportunity to think about it,
you put them on the spot. You are giving them only a few seconds to go
through their mental file cabinet.
The client does not know what you need
Even if your client takes a few seconds to think about it, they really do
not know what you need. It may seem obvious to you, but your client really
has little idea of what a good referral for you is.You assume that because your practice involves a number of services
for small to mid-size businesses, from management consulting, to tax
preparation, to financial analysis, your client is immediately going to think,
"What other companies do I know or do I do business with that might need
Toms' advice and expertise?"
Wrong assumption. What they actually think is "what does this person
want from me?"
Your client does not have a reason to give referrals
Additionally, the traditional method of "do a good job and ask for
referrals" does not give your client a reason to give you referrals. We
assume that if we have done a good job, the client will like and respect us
and be willing to give us referrals. Again, this is far from the case.
Most clients will not give quality referrals just because they like you or
because you have done a good job for them. They need a reason to give
you referrals. They need to understand why it is in their best interest to
give you referrals.
Clients assume that whomever they refer you to will be more
demanding and critical they have been. When a client gives a referral, they
are putting their reputation and image on the line with the person to whom
they are referring you. They are concerned about what their friend or
acquaintance is going to think of them and their judgment, particularly if you
mess up.
The client doesn't have an objective standard by which to measure
your performance
The traditional referral generation method does not give the client an
objective standard by which to measure the quality of your performance.You and your client may "feel" you have done a good job, but when you ask
for referrals, they begin to think back over the process more critically and
question whether you have really performed up to standards they believe
others would find acceptable.
If the two of you agree up-front on exactly what you need to do in
order to "do a good job," they will have an objective basis to decide if they
trust you enough and if you have performed well enough to earn the right to
be sent to people they really know well and respect.
Most advisors do not ask for referrals
Finally, although not a direct result of the traditional referral generation
method, an equally serious issue is studies show that the majority of the
time professionals do not really ask for referrals–rather they suggest
referrals.
Instead of asking a direct question seeking referrals such as "John,
what other business owners do you know that I may be able help solve some
crucial issues?" the typical professional will make a weak suggestion such as
"John, if you happen to know someone I can help would you mind letting me
know?" Or, "John, if you run across someone, who could use my services,
would mind giving them my card?" Rather than a request for referrals,
these are throwaway sentences, quickly forgotten by most clients.
Traditional referral training is inherently unfair to you and your client. It
does not give you the tools needed to successfully work with your client to
generate quality referrals, and it gives your client neither a reason to give
referrals, nor a chance to become comfortable referring you to people they
know and respect.
You can generate a large number of high quality referralsYet, it is possible to generate a very large number of high quality
referrals from your clients. You need to have a referral generation process
that:
* Informs your client ahead of time that you will ask for referrals
* Lets the client know exactly what a referral for you is
* Educates your client on why providing referrals is in their best
interests
* Provides agreement with your client on a objective criteria to
determine your
performance
By forming a process where you eliminate the problems associated with the
traditional referral generating method, you will increase not only the number
of referrals you receive from your clients, but the quality of each referral
also.
Bestselling author, speaker, sales trainer and management consultant, Paul McCord
is a leading authority on prospecting, referral generation, and personal marketing.
His bestselling book, Creating a Million Dollar a Year Sales Income: Sales Success
through Client Referrals teaches the techniques and strategies the mega-producers
use to generate their huge volume of referral business. He may be contacted at
pmccord@mccordandassociates.com or via his website
http://www.powerreferralselling.com
Copyright 2007, Paul McCord
Reproduction with full and proper attribution and notification only. Please notify
pmccord@mccordandassociates.com when reproducing in any form
by Paul McCord
Virtually every professional has been taught that generating referrals
from clients and prospects are the way to success, but studies show that
less than 15% of all professionals generate enough referrals to significantly
affect their business. Traditional referral training has been to "do a good job
and ask for referrals." Using the traditional approach, the typical advisor will
get an occasional "referral" or two from their clients, but these tend to be
just names and phone numbers, rather than qualified prospects.
Traditional referral gathering methods do not work
The failure to generate a large number of high quality referrals lies in the
traditional method's approach to the client. The traditional "do a good job
and ask for referrals" approach creates several roadblocks to getting
referrals.
The client is not prepared to give referrals
By waiting until the service is complete and then asking for referrals,
your client has not had an opportunity to prepare for your request. To the
client, the request comes from out of the blue. When you approach your
client with your request without giving them an opportunity to think about it,
you put them on the spot. You are giving them only a few seconds to go
through their mental file cabinet.
The client does not know what you need
Even if your client takes a few seconds to think about it, they really do
not know what you need. It may seem obvious to you, but your client really
has little idea of what a good referral for you is.You assume that because your practice involves a number of services
for small to mid-size businesses, from management consulting, to tax
preparation, to financial analysis, your client is immediately going to think,
"What other companies do I know or do I do business with that might need
Toms' advice and expertise?"
Wrong assumption. What they actually think is "what does this person
want from me?"
Your client does not have a reason to give referrals
Additionally, the traditional method of "do a good job and ask for
referrals" does not give your client a reason to give you referrals. We
assume that if we have done a good job, the client will like and respect us
and be willing to give us referrals. Again, this is far from the case.
Most clients will not give quality referrals just because they like you or
because you have done a good job for them. They need a reason to give
you referrals. They need to understand why it is in their best interest to
give you referrals.
Clients assume that whomever they refer you to will be more
demanding and critical they have been. When a client gives a referral, they
are putting their reputation and image on the line with the person to whom
they are referring you. They are concerned about what their friend or
acquaintance is going to think of them and their judgment, particularly if you
mess up.
The client doesn't have an objective standard by which to measure
your performance
The traditional referral generation method does not give the client an
objective standard by which to measure the quality of your performance.You and your client may "feel" you have done a good job, but when you ask
for referrals, they begin to think back over the process more critically and
question whether you have really performed up to standards they believe
others would find acceptable.
If the two of you agree up-front on exactly what you need to do in
order to "do a good job," they will have an objective basis to decide if they
trust you enough and if you have performed well enough to earn the right to
be sent to people they really know well and respect.
Most advisors do not ask for referrals
Finally, although not a direct result of the traditional referral generation
method, an equally serious issue is studies show that the majority of the
time professionals do not really ask for referrals–rather they suggest
referrals.
Instead of asking a direct question seeking referrals such as "John,
what other business owners do you know that I may be able help solve some
crucial issues?" the typical professional will make a weak suggestion such as
"John, if you happen to know someone I can help would you mind letting me
know?" Or, "John, if you run across someone, who could use my services,
would mind giving them my card?" Rather than a request for referrals,
these are throwaway sentences, quickly forgotten by most clients.
Traditional referral training is inherently unfair to you and your client. It
does not give you the tools needed to successfully work with your client to
generate quality referrals, and it gives your client neither a reason to give
referrals, nor a chance to become comfortable referring you to people they
know and respect.
You can generate a large number of high quality referralsYet, it is possible to generate a very large number of high quality
referrals from your clients. You need to have a referral generation process
that:
* Informs your client ahead of time that you will ask for referrals
* Lets the client know exactly what a referral for you is
* Educates your client on why providing referrals is in their best
interests
* Provides agreement with your client on a objective criteria to
determine your
performance
By forming a process where you eliminate the problems associated with the
traditional referral generating method, you will increase not only the number
of referrals you receive from your clients, but the quality of each referral
also.
Bestselling author, speaker, sales trainer and management consultant, Paul McCord
is a leading authority on prospecting, referral generation, and personal marketing.
His bestselling book, Creating a Million Dollar a Year Sales Income: Sales Success
through Client Referrals teaches the techniques and strategies the mega-producers
use to generate their huge volume of referral business. He may be contacted at
pmccord@mccordandassociates.com or via his website
http://www.powerreferralselling.com
Copyright 2007, Paul McCord
Reproduction with full and proper attribution and notification only. Please notify
pmccord@mccordandassociates.com when reproducing in any form
